<tr><td class="xsl" colspan="3"><p> </p> </td></tr></td></tr><tr><td class="xsl" colspan="3"><table class="xsl" width="100%"><colgroup width="5%"></colgroup><colgroup width="5%"></colgroup><colgroup width="30%"></colgroup><colgroup width="20%"></colgroup><colgroup width="40%"></colgroup><tr><td class="number"></td><td class="junk"></td><td class="xsl" align="left">HB3193 Engrossed</td><td class="xsl" align="center"></td><td class="xsl" align="right">LRB104 06092 RPS 16125 b</td></tr></table></td></tr><tr><td class="xsl"> </td></tr><tr><td class="number">1</td><td class="junk"></td><td class="xsl" ><code> </code><code>AN ACT concerning public employee benefits.</code> </td></tr><tr><td class="number">2</td><td class="junk"></td><td class="xsl" ><code> </code><b><code>Be it enacted by the People of the State of Illinois, </code></b></td></tr><tr><td class="number">3</td><td class="junk"></td><td class="xsl" ><b><code>represented in the General Assembly:</code></b> </td></tr><tr><td class="number">4</td><td class="junk"></td><td class="xsl" ><code> </code><code>Section 5. </code><code>The Illinois Pension Code is amended by </code></td></tr><tr><td class="number">5</td><td class="junk"></td><td class="xsl" ><code>changing Sections 15-112 and 15-148 as follows:</code> </td></tr><tr><td class="number">6</td><td class="junk"></td><td class="xsl" ><code> </code><code>(40 ILCS 5/15-112)</code><code> </code><code>(from Ch. 108 1/2, par. 15-112)</code></td></tr><tr><td class="number">7</td><td class="junk"></td><td class="xsl" ><code> </code><code>Sec. 15-112. </code><code>Final rate of earnings. </code><code>"Final rate of </code></td></tr><tr><td class="number">8</td><td class="junk"></td><td class="xsl" ><code>earnings":</code></td></tr><tr><td class="number">9</td><td class="junk"></td><td class="xsl" ><code> </code><code>(a) This subsection (a) applies only to a Tier 1 member. </code></td></tr><tr><td class="number">10</td><td class="junk"></td><td class="xsl" ><code> </code><code>For an employee who is paid on an hourly basis or who </code></td></tr><tr><td class="number">11</td><td class="junk"></td><td class="xsl" ><code>receives an annual salary in installments during 12 months of </code></td></tr><tr><td class="number">12</td><td class="junk"></td><td class="xsl" ><code>each academic year, the average annual earnings during the 48 </code></td></tr><tr><td class="number">13</td><td class="junk"></td><td class="xsl" ><code>consecutive calendar month period ending with the last day of </code></td></tr><tr><td class="number">14</td><td class="junk"></td><td class="xsl" ><code>final termination of employment or the 4 consecutive academic </code></td></tr><tr><td class="number">15</td><td class="junk"></td><td class="xsl" ><code>years of service in which the employee's earnings were the </code></td></tr><tr><td class="number">16</td><td class="junk"></td><td class="xsl" ><code>highest, whichever is greater. For any other employee, the </code></td></tr><tr><td class="number">17</td><td class="junk"></td><td class="xsl" ><code>average annual earnings during the 4 consecutive academic </code></td></tr><tr><td class="number">18</td><td class="junk"></td><td class="xsl" ><code>years of service in which his or her earnings were the highest. </code></td></tr><tr><td class="number">19</td><td class="junk"></td><td class="xsl" ><code>For an employee with less than 48 months or 4 consecutive </code></td></tr><tr><td class="number">20</td><td class="junk"></td><td class="xsl" ><code>academic years of service, the average earnings during his or </code></td></tr><tr><td class="number">21</td><td class="junk"></td><td class="xsl" ><code>her entire period of service. The earnings of an employee with </code></td></tr><tr><td class="number">22</td><td class="junk"></td><td class="xsl" ><code>more than 36 months of service under item (a) of Section </code></td></tr><tr><td class="number">23</td><td class="junk"></td><td class="xsl" ><code>15-113.1 prior to the date of becoming a participant are, for </code></td></tr></table><table class="xsl" width="650"><tr><td class="lineNum" colspan="3"><p> </p><p> </p></td></tr><tr><td class="xsl" colspan="3"><table class="xsl" width="100%"><colgroup width="5%"></colgroup><colgroup width="5%"></colgroup><colgroup width="30%"></colgroup><colgroup width="20%"></colgroup><colgroup width="40%"></colgroup><tr><td class="number"></td><td class="junk"></td><td class="xsl" align="left">HB3193 Engrossed</td><td class="xsl" align="center">- 2 -</td><td class="xsl" align="right">LRB104 06092 RPS 16125 b</td></tr></table></td></tr><tr><td class="xsl"> </td></tr><tr><td class="number">1</td><td class="junk"></td><td class="xsl" ><code>such period, considered equal to the average earnings during </code></td></tr><tr><td class="number">2</td><td class="junk"></td><td class="xsl" ><code>the last 36 months of such service.</code></td></tr><tr><td class="number">3</td><td class="junk"></td><td class="xsl" ><code> </code><code>(b) This subsection (b) applies to a Tier 2 member.</code></td></tr><tr><td class="number">4</td><td class="junk"></td><td class="xsl" ><code> </code><code>For an employee who is paid on an hourly basis or who </code></td></tr><tr><td class="number">5</td><td class="junk"></td><td class="xsl" ><code>receives an annual salary in installments during 12 months of </code></td></tr><tr><td class="number">6</td><td class="junk"></td><td class="xsl" ><code>each academic year, the average annual earnings obtained by </code></td></tr><tr><td class="number">7</td><td class="junk"></td><td class="xsl" ><code>dividing by 8 the total earnings of the employee during the 96 </code></td></tr><tr><td class="number">8</td><td class="junk"></td><td class="xsl" ><code>consecutive months in which the total earnings were the </code></td></tr><tr><td class="number">9</td><td class="junk"></td><td class="xsl" ><code>highest within the last 120 months prior to termination </code><u><code>or the </code></u></td></tr><tr><td class="number">10</td><td class="junk"></td><td class="xsl" ><u><code>average annual earnings during the 8 consecutive academic </code></u></td></tr><tr><td class="number">11</td><td class="junk"></td><td class="xsl" ><u><code>years of service within the 10 years of service prior to </code></u></td></tr><tr><td class="number">12</td><td class="junk"></td><td class="xsl" ><u><code>termination in which the employee's earnings were the highest, </code></u></td></tr><tr><td class="number">13</td><td class="junk"></td><td class="xsl" ><u><code>whichever is greater</code></u><code>.</code></td></tr><tr><td class="number">14</td><td class="junk"></td><td class="xsl" ><code> </code><code>For any other employee, the average annual earnings during </code></td></tr><tr><td class="number">15</td><td class="junk"></td><td class="xsl" ><code>the 8 consecutive academic years </code><u><code>of service</code></u><code> within the 10 </code></td></tr><tr><td class="number">16</td><td class="junk"></td><td class="xsl" ><code>years </code><u><code>of service</code></u><code> prior to termination in which the employee's </code></td></tr><tr><td class="number">17</td><td class="junk"></td><td class="xsl" ><code>earnings were the highest. For an employee with less than 96 </code></td></tr><tr><td class="number">18</td><td class="junk"></td><td class="xsl" ><code>consecutive months or 8 consecutive academic years of service, </code></td></tr><tr><td class="number">19</td><td class="junk"></td><td class="xsl" ><code>whichever is necessary, the average earnings during his or her </code></td></tr><tr><td class="number">20</td><td class="junk"></td><td class="xsl" ><code>entire period of service. </code></td></tr><tr><td class="number">21</td><td class="junk"></td><td class="xsl" ><code> </code><u><code>The changes made to this subsection (b) by this amendatory </code></u></td></tr><tr><td class="number">22</td><td class="junk"></td><td class="xsl" ><u><code>Act of the 104th General Assembly are corrections and </code></u></td></tr><tr><td class="number">23</td><td class="junk"></td><td class="xsl" ><u><code>clarifications of existing law and are intended to be </code></u></td></tr><tr><td class="number">24</td><td class="junk"></td><td class="xsl" ><u><code>retroactive to January 1, 2011 (the effective date of Public </code></u></td></tr><tr><td class="number">25</td><td class="junk"></td><td class="xsl" ><u><code>Act 96-1490), notwithstanding the provisions of Section </code></u></td></tr><tr><td class="number">26</td><td class="junk"></td><td class="xsl" ><u><code>1-103.1 of this Code.</code></u><code> </code></td></tr></table><table class="xsl" width="650"><tr><td class="lineNum" colspan="3"><p> </p><p> </p></td></tr><tr><td class="xsl" colspan="3"><table class="xsl" width="100%"><colgroup width="5%"></colgroup><colgroup width="5%"></colgroup><colgroup width="30%"></colgroup><colgroup width="20%"></colgroup><colgroup width="40%"></colgroup><tr><td class="number"></td><td class="junk"></td><td class="xsl" align="left">HB3193 Engrossed</td><td class="xsl" align="center">- 3 -</td><td class="xsl" align="right">LRB104 06092 RPS 16125 b</td></tr></table></td></tr><tr><td class="xsl"> </td></tr><tr><td class="number">1</td><td class="junk"></td><td class="xsl" ><code> </code><code>(c) For an employee on leave of absence with pay, or on </code></td></tr><tr><td class="number">2</td><td class="junk"></td><td class="xsl" ><code>leave of absence without pay who makes contributions during </code></td></tr><tr><td class="number">3</td><td class="junk"></td><td class="xsl" ><code>such leave, earnings are assumed to be equal to the basic </code></td></tr><tr><td class="number">4</td><td class="junk"></td><td class="xsl" ><code>compensation on the date the leave began.</code></td></tr><tr><td class="number">5</td><td class="junk"></td><td class="xsl" ><code> </code><code>(d) For an employee on disability leave, earnings are </code></td></tr><tr><td class="number">6</td><td class="junk"></td><td class="xsl" ><code>assumed to be equal to the basic compensation on the date </code></td></tr><tr><td class="number">7</td><td class="junk"></td><td class="xsl" ><code>disability occurs or the average earnings during the 24 months </code></td></tr><tr><td class="number">8</td><td class="junk"></td><td class="xsl" ><code>immediately preceding the month in which disability occurs, </code></td></tr><tr><td class="number">9</td><td class="junk"></td><td class="xsl" ><code>whichever is greater.</code></td></tr><tr><td class="number">10</td><td class="junk"></td><td class="xsl" ><code> </code><code>(e) For a Tier 1 member who retires on or after </code><u><code>August 22, </code></u></td></tr><tr><td class="number">11</td><td class="junk"></td><td class="xsl" ><u><code>1997 (</code></u><code>the effective date of </code><u><code>Public Act 90-511)</code></u><code> </code><strike><code>this amendatory </code></strike></td></tr><tr><td class="number">12</td><td class="junk"></td><td class="xsl" ><strike><code>Act of 1997</code></strike><code> with at least 20 years of service as a firefighter </code></td></tr><tr><td class="number">13</td><td class="junk"></td><td class="xsl" ><code>or police officer under this Article, the final rate of </code></td></tr><tr><td class="number">14</td><td class="junk"></td><td class="xsl" ><code>earnings shall be the annual rate of earnings received by the </code></td></tr><tr><td class="number">15</td><td class="junk"></td><td class="xsl" ><code>participant on his or her last day as a firefighter or police </code></td></tr><tr><td class="number">16</td><td class="junk"></td><td class="xsl" ><code>officer under this Article, if that is greater than the final </code></td></tr><tr><td class="number">17</td><td class="junk"></td><td class="xsl" ><code>rate of earnings as calculated under the other provisions of </code></td></tr><tr><td class="number">18</td><td class="junk"></td><td class="xsl" ><code>this Section.</code></td></tr><tr><td class="number">19</td><td class="junk"></td><td class="xsl" ><code> </code><code>(f) If a Tier 1 member is an employee for at least 6 months </code></td></tr><tr><td class="number">20</td><td class="junk"></td><td class="xsl" ><code>during the academic year in which his or her employment is </code></td></tr><tr><td class="number">21</td><td class="junk"></td><td class="xsl" ><code>terminated, the annual final rate of earnings shall be 25% of </code></td></tr><tr><td class="number">22</td><td class="junk"></td><td class="xsl" ><code>the sum of (1) the annual basic compensation for that year, and </code></td></tr><tr><td class="number">23</td><td class="junk"></td><td class="xsl" ><code>(2) the amount earned during the 36 months immediately </code></td></tr><tr><td class="number">24</td><td class="junk"></td><td class="xsl" ><code>preceding that year, if this is greater than the final rate of </code></td></tr><tr><td class="number">25</td><td class="junk"></td><td class="xsl" ><code>earnings as calculated under the other provisions of this </code></td></tr><tr><td class="number">26</td><td class="junk"></td><td class="xsl" ><code>Section.</code></td></tr></table><table class="xsl" width="650"><tr><td class="lineNum" colspan="3"><p> </p><p> </p></td></tr><tr><td class="xsl" colspan="3"><table class="xsl" width="100%"><colgroup width="5%"></colgroup><colgroup width="5%"></colgroup><colgroup width="30%"></colgroup><colgroup width="20%"></colgroup><colgroup width="40%"></colgroup><tr><td class="number"></td><td class="junk"></td><td class="xsl" align="left">HB3193 Engrossed</td><td class="xsl" align="center">- 4 -</td><td class="xsl" align="right">LRB104 06092 RPS 16125 b</td></tr></table></td></tr><tr><td class="xsl"> </td></tr><tr><td class="number">1</td><td class="junk"></td><td class="xsl" ><code> </code><code>(g) In the determination of the final rate of earnings for </code></td></tr><tr><td class="number">2</td><td class="junk"></td><td class="xsl" ><code>an employee, that part of an employee's earnings for any </code></td></tr><tr><td class="number">3</td><td class="junk"></td><td class="xsl" ><code>academic year beginning after June 30, 1997, which exceeds the </code></td></tr><tr><td class="number">4</td><td class="junk"></td><td class="xsl" ><code>employee's earnings with that employer for the preceding year </code></td></tr><tr><td class="number">5</td><td class="junk"></td><td class="xsl" ><code>by more than </code><u><code>20%</code></u><code> </code><strike><code>20 percent</code></strike><code> shall be excluded; in the event </code></td></tr><tr><td class="number">6</td><td class="junk"></td><td class="xsl" ><code>that an employee has more than one employer this limitation </code></td></tr><tr><td class="number">7</td><td class="junk"></td><td class="xsl" ><code>shall be calculated separately for the earnings with each </code></td></tr><tr><td class="number">8</td><td class="junk"></td><td class="xsl" ><code>employer. In making such calculation, only the basic </code></td></tr><tr><td class="number">9</td><td class="junk"></td><td class="xsl" ><code>compensation of employees shall be considered, without regard </code></td></tr><tr><td class="number">10</td><td class="junk"></td><td class="xsl" ><code>to vacation or overtime or to contracts for summer employment. </code></td></tr><tr><td class="number">11</td><td class="junk"></td><td class="xsl" ><code>Beginning September 1, 2024, this subsection (g) also applies </code></td></tr><tr><td class="number">12</td><td class="junk"></td><td class="xsl" ><code>to an employee who has been employed at 1/2 time or less for 3 </code></td></tr><tr><td class="number">13</td><td class="junk"></td><td class="xsl" ><code>or more years. </code></td></tr><tr><td class="number">14</td><td class="junk"></td><td class="xsl" ><code> </code><code>(h) The following are not considered as earnings in </code></td></tr><tr><td class="number">15</td><td class="junk"></td><td class="xsl" ><code>determining </code><u><code>the</code></u><code> final rate of earnings: (1) severance or </code></td></tr><tr><td class="number">16</td><td class="junk"></td><td class="xsl" ><code>separation pay, (2) retirement pay, (3) payment for unused </code></td></tr><tr><td class="number">17</td><td class="junk"></td><td class="xsl" ><code>sick leave, and (4) payments from an employer for the period </code></td></tr><tr><td class="number">18</td><td class="junk"></td><td class="xsl" ><code>used in determining </code><u><code>the</code></u><code> final rate of earnings for any purpose </code></td></tr><tr><td class="number">19</td><td class="junk"></td><td class="xsl" ><code>other than (i) services rendered, (ii) leave of absence or </code></td></tr><tr><td class="number">20</td><td class="junk"></td><td class="xsl" ><code>vacation granted during that period, and (iii) vacation of up </code></td></tr><tr><td class="number">21</td><td class="junk"></td><td class="xsl" ><code>to 56 work days allowed upon termination of employment; except </code></td></tr><tr><td class="number">22</td><td class="junk"></td><td class="xsl" ><code>that, if the benefit has been collectively bargained between </code></td></tr><tr><td class="number">23</td><td class="junk"></td><td class="xsl" ><code>the employer and the recognized collective bargaining agent </code></td></tr><tr><td class="number">24</td><td class="junk"></td><td class="xsl" ><code>pursuant to the Illinois Educational Labor Relations Act, </code></td></tr><tr><td class="number">25</td><td class="junk"></td><td class="xsl" ><code>payment received during a period of up to 2 academic years for </code></td></tr><tr><td class="number">26</td><td class="junk"></td><td class="xsl" ><code>unused sick leave may be considered as earnings in accordance </code></td></tr></table><table class="xsl" width="650"><tr><td class="lineNum" colspan="3"><p> </p><p> </p></td></tr><tr><td class="xsl" colspan="3"><table class="xsl" width="100%"><colgroup width="5%"></colgroup><colgroup width="5%"></colgroup><colgroup width="30%"></colgroup><colgroup width="20%"></colgroup><colgroup width="40%"></colgroup><tr><td class="number"></td><td class="junk"></td><td class="xsl" align="left">HB3193 Engrossed</td><td class="xsl" align="center">- 5 -</td><td class="xsl" align="right">LRB104 06092 RPS 16125 b</td></tr></table></td></tr><tr><td class="xsl"> </td></tr><tr><td class="number">1</td><td class="junk"></td><td class="xsl" ><code>with the applicable collective bargaining agreement, subject </code></td></tr><tr><td class="number">2</td><td class="junk"></td><td class="xsl" ><code>to the 20% increase limitation of this Section. Any unused </code></td></tr><tr><td class="number">3</td><td class="junk"></td><td class="xsl" ><code>sick leave considered as earnings under this Section shall not </code></td></tr><tr><td class="number">4</td><td class="junk"></td><td class="xsl" ><code>be taken into account in calculating service credit under </code></td></tr><tr><td class="number">5</td><td class="junk"></td><td class="xsl" ><code>Section 15-113.4.</code></td></tr><tr><td class="number">6</td><td class="junk"></td><td class="xsl" ><code> </code><code>(i) Intermittent periods of service shall be considered as </code></td></tr><tr><td class="number">7</td><td class="junk"></td><td class="xsl" ><code>consecutive in determining </code><u><code>the</code></u><code> final rate of earnings.</code></td></tr><tr><td class="number">8</td><td class="junk"></td><td class="xsl" ><code>(Source: P.A. 103-548, eff. 8-11-23; revised 7-18-24.)</code> </td></tr><tr><td class="number">9</td><td class="junk"></td><td class="xsl" ><code> </code><code>(40 ILCS 5/15-148)</code><code> </code><code>(from Ch. 108 1/2, par. 15-148)</code></td></tr><tr><td class="number">10</td><td class="junk"></td><td class="xsl" ><code> </code><code>Sec. 15-148. </code><code>Survivors insurance </code><u><code>benefits; general</code></u><code> </code></td></tr><tr><td class="number">11</td><td class="junk"></td><td class="xsl" ><strike><code>benefits - General</code></strike><code> provisions. </code><code>The survivors annuity is </code></td></tr><tr><td class="number">12</td><td class="junk"></td><td class="xsl" ><code>payable monthly. Any annuity due but unpaid upon the death of </code></td></tr><tr><td class="number">13</td><td class="junk"></td><td class="xsl" ><code>the annuitant, shall be paid to the annuitant's estate.</code></td></tr><tr><td class="number">14</td><td class="junk"></td><td class="xsl" ><code> </code><code>A person who becomes entitled to more than one survivors </code></td></tr><tr><td class="number">15</td><td class="junk"></td><td class="xsl" ><code>insurance benefit because of the death of 2 or more persons </code></td></tr><tr><td class="number">16</td><td class="junk"></td><td class="xsl" ><code>shall receive only the largest of the benefits; except that </code></td></tr><tr><td class="number">17</td><td class="junk"></td><td class="xsl" ><code>this limitation does not apply to a survivors insurance </code></td></tr><tr><td class="number">18</td><td class="junk"></td><td class="xsl" ><code>beneficiary who is entitled to a survivor's annuity by reason </code></td></tr><tr><td class="number">19</td><td class="junk"></td><td class="xsl" ><code>of a mental or physical disability.</code></td></tr><tr><td class="number">20</td><td class="junk"></td><td class="xsl" ><code> </code><code>A survivors insurance beneficiary or the personal </code></td></tr><tr><td class="number">21</td><td class="junk"></td><td class="xsl" ><code>representative of the estate of a deceased survivors insurance </code></td></tr><tr><td class="number">22</td><td class="junk"></td><td class="xsl" ><code>beneficiary or the personal representative of a survivors </code></td></tr><tr><td class="number">23</td><td class="junk"></td><td class="xsl" ><code>insurance beneficiary who is under a legal disability may </code></td></tr><tr><td class="number">24</td><td class="junk"></td><td class="xsl" ><code>waive the right to receive survivorship benefits, provided </code></td></tr><tr><td class="number">25</td><td class="junk"></td><td class="xsl" ><code>written notice of the waiver is given by the beneficiary or </code></td></tr></table><table class="xsl" width="650"><tr><td class="lineNum" colspan="3"><p> </p><p> </p></td></tr><tr><td class="xsl" colspan="3"><table class="xsl" width="100%"><colgroup width="5%"></colgroup><colgroup width="5%"></colgroup><colgroup width="30%"></colgroup><colgroup width="20%"></colgroup><colgroup width="40%"></colgroup><tr><td class="number"></td><td class="junk"></td><td class="xsl" align="left">HB3193 Engrossed</td><td class="xsl" align="center">- 6 -</td><td class="xsl" align="right">LRB104 06092 RPS 16125 b</td></tr></table></td></tr><tr><td class="xsl"> </td></tr><tr><td class="number">1</td><td class="junk"></td><td class="xsl" ><code>representative to the board within 6 months after the </code><u><code>System </code></u></td></tr><tr><td class="number">2</td><td class="junk"></td><td class="xsl" ><u><code>notified that person of the benefits payable upon the</code></u><code> death of </code></td></tr><tr><td class="number">3</td><td class="junk"></td><td class="xsl" ><code>the participant or annuitant and before any payment is made </code></td></tr><tr><td class="number">4</td><td class="junk"></td><td class="xsl" ><code>pursuant to an application filed by such person.</code></td></tr><tr><td class="number">5</td><td class="junk"></td><td class="xsl" ><code>(Source: P.A. 92-424, eff. 8-17-01.)</code> </td></tr><tr><td class="number">6</td><td class="junk"></td><td class="xsl" ><code> </code><code>Section 99. </code><code>Effective date. </code><code>This Act takes effect upon </code></td></tr><tr><td class="number">7</td><td class="junk"></td><td class="xsl" ><code>becoming law.</code>