SB1291 Summary

• Amends Illinois Pension Code to exclude severance payments from "compensation" and "earnings" calculations for pension purposes, ensuring severance does not artificially inflate pension benefits.

• Limits severance payments for executive administrators earning over $200,000 at public universities and community colleges to a maximum of 30% of their final rate of earnings without Board of Higher Education approval.

• Requires any severance payment exceeding the 30% cap to be reviewed and approved by the Board of Higher Education (for universities) or Illinois Community College Board (for community colleges) by majority record vote.

• Applies severance payment limitations to all seven public universities (University of Illinois, Southern Illinois University, Chicago State, Eastern Illinois, Governors State, Illinois State, Northeastern Illinois, Northern Illinois, and Western Illinois) and community colleges statewide.

• Takes effect immediately upon becoming law.