Bill > SB1895

This bill amends the Illinois Pension Code to modify how final rate of earnings is calculated for Tier 2 members, specifically for employees paid hourly or receiving annual salaries in academic year installments. The bill provides an additional method for calculating average annual earnings, allowing employees to use either the total earnings divided by 8 from the 96 consecutive highest-earning months within the last 120 months prior to termination, or the average annual earnings during the 8 consecutive academic years within the 10 years of service where the employee's earnings were highest, whichever is greater. The bill explicitly states that these changes are intended to be corrections and clarifications of existing law, with retroactive application to January 1, 2011 (the effective date of Public Act 96-1490). This means the bill is essentially clarifying and potentially expanding the previous interpretation of how final rate of earnings should be calculated for certain state university employees, giving them more flexibility in how their pension earnings are determined and potentially allowing some employees to calculate their final rate of earnings using a more advantageous method.

https://www.ilga.gov/legislation/BillStatus.asp?DocNum=1895&GAID=18&DocTypeID=SB&SessionID=114&GA=104