State of Illinois
2015 and 2016


Introduced 7/14/2015, by Sen. Bill Cunningham


40 ILCS 5/15-111  from Ch. 108 1/2, par. 15-111

    Amends the State Universities Article of the Illinois Pension Code. Provides that severance payments are not included in the definition of "earnings".

LRB099 13062 RPS 36944 b






SB2156LRB099 13062 RPS 36944 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 changing
5Section 15-111 as follows:
6    (40 ILCS 5/15-111)  (from Ch. 108 1/2, par. 15-111)
7    (Text of Section WITHOUT the changes made by P.A. 98-599,
8which has been held unconstitutional)
9    Sec. 15-111. Earnings.
10    (a) "Earnings": An amount paid for personal services equal
11to the sum of the basic compensation plus extra compensation
12for summer teaching, overtime or other extra service. For
13periods for which an employee receives service credit under
14subsection (c) of Section 15-113.1 or Section 15-113.2,
15earnings are equal to the basic compensation on which
16contributions are paid by the employee during such periods.
17Compensation for employment which is irregular, intermittent
18and temporary shall not be considered earnings, unless the
19participant is also receiving earnings from the employer as an
20employee under Section 15-107.
21    With respect to transition pay paid by the University of
22Illinois to a person who was a participating employee employed
23in the fire department of the University of Illinois's



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1Champaign-Urbana campus immediately prior to the elimination
2of that fire department:
3        (1) "Earnings" includes transition pay paid to the
4    employee on or after the effective date of this amendatory
5    Act of the 91st General Assembly.
6        (2) "Earnings" includes transition pay paid to the
7    employee before the effective date of this amendatory Act
8    of the 91st General Assembly only if (i) employee
9    contributions under Section 15-157 have been withheld from
10    that transition pay or (ii) the employee pays to the System
11    before January 1, 2001 an amount representing employee
12    contributions under Section 15-157 on that transition pay.
13    Employee contributions under item (ii) may be paid in a
14    lump sum, by withholding from additional transition pay
15    accruing before January 1, 2001, or in any other manner
16    approved by the System. Upon payment of the employee
17    contributions on transition pay, the corresponding
18    employer contributions become an obligation of the State.
19    (a-5) Payments made to facilitate termination of
20employment or to induce someone to retire, or not to retire,
21are not for services rendered but are made in conjunction with
22an employee's termination of employment or retirement and are
23not "earnings". These payments shall not be included in the
24final rate of earnings under Section 15-112.
25    (b) For a Tier 2 member, the annual earnings shall not
26exceed $106,800; however, that amount shall annually



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1thereafter be increased by the lesser of (i) 3% of that amount,
2including all previous adjustments, or (ii) one half the annual
3unadjusted percentage increase (but not less than zero) in the
4consumer price index-u for the 12 months ending with the
5September preceding each November 1, including all previous
7    For the purposes of this Section, "consumer price index u"
8means the index published by the Bureau of Labor Statistics of
9the United States Department of Labor that measures the average
10change in prices of goods and services purchased by all urban
11consumers, United States city average, all items, 1982-84 =
12100. The new amount resulting from each annual adjustment shall
13be determined by the Public Pension Division of the Department
14of Insurance and made available to the boards of the retirement
15systems and pension funds by November 1 of each year.
16(Source: P.A. 98-92, eff. 7-16-13.)