What is the impact of the 20% rule on the 6% calculation?
Current state statute (40 ILCS 5/15-112) provides: “…. In the determination of the final rate of earnings for an employee, that part of an employee’s earnings for any academic year beginning after June 30, 1997, which exceeds the employee’s earnings with that employer for the preceding year by more than 20 percent shall be excluded; in the event that an employee has more than one employer this limitation shall be calculated separately for the earnings with each employer. In making such calculation, only the basic compensation of employees shall be considered, without regard to vacation or overtime or to contracts for summer employment.” Subject to confirmation by SURS, the 20% statute represents a maximum liability or assessment which the University would be subject to in a given year. For example, if an employee is given a 30% increase, SURS would expect the employer to pay liabilities associated with the amount above 6% but less than 20% (as earnings above 20% are not included in t
