TITLE 50: INSURANCE
CHAPTER I: DEPARTMENT OF INSURANCE
SUBCHAPTER aaa: PENSIONS
PART 4402
DEFINITION OF SALARY
SECTION 4402.10 AUTHORITY
Section 4402.10 Authority
This Part is promulgated by the
Director of Insurance of the State of Illinois pursuant to Section 1A-103 of
the Illinois Pension Code [40 ILCS 5/1A-103].
(Source: Amended at 22 Ill. Reg. 15296, effective August 7, 1998)
 | TITLE 50: INSURANCE
CHAPTER I: DEPARTMENT OF INSURANCE
SUBCHAPTER aaa: PENSIONS
PART 4402
DEFINITION OF SALARY
SECTION 4402.20 PURPOSE AND SCOPE
Section 4402.20 Purpose and
Scope
The purpose of this Part is to
define the word "salary" as used in Section 3-125 and 4-124 of the
Illinois Pension Code [40 ILCS 5/3-125 and 4-124] as it applies to pension
funds formed pursuant to Articles 3 and 4 of the Illinois Pension Code.
(Source: Amended at 22 Ill. Reg. 15296, effective August 7, 1998)
| TITLE 50: INSURANCE
CHAPTER I: DEPARTMENT OF INSURANCE
SUBCHAPTER aaa: PENSIONS
PART 4402
DEFINITION OF SALARY
SECTION 4402.30 DEFINITIONS
Section 4402.30 Definitions
Class, for purposes of this Part, means a subset of
individuals in a particular rank (i.e., Patrol versus Administration). Class
may also be signified by the devotion of compensation for education or other
work-related achievements.
Fixed, for purposes of this Part, means a payment in a
predetermined amount which can be determined through an examination of the
appropriation ordinance, plans or agreements establishing salary.
Rank, for purposes of this Part, means the employee's
official position, including but not limited to Civil Service Rank, Ranks
established by the Police or Fire Commission, Detective, Juvenile Officer,
Special Instructor, Shift Commander, Training Officer, Chief, Emergency Medical
Technician (E.M.T.), Paramedic, Range Officer, and Mechanic.
Regular, for purposes of this Part, means a scheduled
payment. The schedule may be annually, quarterly, monthly or any other basis.
Salary, for purposes of this Part, means any fixed
compensation received by an employee of a municipality that participates in one
of the pension funds established under Article 3 or 4 of the Illinois Pension
Code, which has been approved through an appropriations ordinance of the
municipality. Salary is received regularly and is attached to the rank or class
to which the firefighter or police officer is assigned.
(Source: Amended at 20 Ill. Reg. 5838, effective April 9, 1996)
| TITLE 50: INSURANCE
CHAPTER I: DEPARTMENT OF INSURANCE
SUBCHAPTER aaa: PENSIONS
PART 4402
DEFINITION OF SALARY
SECTION 4402.35 SALARY FOR PENSION PURPOSES
Section 4402.35 Salary for
Pension Purposes
All salary, as defined in
Section 4402.30 of this Part, shall be used in pension computations for
purposes of determining the correct amount of employee contributions. The
following types of pay are considered salary, in accordance with the definition
in Section 4402.30:
a) Base Pay
The basic salary attached to rank which is specified in the
bargaining contract, municipal pay plan or any other document which establishes
salary.
b) Education Pay
Additional compensation for attaining certain levels of
academic and professional training, such as an associate or bachelor's degree
or attainment of firefighters certification or firearm certification, or any
other pay given for designated educational achievement.
c) Holiday Pay
Additional compensation paid regardless of whether the
employee must work on the holiday, unless there is an option, such as time off
in lieu of cash compensation.
d) Longevity
Additional pay received after the employee has attained a
specified number of years of service. This pay may be received with regular
salary or in one or more lump sum payments during the year. When paid in a
lump sum, the amount should be prorated to determine the monthly equivalent to
compute all pension contributions and benefits.
e) Overtime Pay
Compensation for time worked beyond the regular work hours,
which is already included in the regular salary attached to that rank or class.
f) Specialty Rank
Compensation for services performed in positions beyond the
basic rank, such as detective, juvenile officer, special instructor, shift
commander, training officer, chief, emergency medical technician, paramedic,
range officer or mechanic.
g) Temporary Pay
Compensation received for temporarily performing the duties
of a higher rank or specialty rank. This is to be considered salary only if
the temporary position has lasted for a continuous period of more than one
year. After temporary pay has been received for one continuous year of service
in that position, the amount is considered attached to rank and then becomes
salary for purposes of pension computation.
(Source: Added at 20 Ill. Reg. 5838, effective April 9, 1996)
| TITLE 50: INSURANCE
CHAPTER I: DEPARTMENT OF INSURANCE
SUBCHAPTER aaa: PENSIONS
PART 4402
DEFINITION OF SALARY
SECTION 4402.40 NON-SALARY COMPENSATION
Section 4402.40 Non-Salary
Compensation
For purposes of calculating
pension contributions and pension benefits, the following categories of pay
shall not be considered compensation:
a) Accumulated Unused Time
Compensation for unused accumulated vacation, sick, or
personal time earned during employment, regardless of whether the compensation
is received during employment or after termination.
b) Awards
Compensation for an extraordinary deed or accomplishment,
which is not recurring in nature.
c) Automobile Allowance
Compensation for the use of the employee's personal
automobile.
d) Food Allowance
Compensation for the purchase of meals while performing the
duties required.
e) Housing Allowance
Compensation received for the purpose of providing housing,
in whole or in part. The method of providing the housing, such as renting or
purchasing, is irrelevant.
f) Merit Pay
Compensation which is neither fixed in amount or determined
by a reviewing bargaining agreement or pay plan, nor added into the salary for
determining future increases.
g) Overtime Pay
Compensation paid for working more than the regular hours
specified in the contract or pay plan.
h) Shift Differential
Compensation for working a second or third shift, in addition
to the salary attached to that rank or class.
i) Temporary Pay
Compensation received for temporarily performing the duties
of a higher rank or specialty rank position shall not be considered salary
unless and until this compensation has been received continually for one full
year.
j) Uniform Allowance
Compensation received as reimbursement or payment for the
purchase of necessary uniforms and equipment for use in the performance of the
required duties. This compensation may be paid as reimbursement or as a fixed
amount, regardless of the actual amount expended.
(Source: Amended at 20 Ill. Reg. 5838, effective April 9, 1996)
| TITLE 50: INSURANCE
CHAPTER I: DEPARTMENT OF INSURANCE
SUBCHAPTER aaa: PENSIONS
PART 4402
DEFINITION OF SALARY
SECTION 4402.50 RETROACTIVE PAY INCREASES
Section 4402.50 Retroactive
Pay Increases
a) Retroactive payments of compensation are treated as if they
were paid during the period for which the increase is computed. If an employee
retired after the effective date of the salary increase and is entitled to
receive retroactive payment of salary, the new salary becomes final salary
attached to the rank at the time of retirement and the salary on which the
service pension is computed.
b) Entitlement to retroactive pay is to be determined by the
contract or agreement which authorizes the salary increase.
(Source: Amended at 20 Ill. Reg. 5838, effective April 9, 1996)
| TITLE 50: INSURANCE
CHAPTER I: DEPARTMENT OF INSURANCE
SUBCHAPTER aaa: PENSIONS
PART 4402
DEFINITION OF SALARY
SECTION 4402.60 ACCUMULATED UNUSED TIME AT RETIREMENT OR DISABILITY
Section 4402.60 Accumulated
Unused Time at Retirement or Disability
a) Whether compensation for accumulated but unused vacation,
sick, personal, or compensation time (any other time earned by the employee,
but unused at the time of termination of employment or retirement) is
considered salary will be determined by the date of retirement or disability.
b) If the employee remains on the payroll and uses the time, the
compensation received for that time will be considered salary for purposes of
computing pension contributions and benefits.
c) If the employee is removed from the payroll by virtue of
leaving employment or being placed on disability leave while accumulated time
remains unused, then the lump sum compensation received by the employee for
that time is not considered salary for purposes of computing pension contributions
and benefits.
d) In the instance where a municipality acts contrary to its
stated policy, then there must be a written agreement between the municipality
and the participant which states that the participant may remain on the payroll
until the entire amount due has been paid, without these payments being
considered salary for purposes of computing pension contributions or benefits.
(Source: Added at 20 Ill. Reg. 5838, effective April 9, 1996)
AUTHORITY: Implementing and authorized by Section 1A-103 of the Illinois Pension Code [40 ILCS 5/1A-103] (see P.A. 90-507, effective August 22, 1997).
SOURCE: Adopted at 3 Ill. Reg. 15, p. 104, effective April 9, 1979; codified at 6 Ill. Reg. 14844; amended at 13 Ill. Reg. 3801, effective March 15, 1989; amended at 20 Ill. Reg. 5838, effective April 9, 1996; Part 6302 recodified to Part 4402 at 21 Ill. Reg. 1727; amended at 22 Ill. Reg. 15296, effective August 7, 1998.
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