Bill > SB1925

This bill amends the Illinois Municipal Retirement Fund (IMRF) Article of the Illinois Pension Code to extend the timeline for how long participating municipalities or instrumentalities have to pay additional contributions for certain earnings increases. Specifically, if an employee's reported earnings for a 12-month period exceed the previous year's earnings by more than 6% or 1.5 times the annual Consumer Price Index-U (whichever is greater), the municipality must pay the present value of the resulting pension increase. Previously, these additional payments had to be concluded within 3 years after receiving the bill from the fund; now, the bill extends this payment period to 7 years. The bill includes several important exceptions to this rule, such as excluding earnings increases from overtime, unused vacation time, promotions, workers' compensation, and certain contractual or legal mandates. The change aims to provide municipalities with more flexibility in managing their pension contribution obligations, giving them a longer timeframe to fulfill these additional financial requirements.

Labor and Employment

https://www.ilga.gov/legislation/BillStatus.asp?DocNum=1925&GAID=18&DocTypeID=SB&SessionID=114&GA=104