Bill Text: IL HB3408 | 2015-2016 | 99th General Assembly | Engrossed


Bill Title: Amends the State Universities Article of the Illinois Pension Code. Provides that "earnings" does not include amounts associated with housing allowance or vehicle allowance payable to an employee. Effective immediately.

Spectrum: Partisan Bill (Democrat 4-0)

Status: (Engrossed - Dead) 2016-05-13 - Rule 3-9(a) / Re-referred to Assignments [HB3408 Detail]

Download: Illinois-2015-HB3408-Engrossed.html



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1 AN ACT concerning public employee benefits.
2 Be it enacted by the People of the State of Illinois,
3represented in the General Assembly:
4 Section 5. The Illinois Pension Code is amended by changing
5Sections 15-110 and 15-111 and by adding Section 15-111.5 as
6follows:
7 (40 ILCS 5/15-110) (from Ch. 108 1/2, par. 15-110)
8 Sec. 15-110. Basic compensation. "Basic compensation":
9Subject to Section 15-111.5, the The gross basic rate of salary
10or wages payable by an employer, including:
11 (1) the value of maintenance, board, living quarters,
12 personal laundry or other allowances furnished in lieu of
13 salary which are considered gross income under the federal
14 Federal Internal Revenue Code of 1986, as amended; ,
15 (2) the employee contributions required under Section
16 15-157; , and
17 (3) the amount paid by any employer to a custodial
18 account for investment in regulated investment company
19 stocks for the benefit of the employee pursuant to the
20 University Employees Custodial Accounts Act; "An Act in
21 relation to payments to custodial accounts for the benefit
22 of employees of public institutions of higher education",
23 approved September 9, 1983, and

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1 (4) the amount of the premium payable by any employer
2 to an insurance company or companies on an annuity
3 contract, pursuant to the employee's election to accept a
4 reduction in earnings or forego an increase in earnings
5 under Section 30c of the State Finance Act "An Act in
6 relation to State Finance," approved June 10, 1919, as
7 amended, or a tax-sheltered annuity plan approved by any
8 employer; and
9 (5) the amount of any elective deferral to a deferred
10 compensation plan established under Article 24 of this Code
11 pursuant to Section 457(b) of the federal Internal Revenue
12 Code of 1986, as amended.
13 Basic compensation does not include (1) salary or wages for
14overtime or other extra service; (2) prospective salary or
15wages under a summer teaching contract not yet entered upon;
16and (3) overseas differential allowances, quarters allowances,
17post allowances, educational allowances and transportation
18allowances paid by an employer under a contract with the
19federal government or its agencies for services rendered in
20other countries. If an employee elects to receive in lieu of
21cash salary or wages, fringe benefits which are not taxable
22under the federal Federal Internal Revenue Code of 1986, as
23amended, the amount of the cash salary or wages which is waived
24shall be included in determining basic compensation.
25(Source: P.A. 84-1308.)

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1 (40 ILCS 5/15-111) (from Ch. 108 1/2, par. 15-111)
2 (Text of Section WITHOUT the changes made by P.A. 98-599,
3which has been held unconstitutional)
4 Sec. 15-111. Earnings.
5 (a) "Earnings": Subject to Section 15-111.5, an An amount
6paid for personal services equal to the sum of the basic
7compensation plus extra compensation for summer teaching,
8overtime or other extra service. For periods for which an
9employee receives service credit under subsection (c) of
10Section 15-113.1 or Section 15-113.2, earnings are equal to the
11basic compensation on which contributions are paid by the
12employee during such periods. Compensation for employment
13which is irregular, intermittent and temporary shall not be
14considered earnings, unless the participant is also receiving
15earnings from the employer as an employee under Section 15-107.
16 With respect to transition pay paid by the University of
17Illinois to a person who was a participating employee employed
18in the fire department of the University of Illinois's
19Champaign-Urbana campus immediately prior to the elimination
20of that fire department:
21 (1) "Earnings" includes transition pay paid to the
22 employee on or after the effective date of this amendatory
23 Act of the 91st General Assembly.
24 (2) "Earnings" includes transition pay paid to the
25 employee before the effective date of this amendatory Act
26 of the 91st General Assembly only if (i) employee

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1 contributions under Section 15-157 have been withheld from
2 that transition pay or (ii) the employee pays to the System
3 before January 1, 2001 an amount representing employee
4 contributions under Section 15-157 on that transition pay.
5 Employee contributions under item (ii) may be paid in a
6 lump sum, by withholding from additional transition pay
7 accruing before January 1, 2001, or in any other manner
8 approved by the System. Upon payment of the employee
9 contributions on transition pay, the corresponding
10 employer contributions become an obligation of the State.
11 (b) For a Tier 2 member, the annual earnings shall not
12exceed $106,800; however, that amount shall annually
13thereafter be increased by the lesser of (i) 3% of that amount,
14including all previous adjustments, or (ii) one half the annual
15unadjusted percentage increase (but not less than zero) in the
16consumer price index-u for the 12 months ending with the
17September preceding each November 1, including all previous
18adjustments.
19 For the purposes of this Section, "consumer price index u"
20means the index published by the Bureau of Labor Statistics of
21the United States Department of Labor that measures the average
22change in prices of goods and services purchased by all urban
23consumers, United States city average, all items, 1982-84 =
24100. The new amount resulting from each annual adjustment shall
25be determined by the Public Pension Division of the Department
26of Insurance and made available to the boards of the retirement

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1systems and pension funds by November 1 of each year.
2(Source: P.A. 98-92, eff. 7-16-13.)
3 (40 ILCS 5/15-111.5 new)
4 Sec. 15-111.5. Basic compensation and earnings
5restrictions. For an employee who first becomes a participant
6on or after the effective date of this amendatory Act of the
799th General Assembly, basic compensation under Section 15-110
8and earnings under Section 15-111 shall not include housing
9allowances, vehicle allowances, or club memberships dues.
10 Section 99. Effective date. This Act takes effect upon
11becoming law.
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