HB 3193 (Public Act 104-0284) — Summary
Status and key dates
- Filed: Feb 21, 2025 (Introduced by Rep. Janet Yang Rohr; chief sponsor later changed to Rep. Stephanie A. Kifowit; Sen. Robert F. Martwick as alternate chief sponsor in Senate).
- Passed both houses: May 31, 2025. Sent to Governor: June 24, 2025.
- Governor approved: August 15, 2025. Public Act: 104-0284.
- Effective date: August 15, 2025 (with some provisions effective January 1, 2026 as noted in the Act).
Main purpose / intent
- Corrects and clarifies how the “final rate of earnings” is calculated for Tier 2 members of the State Universities Retirement System (SURS), specifically for employees paid hourly or paid an annual salary in 12 monthly installments during the academic year. The amendment states the change is intended as a correction/clarification and is retroactive to January 1, 2011 (the effective date of Public Act 96‑1490).
Primary change (Section 15-112 — Final rate of earnings)
- For Tier 2 members who are hourly-paid or paid a 12‑month installment salary, the final rate of earnings will be the greater of:
1. The average annual earnings obtained by dividing by 8 the total earnings during the 96 consecutive months in which earnings were highest within the last 120 months prior to termination; OR
2. The average annual earnings during the 8 consecutive academic years of service within the 10 years prior to termination in which the employee's earnings were highest.
- Previously, the statute read only the first of these calculations (divide total earnings over the 96 consecutive months by 8). The amendment adds the alternative 8‑academic‑year measure and makes the provision retroactive to 1/1/2011.
Other notable provisions and amendments included in the enacted Act
- Technical and other pension-code changes were adopted via House and Senate amendments. Highlights include:
- Edits to survivors/general insurance provision language (Section 15-148).
- Changes to re-employment and pension‑cancellation rules for school pensions (Section 17‑149), including temporary re-employment day/compensation limits and special subject‑shortage exceptions (subsections c‑5, c‑6, c‑7, c‑10).
- Minor/technical edits to SURS creation language (Section 15‑101) and indemnification language for trustees/staff/consultants (Section 1‑107).
- Additional municipal/participation language inserted in later amendments (e.g., Section 7‑132 in an Article added by amendment).
Who is affected
- Direct: Tier 2 members of SURS who are paid hourly or who receive annual salary in 12 monthly installments (common among faculty or certain academic employees). These members’ pension calculations (final rate of earnings) may increase if the 8‑academic‑year average yields a higher result.
- Indirect: SURS administration, state universities and employers (administrative recalculation, potential retroactive adjustments), and beneficiaries/survivors if related provisions apply. Teacher‑pension re‑employment rule changes affect TRS retirees and school employers.
Potential impact
- Members: Some Tier 2 members may see higher pension benefits if the new alternative calculation produces a larger final rate. Retroactivity to 2011 could trigger recalculation of past benefit determinations and potential retroactive payments.
- Fiscal: Possible increased pension liabilities for SURS and sponsoring employers depending on how many members benefit from the alternative calculation and the size of retroactive adjustments. Administrative workload to re-evaluate past cases and implement the new/default calculation is expected.
- Operational: SURS and affected employers will need to update calculation procedures and communications to members regarding recalculations and any retroactive payments.
Sponsorship and procedural notes
- Primary sponsor(s): Rep. Stephanie A. Kifowit (House) / Sen. Robert F. Martwick (Senate amendments). Multiple co‑sponsors listed.
- The bill underwent multiple House and Senate amendments (House Amendment, Senate Committee and Floor Amendments 1–4); the General Assembly concurred on amendments prior to enactment.
For full text and statutory placement: see Public Act 104‑0284 and the amended Illinois Pension Code sections (notably 40 ILCS 5/15‑112).
