97TH GENERAL ASSEMBLY
State of Illinois
2011 and 2012
HB3427

 

Introduced 2/24/2011, by Rep. David Harris

 

SYNOPSIS AS INTRODUCED:
 
40 ILCS 5/1-161 new

    Amends the Illinois Pension Code. Requires all pension funds and retirement systems established under the Code to exclude the following items when computing the compensation, salary, or wages upon which an annuity, pension, or other benefit is to be based: (i) lump sum payments for retirement, severance, and sick or vacation time and (ii) any annual increase in compensation, salary, or wages of more than 6%. Applies only to persons who are participants on the effective date or who first become participants on or after the effective date. Effective immediately.


LRB097 08984 JDS 49117 b

FISCAL NOTE ACT MAY APPLY
PENSION IMPACT NOTE ACT MAY APPLY

 

 

A BILL FOR

 

HB3427LRB097 08984 JDS 49117 b

1    AN ACT concerning public employee benefits.
 
2    Be it enacted by the People of the State of Illinois,
3represented in the General Assembly:
 
4    Section 5. The Illinois Pension Code is amended by adding
5Section 1-161 as follows:
 
6    (40 ILCS 5/1-161 new)
7    Sec. 1-161. Calculation of compensation, salary, and
8wages.
9    (a) Notwithstanding any other provision of this Code,
10beginning on the effective date of this Section, all pension
11funds and retirement systems established under this Code must
12exclude the following items when computing the compensation,
13salary, or wages upon which an annuity, pension, or other
14benefit is to be based: (i) lump sum payments for retirement,
15severance, and sick or vacation time and (ii) any annual
16increase in compensation, salary, or wages of more than 6%.
17    (b) This Section applies only to persons who, on the
18effective date of this Section, are participants in a pension
19fund or retirement system established under this Code or, on or
20after the effective date of this Section, first become
21participants of a pension fund or retirement system established
22under this Code.
 

 

 

HB3427- 2 -LRB097 08984 JDS 49117 b

1    Section 99. Effective date. This Act takes effect upon
2becoming law.