Full Text of SB2156 99th General Assembly
SB2156 99TH GENERAL ASSEMBLY |
| | 99TH GENERAL ASSEMBLY
State of Illinois
2015 and 2016 SB2156 Introduced 7/14/2015, by Sen. Bill Cunningham SYNOPSIS AS INTRODUCED: |
| 40 ILCS 5/15-111 | from Ch. 108 1/2, par. 15-111 |
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Amends the State Universities Article of the Illinois Pension Code. Provides that severance payments are not included in the definition of "earnings".
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| | FISCAL NOTE ACT MAY APPLY | | PENSION IMPACT NOTE ACT MAY APPLY |
| | A BILL FOR |
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| | | SB2156 | | LRB099 13062 RPS 36944 b |
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| 1 | | AN ACT concerning public employee benefits.
| 2 | | Be it enacted by the People of the State of Illinois,
| 3 | | represented in the General Assembly:
| 4 | | Section 5. The Illinois Pension Code is amended by changing | 5 | | Section 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, | 8 | | which has been held unconstitutional)
| 9 | | Sec. 15-111. Earnings.
| 10 | | (a) "Earnings": An amount paid for personal services equal | 11 | | to the sum of
the basic compensation plus extra compensation | 12 | | for summer teaching,
overtime or other extra service. For | 13 | | periods for which an employee receives
service credit under | 14 | | subsection (c) of Section 15-113.1 or Section 15-113.2,
| 15 | | earnings are equal to the basic compensation on which | 16 | | contributions are
paid by the employee during such periods. | 17 | | Compensation for employment which is
irregular, intermittent | 18 | | and temporary shall not be considered earnings, unless
the | 19 | | participant is also receiving earnings from the employer as an | 20 | | employee
under Section 15-107.
| 21 | | With respect to transition pay paid by the University of | 22 | | Illinois to a
person who was a participating employee employed | 23 | | in the fire department of
the University of Illinois's |
| | | SB2156 | - 2 - | LRB099 13062 RPS 36944 b |
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| 1 | | Champaign-Urbana campus immediately prior to
the elimination | 2 | | of 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 | 20 | | employment or to induce someone to retire, or not to retire, | 21 | | are not for services rendered but are made in conjunction with | 22 | | an employee's termination of employment or retirement and are | 23 | | not "earnings". These payments shall not be included in the | 24 | | final rate of earnings under Section 15-112. | 25 | | (b) For a Tier 2 member, the annual earnings shall not | 26 | | exceed $106,800; however, that amount shall annually |
| | | SB2156 | - 3 - | LRB099 13062 RPS 36944 b |
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| 1 | | thereafter be increased by the lesser of (i) 3% of that amount, | 2 | | including all previous adjustments, or (ii) one half the annual | 3 | | unadjusted percentage increase (but not less than zero) in the | 4 | | consumer price index-u for the 12 months ending with the | 5 | | September preceding each November 1, including all previous | 6 | | adjustments. | 7 | | For the purposes of this Section, "consumer price index u" | 8 | | means the index published by the Bureau of Labor Statistics of | 9 | | the United States Department of Labor that measures the average | 10 | | change in prices of goods and services purchased by all urban | 11 | | consumers, United States city average, all items, 1982-84 = | 12 | | 100. The new amount resulting from each annual adjustment shall | 13 | | be determined by the Public Pension Division of the Department | 14 | | of Insurance and made available to the boards of the retirement | 15 | | systems and pension funds by November 1 of each year. | 16 | | (Source: P.A. 98-92, eff. 7-16-13.)
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