Illinois 2025-2026 Regular Session

Illinois Senate Bill SB1895 Compare Versions

Only one version of the bill is available at this time.

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1	1	104TH GENERAL ASSEMBLY State of Illinois 2025 and 2026 SB1895 Introduced 2/6/2025, by Sen. Robert F. Martwick SYNOPSIS AS INTRODUCED: 40 ILCS 5/15-112 from Ch. 108 1/2, par. 15-112 Amends the State Universities Article of the Illinois Pension Code. In provisions concerning the determination of the final rate of earnings for Tier 2 members, provides that, for an employee who is paid on an hourly basis or who receives an annual salary in installments during 12 months of each academic year, the average annual earnings is obtained by dividing by 8 the total earnings of the employee during the 96 consecutive months in which the total earnings were the highest within the last 120 months prior to termination or the average annual earnings during the 8 consecutive academic years of service within the 10 years of service prior to termination in which the employee's earnings were the highest, whichever is greater (instead of only the average annual earnings obtained by dividing by 8 the total earnings of the employee during the 96 consecutive months in which the total earnings were the highest within the last 120 months prior to termination). Provides that the changes made by the amendatory Act are corrections and clarifications of existing law and are intended to be retroactive to January 1, 2011 (the effective date of Public Act 96-1490). Effective immediately. LRB104 06091 RPS 16124 b A BILL FOR 104TH GENERAL ASSEMBLY State of Illinois 2025 and 2026 SB1895 Introduced 2/6/2025, by Sen. Robert F. Martwick SYNOPSIS AS INTRODUCED: 40 ILCS 5/15-112 from Ch. 108 1/2, par. 15-112 40 ILCS 5/15-112 from Ch. 108 1/2, par. 15-112 Amends the State Universities Article of the Illinois Pension Code. In provisions concerning the determination of the final rate of earnings for Tier 2 members, provides that, for an employee who is paid on an hourly basis or who receives an annual salary in installments during 12 months of each academic year, the average annual earnings is obtained by dividing by 8 the total earnings of the employee during the 96 consecutive months in which the total earnings were the highest within the last 120 months prior to termination or the average annual earnings during the 8 consecutive academic years of service within the 10 years of service prior to termination in which the employee's earnings were the highest, whichever is greater (instead of only the average annual earnings obtained by dividing by 8 the total earnings of the employee during the 96 consecutive months in which the total earnings were the highest within the last 120 months prior to termination). Provides that the changes made by the amendatory Act are corrections and clarifications of existing law and are intended to be retroactive to January 1, 2011 (the effective date of Public Act 96-1490). Effective immediately. LRB104 06091 RPS 16124 b LRB104 06091 RPS 16124 b A BILL FOR
2	2	104TH GENERAL ASSEMBLY State of Illinois 2025 and 2026 SB1895 Introduced 2/6/2025, by Sen. Robert F. Martwick SYNOPSIS AS INTRODUCED:
3	3	40 ILCS 5/15-112 from Ch. 108 1/2, par. 15-112 40 ILCS 5/15-112 from Ch. 108 1/2, par. 15-112
4	4	40 ILCS 5/15-112 from Ch. 108 1/2, par. 15-112
5	5	Amends the State Universities Article of the Illinois Pension Code. In provisions concerning the determination of the final rate of earnings for Tier 2 members, provides that, for an employee who is paid on an hourly basis or who receives an annual salary in installments during 12 months of each academic year, the average annual earnings is obtained by dividing by 8 the total earnings of the employee during the 96 consecutive months in which the total earnings were the highest within the last 120 months prior to termination or the average annual earnings during the 8 consecutive academic years of service within the 10 years of service prior to termination in which the employee's earnings were the highest, whichever is greater (instead of only the average annual earnings obtained by dividing by 8 the total earnings of the employee during the 96 consecutive months in which the total earnings were the highest within the last 120 months prior to termination). Provides that the changes made by the amendatory Act are corrections and clarifications of existing law and are intended to be retroactive to January 1, 2011 (the effective date of Public Act 96-1490). Effective immediately.
6	6	LRB104 06091 RPS 16124 b LRB104 06091 RPS 16124 b
7	7	LRB104 06091 RPS 16124 b
8	8	A BILL FOR
9	9	SB1895LRB104 06091 RPS 16124 b SB1895 LRB104 06091 RPS 16124 b
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11	11	1 AN ACT concerning public employee benefits.
12	12	2 Be it enacted by the People of the State of Illinois,
13	13	3 represented in the General Assembly:
14	14	4 Section 5. The Illinois Pension Code is amended by
15	15	5 changing Section 15-112 as follows:
16	16	6 (40 ILCS 5/15-112) (from Ch. 108 1/2, par. 15-112)
17	17	7 Sec. 15-112. Final rate of earnings. "Final rate of
18	18	8 earnings":
19	19	9 (a) This subsection (a) applies only to a Tier 1 member.
20	20	10 For an employee who is paid on an hourly basis or who
21	21	11 receives an annual salary in installments during 12 months of
22	22	12 each academic year, the average annual earnings during the 48
23	23	13 consecutive calendar month period ending with the last day of
24	24	14 final termination of employment or the 4 consecutive academic
25	25	15 years of service in which the employee's earnings were the
26	26	16 highest, whichever is greater. For any other employee, the
27	27	17 average annual earnings during the 4 consecutive academic
28	28	18 years of service in which his or her earnings were the highest.
29	29	19 For an employee with less than 48 months or 4 consecutive
30	30	20 academic years of service, the average earnings during his or
31	31	21 her entire period of service. The earnings of an employee with
32	32	22 more than 36 months of service under item (a) of Section
33	33	23 15-113.1 prior to the date of becoming a participant are, for
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37	37	104TH GENERAL ASSEMBLY State of Illinois 2025 and 2026 SB1895 Introduced 2/6/2025, by Sen. Robert F. Martwick SYNOPSIS AS INTRODUCED:
38	38	40 ILCS 5/15-112 from Ch. 108 1/2, par. 15-112 40 ILCS 5/15-112 from Ch. 108 1/2, par. 15-112
39	39	40 ILCS 5/15-112 from Ch. 108 1/2, par. 15-112
40	40	Amends the State Universities Article of the Illinois Pension Code. In provisions concerning the determination of the final rate of earnings for Tier 2 members, provides that, for an employee who is paid on an hourly basis or who receives an annual salary in installments during 12 months of each academic year, the average annual earnings is obtained by dividing by 8 the total earnings of the employee during the 96 consecutive months in which the total earnings were the highest within the last 120 months prior to termination or the average annual earnings during the 8 consecutive academic years of service within the 10 years of service prior to termination in which the employee's earnings were the highest, whichever is greater (instead of only the average annual earnings obtained by dividing by 8 the total earnings of the employee during the 96 consecutive months in which the total earnings were the highest within the last 120 months prior to termination). Provides that the changes made by the amendatory Act are corrections and clarifications of existing law and are intended to be retroactive to January 1, 2011 (the effective date of Public Act 96-1490). Effective immediately.
41	41	LRB104 06091 RPS 16124 b LRB104 06091 RPS 16124 b
42	42	LRB104 06091 RPS 16124 b
43	43	A BILL FOR
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49	49	40 ILCS 5/15-112 from Ch. 108 1/2, par. 15-112
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68	68	1 such period, considered equal to the average earnings during
69	69	2 the last 36 months of such service.
70	70	3 (b) This subsection (b) applies to a Tier 2 member.
71	71	4 For an employee who is paid on an hourly basis or who
72	72	5 receives an annual salary in installments during 12 months of
73	73	6 each academic year, the average annual earnings obtained by
74	74	7 dividing by 8 the total earnings of the employee during the 96
75	75	8 consecutive months in which the total earnings were the
76	76	9 highest within the last 120 months prior to termination or the
77	77	10 average annual earnings during the 8 consecutive academic
78	78	11 years of service within the 10 years of service prior to
79	79	12 termination in which the employee's earnings were the highest,
80	80	13 whichever is greater.
81	81	14 For any other employee, the average annual earnings during
82	82	15 the 8 consecutive academic years of service within the 10
83	83	16 years of service prior to termination in which the employee's
84	84	17 earnings were the highest. For an employee with less than 96
85	85	18 consecutive months or 8 consecutive academic years of service,
86	86	19 whichever is necessary, the average earnings during his or her
87	87	20 entire period of service.
88	88	21 The changes made to this subsection (b) by this amendatory
89	89	22 Act of the 104th General Assembly are corrections and
90	90	23 clarifications of existing law and are intended to be
91	91	24 retroactive to January 1, 2011 (the effective date of Public
92	92	25 Act 96-1490), notwithstanding the provisions of Section
93	93	26 1-103.1 of this Code.
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104	104	1 (c) For an employee on leave of absence with pay, or on
105	105	2 leave of absence without pay who makes contributions during
106	106	3 such leave, earnings are assumed to be equal to the basic
107	107	4 compensation on the date the leave began.
108	108	5 (d) For an employee on disability leave, earnings are
109	109	6 assumed to be equal to the basic compensation on the date
110	110	7 disability occurs or the average earnings during the 24 months
111	111	8 immediately preceding the month in which disability occurs,
112	112	9 whichever is greater.
113	113	10 (e) For a Tier 1 member who retires on or after August 22,
114	114	11 1997 (the effective date of Public Act 90-511) this amendatory
115	115	12 Act of 1997 with at least 20 years of service as a firefighter
116	116	13 or police officer under this Article, the final rate of
117	117	14 earnings shall be the annual rate of earnings received by the
118	118	15 participant on his or her last day as a firefighter or police
119	119	16 officer under this Article, if that is greater than the final
120	120	17 rate of earnings as calculated under the other provisions of
121	121	18 this Section.
122	122	19 (f) If a Tier 1 member is an employee for at least 6 months
123	123	20 during the academic year in which his or her employment is
124	124	21 terminated, the annual final rate of earnings shall be 25% of
125	125	22 the sum of (1) the annual basic compensation for that year, and
126	126	23 (2) the amount earned during the 36 months immediately
127	127	24 preceding that year, if this is greater than the final rate of
128	128	25 earnings as calculated under the other provisions of this
129	129	26 Section.
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140	140	1 (g) In the determination of the final rate of earnings for
141	141	2 an employee, that part of an employee's earnings for any
142	142	3 academic year beginning after June 30, 1997, which exceeds the
143	143	4 employee's earnings with that employer for the preceding year
144	144	5 by more than 20% 20 percent shall be excluded; in the event
145	145	6 that an employee has more than one employer this limitation
146	146	7 shall be calculated separately for the earnings with each
147	147	8 employer. In making such calculation, only the basic
148	148	9 compensation of employees shall be considered, without regard
149	149	10 to vacation or overtime or to contracts for summer employment.
150	150	11 Beginning September 1, 2024, this subsection (g) also applies
151	151	12 to an employee who has been employed at 1/2 time or less for 3
152	152	13 or more years.
153	153	14 (h) The following are not considered as earnings in
154	154	15 determining the final rate of earnings: (1) severance or
155	155	16 separation pay, (2) retirement pay, (3) payment for unused
156	156	17 sick leave, and (4) payments from an employer for the period
157	157	18 used in determining the final rate of earnings for any purpose
158	158	19 other than (i) services rendered, (ii) leave of absence or
159	159	20 vacation granted during that period, and (iii) vacation of up
160	160	21 to 56 work days allowed upon termination of employment; except
161	161	22 that, if the benefit has been collectively bargained between
162	162	23 the employer and the recognized collective bargaining agent
163	163	24 pursuant to the Illinois Educational Labor Relations Act,
164	164	25 payment received during a period of up to 2 academic years for
165	165	26 unused sick leave may be considered as earnings in accordance
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176	176	1 with the applicable collective bargaining agreement, subject
177	177	2 to the 20% increase limitation of this Section. Any unused
178	178	3 sick leave considered as earnings under this Section shall not
179	179	4 be taken into account in calculating service credit under
180	180	5 Section 15-113.4.
181	181	6 (i) Intermittent periods of service shall be considered as
182	182	7 consecutive in determining the final rate of earnings.
183	183	8 (Source: P.A. 103-548, eff. 8-11-23; revised 7-18-24.)
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