State of Illinois
91st General Assembly

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SB945 Engrossed                                LRB9105715EGfg

 1        AN  ACT  to  amend  the Illinois Pension Code by changing
 2    Section 14-103.12.

 3        Be it enacted by the People of  the  State  of  Illinois,
 4    represented in the General Assembly:

 5        Section  5.   The  Illinois  Pension  Code  is amended by
 6    changing Section 14-103.12 as follows:

 7        (40 ILCS 5/14-103.12) (from Ch. 108 1/2, par. 14-103.12)
 8        Sec. 14-103.12.  Final average compensation.
 9        (a)  For  retirement  and  survivor   annuities,   "final
10    average compensation" means the monthly compensation obtained
11    by  dividing the total compensation of an employee during the
12    period of: (1) the 48 consecutive months  of  service  within
13    the   last   120   months  of  service  in  which  the  total
14    compensation was the highest, or  (2)  the  total  period  of
15    service,  if  less than 48 months, by the number of months of
16    service in such period;  provided  that  for  purposes  of  a
17    retirement  annuity  the average compensation for the last 12
18    months of the 48-month period  shall  not  exceed  the  final
19    average compensation by more than 25%.
20        (b)  For  death and disability benefits, in the case of a
21    full-time employee, "final average  compensation"  means  the
22    greater  of  (1)  the rate of compensation of the employee at
23    the date of death or disability multiplied by 1 in  the  case
24    of  a  salaried  employee,  by  174  in the case of an hourly
25    employee, and by 22 in the case of a per  diem  employee,  or
26    (2)  for  benefits  commencing  on  or after January 1, 1991,
27    final average compensation  as  determined  under  subsection
28    (a).
29        For  purposes of this paragraph, full or part-time status
30    shall be certified by the employing agency.   Final  rate  of
31    compensation  for  a  part-time  employee  shall be the total
SB945 Engrossed             -2-                LRB9105715EGfg
 1    compensation earned during the last full calendar month prior
 2    to the date of death or disability.
 3        (c)  Notwithstanding the provisions  of  subsection  (a),
 4    for  the  purpose  of  calculating  retirement  and  survivor
 5    annuities  of  persons  with  at  least  20 years of eligible
 6    creditable service  as  defined  in  Section  14-110,  "final
 7    average   compensation"   means   (1)  the  monthly  rate  of
 8    compensation received by  the  person  on  the  last  day  of
 9    eligible  creditable  service  (but not to exceed 115% of the
10    average monthly compensation received by the person  for  the
11    last  24  months of service, unless the person was in service
12    as a State  policeman  before  the  effective  date  of  this
13    amendatory  Act  of  1997, and not to include any increase in
14    compensation  received  during  the  90  days  following  any
15    general election at which a governor is elected,  unless  the
16    increase   is   specifically   provided  for  by  statute  or
17    collective bargaining agreement or the person was a member of
18    the System earning eligible creditable  service  on  the  day
19    preceding  the  effective  date of this amendatory Act of the
20    91st  General  Assembly),  or   (2)   the   average   monthly
21    compensation received by the person for the last 48 months of
22    service prior to retirement, whichever is greater.
23        (d)  Notwithstanding  the  provisions  of subsection (a),
24    for a person who was receiving, on the date of retirement  or
25    death,  a  disability  benefit  calculated  under subdivision
26    (b)(2) of this Section, the final average  compensation  used
27    to  calculate the disability benefit may be used for purposes
28    of calculating the retirement and survivor annuities.
29        (e)  In computing the final average compensation, periods
30    of military leave shall not be considered.
31        (f)  The changes to this Section made by this  amendatory
32    Act  of  1997  (redefining  final  average  compensation  for
33    members  under  the alternative formula) apply to members who
34    retire on or after January 1, 1998, without regard to whether
SB945 Engrossed             -3-                LRB9105715EGfg
 1    employment terminated  before  the  effective  date  of  this
 2    amendatory Act of 1997.
 3    (Source: P.A. 90-65, eff. 7-7-97.)

 4        Section  99.  Effective date.  This Act takes effect upon
 5    becoming law.

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