Summary as Introduced
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.
Staff Analysis
This bill amends multiple articles of the Illinois Pension Code, including the State Universities Article, to clarify how final earnings for Tier 2 members are calculated and to allow survivors to waive benefits under certain conditions. It expands and revises pension rules across various systems, including IMRF, MWRD, and Chicago Teachers, addressing issues like re-employment, service credit transfers, employer contributions, defined contributions, estimated payments, and indemnification of trustees. It also allows the Joliet Regional Port District to join IMRF and adjusts the language around trustee indemnification. Many provisions are effective immediately.