IL SB3651

Amends Section 7-172 of the Illinois Pension Code to exclude reportable earnings increases resulting from periods where a member was paid through workers' compensation when assessing excess earnings contributions under subsection (k).

Municipalities and participating instrumentalities must pay additional contributions to the fund when an employee's annual reported earnings exceed the previous year's earnings by more than 6% or 1.5 times the Consumer Price Index increase, whichever is greater.

Excludes from excess earnings contribution calculations: overload or overtime earnings, unused vacation time payments in the final 3 months of the final rate period, standard employment promotions, and earnings increases from pre-2012 personnel policies not applied to employees hired after January 1, 2012.

Excess earnings contributions may be paid as a lump sum within 90 days of billing, with interest charged at the fund's assumed annual rate of return if not paid within 90 days; payments must be completed within 3 years of the bill.

Exempts earnings increases from subsection (k) assessment if covered by contracts or collective bargaining agreements entered into before January 1, 2012, or if the employee is 10 or more years from retirement eligibility.