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91_SB0945eng 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.