WeVote
Log In

Bill

Bill

SB 1895

PEN CD-SURS-EARNINGS

104th Regular Session Introduced by Rob Martwick

SB 1895 lets some Tier 2 SURS members choose the more favorable final average earnings method for pension calculations, potentially boosting benefits.

0
WeVote Research Nonpartisan
Bill Summary · SB 1895

Summary — SB 1895 (PEN CD‑SURS‑EARNINGS)

Status: Enacted. Governor signed 5/29/2025. Effective date: September 1, 2025.
Statute amended: 40 ILCS 5/15‑112 (State Universities Article — final rate of earnings).

Main purpose

SB 1895 clarifies and modifies how the “final rate of earnings” is calculated for Tier 2 members of the State Universities Retirement System (SURS) who are either paid on an hourly basis or who receive an annual salary paid in monthly installments over 12 months of each academic year. The change gives such employees an alternate (and potentially more favorable) method for determining their average annual earnings used to compute pension benefits.

Key provisions

  • Amends subsection (b) of 40 ILCS 5/15‑112 (final rate of earnings for Tier 2 members).
  • For employees paid hourly or receiving annual salary in 12 monthly installments, the bill provides that the average annual earnings are the greater of:
    • the total earnings during the 96 consecutive months (8 consecutive years) in which the employee’s total earnings were highest within the last 120 months prior to termination divided by 8 (i.e., averaging 8 years), or
    • 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.
  • For other Tier 2 employees, the existing 8-consecutive-academic-year calculation within the 10-year period remains applicable.
  • States that the changes are intended as corrections/clarifications of existing law and are retroactive to January 1, 2011 (the effective date of Public Act 96‑1490).
  • Effective date of the Act: upon becoming law; legislative history shows practical effectiveness set for September 1, 2025.

Who is affected

  • Primary: Tier 2 members of SURS who are paid hourly or who receive annual salaries spread over 12 months of the academic year (commonly certain faculty or staff paid on a 12‑month pay schedule).
  • Secondary: SURS administration and employers required to compute final average earnings under 40 ILCS 5/15‑112.
  • Tier 1 members are governed by separate provisions (subsection (a)) and are not changed by this bill.

Procedural/timeline notes

  • Introduced by Sen. Robert F. Martwick (filed 2/6/2025).
  • Passed both chambers in April–May 2025; enrolled and sent to governor mid‑May; signed by governor 5/29/2025.
  • Effective for calculations and administration beginning September 1, 2025, with retroactive intent to Jan 1, 2011.

Potential impact

  • May increase final average‑earnings calculations (and thus pension benefits) for affected Tier 2 members by allowing selection of the more favorable averaging method.
  • Could increase SURS liabilities and pension expenditures modestly depending on how many members qualify and the difference between the two averaging methods. The bill text contains no fiscal estimate.

Compiled from official sources — confirm details with the bill’s official record.

Sign in to ask a question.