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| Public Act 096-0525 |
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AN ACT concerning public employee benefits.
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Be it enacted by the People of the State of Illinois,
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represented in the General Assembly:
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Section 5. The Illinois Pension Code is amended by changing | ||||
Section 14-103.12 as follows:
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(40 ILCS 5/14-103.12) (from Ch. 108 1/2, par. 14-103.12)
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Sec. 14-103.12. Final average compensation.
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(a) For retirement and
survivor annuities, "final average | ||||
compensation" means the monthly
compensation obtained by | ||||
dividing the total compensation of an employee
during the | ||||
period of: (1) the 48 consecutive months of service within the
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last 120 months of service in which the total compensation was | ||||
the highest,
or (2) the total period of service, if less than | ||||
48 months, by the number
of months of service in such period; | ||||
provided that for purposes of
a retirement annuity the average | ||||
compensation for the last 12 months of the
48-month period | ||||
shall not exceed the final average compensation by more than
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25%.
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(b) For death and disability benefits, in the case of a | ||||
full-time
employee, "final average compensation" means the | ||||
greater of (1) the rate
of compensation of the employee at the | ||||
date of death or disability
multiplied by 1 in the case of a | ||||
salaried employee, by 174 in the case of
an hourly employee, | ||||
and by 22 in the case of a per diem employee, or (2)
for | ||
benefits commencing on or after January 1, 1991, final average
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compensation as determined under subsection (a).
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For purposes of this paragraph, full or part-time status | ||
shall be
certified by the employing agency. Final rate of | ||
compensation for a
part-time employee shall be the total | ||
compensation earned during the last
full calendar month prior | ||
to the date of death or disability.
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(c) Notwithstanding the provisions of subsection (a), for | ||
the purpose
of calculating retirement and survivor annuities of | ||
persons with at least
20 years of eligible creditable service | ||
as defined in Section 14-110, "final average compensation" | ||
means the monthly rate of
compensation received by the person | ||
on the last day of eligible creditable
service (but not to | ||
exceed 115% of the average monthly compensation received
by the | ||
person for the last 24 months of service, unless the person was | ||
in
service as a State policeman before the effective date of | ||
this amendatory
Act of 1997), or the average monthly | ||
compensation received by the person for
the last 48 months of | ||
service prior to retirement, whichever is greater.
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(d) Notwithstanding the provisions of subsection (a), for a | ||
person who
was receiving, on the date of retirement or death, a | ||
disability benefit
calculated under subdivision (b)(2) of this | ||
Section, the final average
compensation used to calculate the | ||
disability benefit may be used for
purposes of calculating the | ||
retirement and survivor annuities.
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(e) In computing the final average compensation, periods of | ||
military leave
shall not be considered.
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(f) The changes to this Section made by this amendatory Act | ||
of 1997
(redefining final average compensation for members | ||
under the alternative
formula) apply to members who retire on | ||
or after January 1, 1998, without
regard to whether employment | ||
terminated before the effective date of this
amendatory Act of | ||
1997.
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(g) For a member on leave of absence without pay who | ||
purchases service credit for such period of leave pursuant to | ||
subsection (l) of Section 14-104, earnings are assumed to be | ||
equal to the rate of compensation in effect immediately prior | ||
to the leave. If no contributions are required to establish | ||
service credit for the period of leave, the member may elect to | ||
establish earnings credit for the leave period within 48 months | ||
after returning to work by making the employee and employer | ||
contributions required by subsection (l) of Section 14-104, | ||
based on the rate of compensation in effect immediately prior | ||
to the leave, plus interest at the actuarially assumed rate. In | ||
determining the contributions required for establishing | ||
service credit under this subsection (g), the interest shall be | ||
calculated from the beginning of the leave of absence to the | ||
date of payment. | ||
(Source: P.A. 90-65, eff. 7-7-97.)
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Section 99. Effective date. This Act takes effect upon | ||
becoming law.
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