IL HB3408

Amends the Illinois Pension Code to exclude housing allowances, vehicle allowances, and club membership dues from basic compensation and earnings calculations for employees who first become participants on or after the effective date of this act.

Modifies Section 15-110 to add a reference to new Section 15-111.5 and restructures the definition of basic compensation to include five specific categories: maintenance allowances, employee contributions, custodial account payments, annuity contract premiums, and elective deferrals to deferred compensation plans.

Modifies Section 15-111 to add a reference to new Section 15-111.5 regarding the definition of earnings for all employees.

Creates new Section 15-111.5 to establish restrictions on what counts as basic compensation and earnings for new participants, specifically excluding housing allowances, vehicle allowances, and club membership dues.

Takes effect upon becoming law.