Bill Text: IL SB2887 | 2013-2014 | 98th General Assembly | Engrossed
NOTE: There are more recent revisions of this legislation. Read Latest Draft
Bill Title: Amends the Illinois Pension Code. Makes a technical change in a Section concerning State universities.
Spectrum: Partisan Bill (Democrat 6-0)
Status: (Passed) 2014-12-30 - Public Act . . . . . . . . . 98-1144 [SB2887 Detail]
Download: Illinois-2013-SB2887-Engrossed.html
Bill Title: Amends the Illinois Pension Code. Makes a technical change in a Section concerning State universities.
Spectrum: Partisan Bill (Democrat 6-0)
Status: (Passed) 2014-12-30 - Public Act . . . . . . . . . 98-1144 [SB2887 Detail]
Download: Illinois-2013-SB2887-Engrossed.html
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1 | AN ACT concerning public employee benefits.
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2 | Be it enacted by the People of the State of Illinois, | ||||||
3 | represented in the General Assembly:
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4 | Section 5. The Illinois Pension Code is amended by changing | ||||||
5 | Section 15-139.5 as follows:
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6 | (40 ILCS 5/15-139.5) | ||||||
7 | Sec. 15-139.5. Return to work by affected annuitant; notice | ||||||
8 | and contribution by employer. | ||||||
9 | (a) An employer who employs or re-employs a person | ||||||
10 | receiving a retirement annuity from the System in an academic | ||||||
11 | year beginning on or after August 1, 2013 must notify the | ||||||
12 | System of that employment within 60 days after employing the | ||||||
13 | annuitant. The notice must include a summary of the contract of | ||||||
14 | employment or specify the rate of compensation and the | ||||||
15 | anticipated length of employment of that annuitant. The notice | ||||||
16 | must specify whether the annuitant will be compensated from | ||||||
17 | federal, corporate, foundation, or trust funds or grants of | ||||||
18 | State funds that identify the principal investigator by name. | ||||||
19 | The notice must include the employer's determination of whether | ||||||
20 | or not the annuitant is an "affected annuitant" as defined in | ||||||
21 | subsection (b). | ||||||
22 | The employer must also record, document, and certify to the | ||||||
23 | System (i) the amount of compensation paid to the annuitant for |
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1 | employment during the academic year, and (ii) the amount of | ||||||
2 | that compensation, if any, that comes from either federal, | ||||||
3 | corporate, foundation, or trust funds or grants of State funds | ||||||
4 | that identify the principal investigator by name. | ||||||
5 | As used in this Section, "academic year" means the 12-month | ||||||
6 | period beginning September 1. | ||||||
7 | For the purposes of this Section, an annuitant whose | ||||||
8 | employment by an employer extends over more than one academic | ||||||
9 | year shall be deemed to be re-employed by that employer in each | ||||||
10 | of those academic years. | ||||||
11 | The System may specify the time, form, and manner of | ||||||
12 | providing the determinations, notifications, certifications, | ||||||
13 | and documentation required under this Section. | ||||||
14 | (b) A person receiving a retirement annuity from the System | ||||||
15 | becomes an "affected annuitant" on the first day of the | ||||||
16 | academic year following the academic year in which the | ||||||
17 | annuitant first meets the following conditions condition : | ||||||
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 | ||||||
5 | affected annuitant, except for any period during which the | ||||||
6 | person returns to active service and does not receive a | ||||||
7 | retirement annuity from the System. | ||||||
8 | (c) It is the obligation of the employer to determine | ||||||
9 | whether an annuitant is an affected annuitant before employing | ||||||
10 | the annuitant. For that purpose the employer may require the | ||||||
11 | annuitant to disclose and document his or her relevant prior | ||||||
12 | employment and earnings history. Failure of the employer to | ||||||
13 | make this determination correctly and in a timely manner or to | ||||||
14 | include this determination with the notification required | ||||||
15 | under subsection (a) does not excuse the employer from making | ||||||
16 | the contribution required under subsection (e). | ||||||
17 | The System may assist the employer in determining whether a | ||||||
18 | person is an affected annuitant. The System shall inform the | ||||||
19 | employer if it discovers that the employer's determination is | ||||||
20 | inconsistent with the employment and earnings information in | ||||||
21 | the System's records. | ||||||
22 | (d) Upon the request of an annuitant, the System shall | ||||||
23 | certify to the annuitant or the employer the following | ||||||
24 | information as reported by the employers, as that information | ||||||
25 | is indicated in the records of the System: (i) the annuitant's | ||||||
26 | highest annual earnings prior
to retirement, (ii) the |
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1 | compensation paid for that employment in each academic year, | ||||||
2 | and (iii) whether any of that employment or compensation has | ||||||
3 | been certified to the System as being paid from federal, | ||||||
4 | corporate, foundation, or trust funds or grants of State funds | ||||||
5 | that identify the principal investigator by name. The System | ||||||
6 | shall only be required to certify information that is received | ||||||
7 | from the employers. | ||||||
8 | (e) In addition to the requirements of subsection (a), an | ||||||
9 | employer who employs an affected annuitant must pay to the | ||||||
10 | System an employer contribution in the amount and manner | ||||||
11 | provided in this Section, unless the annuitant is compensated | ||||||
12 | by that employer solely from federal, corporate, foundation, or | ||||||
13 | trust funds or grants of State funds that identify the | ||||||
14 | principal investigator by name. | ||||||
15 | The employer contribution required under this Section for | ||||||
16 | employment of an affected annuitant in an academic year shall | ||||||
17 | be equal to 12 times the amount of the gross monthly retirement | ||||||
18 | annuity payable to the annuitant for the month in which the | ||||||
19 | first paid day of that employment in that academic year occurs, | ||||||
20 | after any reduction in that annuity that may be imposed under | ||||||
21 | subsection (b) of Section 15-139. | ||||||
22 | If an affected annuitant is employed by more than one | ||||||
23 | employer in an academic year, the employer contribution | ||||||
24 | required under this Section shall be divided among those | ||||||
25 | employers in proportion to their respective portions of the | ||||||
26 | total compensation paid to the affected annuitant for that |
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1 | employment during that academic year. | ||||||
2 | If the System determines that an employer, without | ||||||
3 | reasonable justification, has failed to make the determination | ||||||
4 | of affected annuitant status correctly and in a timely manner, | ||||||
5 | or has failed to notify the System or to correctly document or | ||||||
6 | certify to the System any of the information required by this | ||||||
7 | Section, and that failure results in a delayed determination by | ||||||
8 | the System that a contribution is payable under this Section, | ||||||
9 | then the amount of that employer's contribution otherwise | ||||||
10 | determined under this Section shall be doubled. | ||||||
11 | The System shall deem a failure to correctly determine the | ||||||
12 | annuitant's status to be justified if the employer establishes | ||||||
13 | to the System's satisfaction that the employer, after due | ||||||
14 | diligence, made an erroneous determination that the annuitant | ||||||
15 | was not an affected annuitant due to reasonable reliance on | ||||||
16 | false or misleading information provided by the annuitant or | ||||||
17 | another employer, or an error in the annuitant's official | ||||||
18 | employment or earnings records. | ||||||
19 | (f) Whenever the System determines that an employer is | ||||||
20 | liable for a contribution under this Section, it shall so | ||||||
21 | notify the employer and certify the amount of the contribution. | ||||||
22 | The employer may pay the required contribution without interest | ||||||
23 | at any time within one year after receipt of the certification. | ||||||
24 | If the employer fails to pay within that year, then interest | ||||||
25 | shall be charged at a rate equal to the System's prescribed | ||||||
26 | rate of interest, compounded annually from the 366th day after |
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1 | receipt of the certification from the System. Payment must be | ||||||
2 | concluded within 2 years after receipt of the certification by | ||||||
3 | the employer. If the employer fails to make complete payment, | ||||||
4 | including applicable interest, within 2 years, then the System | ||||||
5 | may, after giving notice to the employer, certify the | ||||||
6 | delinquent amount to the State Comptroller, and the Comptroller | ||||||
7 | shall thereupon deduct the certified delinquent amount from | ||||||
8 | State funds payable to the employer and pay them instead to the | ||||||
9 | System. | ||||||
10 | (g) If an employer is required to make a contribution to | ||||||
11 | the System as a result of employing an affected annuitant and | ||||||
12 | the annuitant later elects to forgo his or her annuity in that | ||||||
13 | same academic year pursuant to subsection (c) of Section | ||||||
14 | 15-139, then the required contribution by the employer shall be | ||||||
15 | waived, and if the contribution has already been paid, it shall | ||||||
16 | be refunded to the employer without interest. | ||||||
17 | (h) Notwithstanding any other provision of this Article, | ||||||
18 | the employer contribution required under this Section shall not | ||||||
19 | be included in the determination of any benefit under this | ||||||
20 | Article or any other Article of this Code, regardless of | ||||||
21 | whether the annuitant returns to active service, and is in | ||||||
22 | addition to any other State or employer contribution required | ||||||
23 | under this Article. | ||||||
24 | (i) Notwithstanding any other provision of this Section to | ||||||
25 | the contrary, if an employer employs an affected annuitant in | ||||||
26 | order to continue critical operations in the event of either an |
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1 | employee's unforeseen illness, accident, or death or a | ||||||
2 | catastrophic incident or disaster, then, for one and only one | ||||||
3 | academic year, the employer is not required to pay the | ||||||
4 | contribution set forth in this Section for that annuitant. The | ||||||
5 | employer shall, however, immediately notify the System upon | ||||||
6 | employing a person subject to this subsection (i). For the | ||||||
7 | purposes of this subsection (i), "critical operations" means | ||||||
8 | teaching services, medical services, student welfare services, | ||||||
9 | and any other services that are critical to the mission of the | ||||||
10 | employer.
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