The appellate court considered a case of first impression regarding the meaning of “lump sum salary payments,” as described in the Illinois Pension Code. The court considered whether bi-monthly payments made by respondent for accumulated unused vacation and sick time are included as compensation in the calculation of a state employee’s final average compensation used to determine their retirement annuity under section 14-103.12 of the Pension Code or whether they are excluded as “lump sum salary payments” under section 14-108. The court concluded that bi-monthly payments for vacation and accumulated unused sick time are “lump sum salary payments” as installment payments towards a known and definite sum owing and are excluded from the meaning of “compensation” under section 14-108. (HYMAN and C.A. WALKER, concurring)
Illinois Appellate Court
Civil Court
Illinois Pension Code