Bill Text: IL HB0299 | 2017-2018 | 100th General Assembly | Engrossed


Bill Title: Amends the State Universities Article of the Illinois Pension Code. In a provision concerning return to work by an affected annuitant, provides that a person who becomes an affected annuitant remains an affected annuitant, except for any period on or after the effective date of the amendatory Act during which an annuitant received an annualized retirement annuity that is less than $10,000. Effective immediately.

Spectrum: Partisan Bill (Democrat 2-0)

Status: (Engrossed) 2017-05-26 - Third Reading - Passed; 054-000-000 [HB0299 Detail]

Download: Illinois-2017-HB0299-Engrossed.html



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1 AN ACT concerning public employee benefits.
2 Be it enacted by the People of the State of Illinois,
3represented in the General Assembly:
4 Section 5. The Illinois Pension Code is amended by changing
5Section 15-139.5 as follows:
6 (40 ILCS 5/15-139.5)
7 Sec. 15-139.5. Return to work by affected annuitant; notice
8and contribution by employer.
9 (a) An employer who employs or re-employs a person
10receiving a retirement annuity from the System in an academic
11year beginning on or after August 1, 2013 must notify the
12System of that employment within 60 days after employing the
13annuitant. The notice must include a summary of the contract of
14employment or specify the rate of compensation and the
15anticipated length of employment of that annuitant. The notice
16must specify whether the annuitant will be compensated from
17federal, corporate, foundation, or trust funds or grants of
18State funds that identify the principal investigator by name.
19The notice must include the employer's determination of whether
20or not the annuitant is an "affected annuitant" as defined in
21subsection (b).
22 The employer must also record, document, and certify to the
23System (i) the amount of compensation paid to the annuitant for

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1employment during the academic year, and (ii) the amount of
2that compensation, if any, that comes from either federal,
3corporate, foundation, or trust funds or grants of State funds
4that identify the principal investigator by name.
5 As used in this Section, "academic year" means the 12-month
6period beginning September 1.
7 For the purposes of this Section, an annuitant whose
8employment by an employer extends over more than one academic
9year shall be deemed to be re-employed by that employer in each
10of those academic years.
11 The System may specify the time, form, and manner of
12providing the determinations, notifications, certifications,
13and documentation required under this Section.
14 (b) A person receiving a retirement annuity from the System
15becomes an "affected annuitant" on the first day of the
16academic year following the academic year in which the
17annuitant first meets the following conditions:
18 (1) (Blank).
19 (2) While receiving a retirement annuity under this
20 Article, the annuitant was employed on or after August 1,
21 2013 by one or more employers under this Article and
22 received or became entitled to receive during an academic
23 year compensation for that employment in excess of 40% of
24 his or her highest annual earnings prior to retirement;
25 except that compensation paid from federal, corporate,
26 foundation, or trust funds or grants of State funds that

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1 identify the principal investigator by name is excluded.
2 (3) The annuitant received an annualized retirement
3 annuity under this Article of at least $10,000.
4 A person who becomes an affected annuitant remains an
5affected annuitant, except for (i) any period during which the
6person returns to active service and does not receive a
7retirement annuity from the System or (ii) any period on or
8after the effective date of this amendatory Act of the 100th
9General Assembly during which an annuitant received an
10annualized retirement annuity under this Article that is less
11than $10,000.
12 (c) It is the obligation of the employer to determine
13whether an annuitant is an affected annuitant before employing
14the annuitant. For that purpose the employer may require the
15annuitant to disclose and document his or her relevant prior
16employment and earnings history. Failure of the employer to
17make this determination correctly and in a timely manner or to
18include this determination with the notification required
19under subsection (a) does not excuse the employer from making
20the contribution required under subsection (e).
21 The System may assist the employer in determining whether a
22person is an affected annuitant. The System shall inform the
23employer if it discovers that the employer's determination is
24inconsistent with the employment and earnings information in
25the System's records.
26 (d) Upon the request of an annuitant, the System shall

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1certify to the annuitant or the employer the following
2information as reported by the employers, as that information
3is indicated in the records of the System: (i) the annuitant's
4highest annual earnings prior to retirement, (ii) the
5compensation paid for that employment in each academic year,
6and (iii) whether any of that employment or compensation has
7been certified to the System as being paid from federal,
8corporate, foundation, or trust funds or grants of State funds
9that identify the principal investigator by name. The System
10shall only be required to certify information that is received
11from the employers.
12 (e) In addition to the requirements of subsection (a), an
13employer who employs an affected annuitant must pay to the
14System an employer contribution in the amount and manner
15provided in this Section, unless the annuitant is compensated
16by that employer solely from federal, corporate, foundation, or
17trust funds or grants of State funds that identify the
18principal investigator by name.
19 The employer contribution required under this Section for
20employment of an affected annuitant in an academic year shall
21be equal to 12 times the amount of the gross monthly retirement
22annuity payable to the annuitant for the month in which the
23first paid day of that employment in that academic year occurs,
24after any reduction in that annuity that may be imposed under
25subsection (b) of Section 15-139.
26 If an affected annuitant is employed by more than one

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1employer in an academic year, the employer contribution
2required under this Section shall be divided among those
3employers in proportion to their respective portions of the
4total compensation paid to the affected annuitant for that
5employment during that academic year.
6 If the System determines that an employer, without
7reasonable justification, has failed to make the determination
8of affected annuitant status correctly and in a timely manner,
9or has failed to notify the System or to correctly document or
10certify to the System any of the information required by this
11Section, and that failure results in a delayed determination by
12the System that a contribution is payable under this Section,
13then the amount of that employer's contribution otherwise
14determined under this Section shall be doubled.
15 The System shall deem a failure to correctly determine the
16annuitant's status to be justified if the employer establishes
17to the System's satisfaction that the employer, after due
18diligence, made an erroneous determination that the annuitant
19was not an affected annuitant due to reasonable reliance on
20false or misleading information provided by the annuitant or
21another employer, or an error in the annuitant's official
22employment or earnings records.
23 (f) Whenever the System determines that an employer is
24liable for a contribution under this Section, it shall so
25notify the employer and certify the amount of the contribution.
26The employer may pay the required contribution without interest

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1at any time within one year after receipt of the certification.
2If the employer fails to pay within that year, then interest
3shall be charged at a rate equal to the System's prescribed
4rate of interest, compounded annually from the 366th day after
5receipt of the certification from the System. Payment must be
6concluded within 2 years after receipt of the certification by
7the employer. If the employer fails to make complete payment,
8including applicable interest, within 2 years, then the System
9may, after giving notice to the employer, certify the
10delinquent amount to the State Comptroller, and the Comptroller
11shall thereupon deduct the certified delinquent amount from
12State funds payable to the employer and pay them instead to the
13System.
14 (g) If an employer is required to make a contribution to
15the System as a result of employing an affected annuitant and
16the annuitant later elects to forgo his or her annuity in that
17same academic year pursuant to subsection (c) of Section
1815-139, then the required contribution by the employer shall be
19waived, and if the contribution has already been paid, it shall
20be refunded to the employer without interest.
21 (h) Notwithstanding any other provision of this Article,
22the employer contribution required under this Section shall not
23be included in the determination of any benefit under this
24Article or any other Article of this Code, regardless of
25whether the annuitant returns to active service, and is in
26addition to any other State or employer contribution required

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1under this Article.
2 (i) Notwithstanding any other provision of this Section to
3the contrary, if an employer employs an affected annuitant in
4order to continue critical operations in the event of either an
5employee's unforeseen illness, accident, or death or a
6catastrophic incident or disaster, then, for one and only one
7academic year, the employer is not required to pay the
8contribution set forth in this Section for that annuitant. The
9employer shall, however, immediately notify the System upon
10employing a person subject to this subsection (i). For the
11purposes of this subsection (i), "critical operations" means
12teaching services, medical services, student welfare services,
13and any other services that are critical to the mission of the
14employer.
15 (j) This Section shall be applied and coordinated with the
16regulatory obligations contained in the State Universities
17Civil Service Act. This Section shall not apply to an annuitant
18if the employer of that annuitant provides documentation to the
19System that (1) the annuitant is employed in a status
20appointment position, as that term is defined in 80 Ill. Adm.
21Code 250.80, and (2) due to obligations contained under the
22State Universities Civil Service Act, the employer does not
23have the ability to limit the earnings or duration of
24employment for the annuitant while employed in the status
25appointment position.
26(Source: P.A. 97-968, eff. 8-16-12; 98-596, eff. 11-19-13;

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198-1144, eff. 6-1-15.)
2 Section 99. Effective date. This Act takes effect upon
3becoming law.
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