Bill Text: IL HB3193 | 2025-2026 | 104th General Assembly | Introduced

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Bill Title: 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.

Spectrum: Partisan Bill (Democrat 1-0)

Status: (Introduced) 2025-02-18 - Referred to Rules Committee [HB3193 Detail]

Download: Illinois-2025-HB3193-Introduced.html

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104TH GENERAL ASSEMBLY State of Illinois 2025 and 2026 HB3193 Introduced , by Rep. Janet Yang Rohr 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 06092 RPS 16125 b
A BILL FOR
HB3193 LRB104 06092 RPS 16125 b
AN ACT concerning public employee benefits.
Be it enacted by the People of the State of Illinois,
represented in the General Assembly:
Section 5. The Illinois Pension Code is amended by
changing Section 15-112 as follows:
(40 ILCS 5/15-112) (from Ch. 108 1/2, par. 15-112)
Sec. 15-112. Final rate of earnings. "Final rate of
earnings":
(a) This subsection (a) applies only to a Tier 1 member.
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 during the 48
consecutive calendar month period ending with the last day of
final termination of employment or the 4 consecutive academic
years of service in which the employee's earnings were the
highest, whichever is greater. For any other employee, the
average annual earnings during the 4 consecutive academic
years of service in which his or her earnings were the highest.
For an employee with less than 48 months or 4 consecutive
academic years of service, the average earnings during his or
her entire period of service. The earnings of an employee with
more than 36 months of service under item (a) of Section
15-113.1 prior to the date of becoming a participant are, for

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such period, considered equal to the average earnings during
the last 36 months of such service.
(b) This subsection (b) applies to a Tier 2 member.
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 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.
For any other employee, 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. For an employee with less than 96
consecutive months or 8 consecutive academic years of service,
whichever is necessary, the average earnings during his or her
entire period of service.
The changes made to this subsection (b) by this amendatory
Act of the 104th General Assembly 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), notwithstanding the provisions of Section
1-103.1 of this Code.

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(c) For an employee on leave of absence with pay, or on
leave of absence without pay who makes contributions during
such leave, earnings are assumed to be equal to the basic
compensation on the date the leave began.
(d) For an employee on disability leave, earnings are
assumed to be equal to the basic compensation on the date
disability occurs or the average earnings during the 24 months
immediately preceding the month in which disability occurs,
whichever is greater.
(e) For a Tier 1 member who retires on or after August 22,
1997 (the effective date of Public Act 90-511) this amendatory
Act of 1997 with at least 20 years of service as a firefighter
or police officer under this Article, the final rate of
earnings shall be the annual rate of earnings received by the
participant on his or her last day as a firefighter or police
officer under this Article, if that is greater than the final
rate of earnings as calculated under the other provisions of
this Section.
(f) If a Tier 1 member is an employee for at least 6 months
during the academic year in which his or her employment is
terminated, the annual final rate of earnings shall be 25% of
the sum of (1) the annual basic compensation for that year, and
(2) the amount earned during the 36 months immediately
preceding that year, if this is greater than the final rate of
earnings as calculated under the other provisions of this
Section.

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(g) In the determination of the final rate of earnings for
an employee, that part of an employee's earnings for any
academic year beginning after June 30, 1997, which exceeds the
employee's earnings with that employer for the preceding year
by more than 20% 20 percent shall be excluded; in the event
that an employee has more than one employer this limitation
shall be calculated separately for the earnings with each
employer. In making such calculation, only the basic
compensation of employees shall be considered, without regard
to vacation or overtime or to contracts for summer employment.
Beginning September 1, 2024, this subsection (g) also applies
to an employee who has been employed at 1/2 time or less for 3
or more years.
(h) The following are not considered as earnings in
determining the final rate of earnings: (1) severance or
separation pay, (2) retirement pay, (3) payment for unused
sick leave, and (4) payments from an employer for the period
used in determining the final rate of earnings for any purpose
other than (i) services rendered, (ii) leave of absence or
vacation granted during that period, and (iii) vacation of up
to 56 work days allowed upon termination of employment; except
that, if the benefit has been collectively bargained between
the employer and the recognized collective bargaining agent
pursuant to the Illinois Educational Labor Relations Act,
payment received during a period of up to 2 academic years for
unused sick leave may be considered as earnings in accordance

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with the applicable collective bargaining agreement, subject
to the 20% increase limitation of this Section. Any unused
sick leave considered as earnings under this Section shall not
be taken into account in calculating service credit under
Section 15-113.4.
(i) Intermittent periods of service shall be considered as
consecutive in determining the final rate of earnings.
(Source: P.A. 103-548, eff. 8-11-23; revised 7-18-24.)
Section 99. Effective date. This Act takes effect upon
becoming law.