Legislature Proposes "Local Government Wage Increase Transparency Act"
Ancel Glink's sister blog, The Workplace Report, just reported on a bill that is of interest to all Illinois governments who participate in the Illinois Municipal Retirement Fund (IMRF).
House Bill 5684, entitled the "The Local Government Wage Increase
Transparency Act," just passed both the Illinois Senate and House, and has gone to the Governor for signature. If this bill becomes law, it will prohibit certain wage increases or lump sum payments to a local government employee during the employee's last 12 months of employment (where the employee has notified the employer of his or her intent to leave) unless the increase or payment is disclosed and approved at a public meeting of the employer governing body.
The bill only applies to employees who began participating in IMRF prior to January 1, 2011 and who are not part of a collective bargaining unit. The trigger for the new disclosure requirement is any increase or payment within the final 12 months of employment that makes the reportable monthly earnings 6% or more than the previous months reportable earnings.
At the open meeting, the government body must disclose, at a minimum, the following about the "disclosable payment":
1. the identity of the employee;
2. the purpose and amount of the increase or payment;
3. the proposed retirement date;
4. the effect of the payment on the expected retirement annuity of the employee; and
5. the effect of the payment on the liability of the employer to the IMRF fund.
The bill also would amend the Open Meeting Act to exclude compensation
discussions from closed session if the compensation falls under the Local
Government Wage Increase Transparency Act.
Post Authored by Julie Tappendorf
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