AUTHORITY: Implementing and authorized by Sections 234, 235, 239, 245, 401, 402, 500.1, 600, 605, 606, 610, 611, 1300, 1700 and 1701 of the Unemployment Insurance Act [820 ILCS 405].

SOURCE: Adopted at 11 Ill. Reg. 1853, effective January 7, 1987; amended at 12 Ill. Reg. 16066, effective September 23, 1988; amended at 13 Ill. Reg. 1773, effective January 27, 1989; amended at 13 Ill. Reg. 5936, effective April 18, 1989; emergency amendments at 13 Ill. Reg. 11899, effective July 1, 1989, for a maximum of 150 days; emergency amendments to 56 Ill. Adm. Code 2920.5 and 2920.75, expired November 28, 1989; amended at 13 Ill. Reg. 17402, effective October 30, 1989; amended at 15 Ill. Reg. 180, effective December 28, 1990; amended at 15 Ill. Reg. 11416, effective July 30, 1991; amended at 18 Ill. Reg. 4166, effective March 3, 1994; amended at 21 Ill. Reg. 567, effective January 1, 1997; emergency amendment at 25 Ill. Reg. 10226, effective August 7, 2001, for a maximum of 150 days; amended at 25 Ill. Reg. 15415, effective November 15, 2001; amended at 29 Ill. Reg. 1935, effective January 24, 2005; amended at 30 Ill. Reg. 2357, effective January 31, 2006; emergency amendment at 35 Ill. Reg. 2801, effective January 30, 2011, for a maximum of 150 days; amended at 35 Ill. Reg. 8467, effective May 20, 2011; amended at 43 Ill. Reg. 6563, effective May 14, 2019; amended at 45 Ill. Reg. 10834, effective August 23, 2021.

SUBPART A: GENERAL PROVISIONS

 

Section 2920.1  Definitions

 

"Act" means the Unemployment Insurance Act [820 ILCS 405].

 

"Employer" shall have the meaning ascribed in Section 205 of the Act.

 

"Employing unit" shall have the same meaning as provided in Section 204 of the Act.

 

"Full-time work" refers to the number of hours or days a class of workers would work if the employing unit had all the business it could handle without overtime.  Except when the contrary is provided by a collective bargaining agreement or company policy, full time work is customarily 40 hours per week.

 

"Layoff" occurs when work is no longer available for the individual for a definite or indefinite period of time, but there is no intention to permanently sever the employer-employee relationship.

 

"Normal workday" is a day during which work is ordinarily performed at the worker's customary place of employment.

 

"Pay in lieu of vacation" refers to amounts paid to an employee in addition to regular wages whenever the employee works instead of taking the period of vacation to which the individual is entitled.

 

"Residual payments" are amounts paid to a performer for the continued use of radio and television commercials in which he or she performed.

 

"Separation" refers to the situation that exists when an employee has:

 

Voluntarily terminated employment;

 

Been permanently discharged from employment by the employer; or

 

Been indefinitely suspended from employment by the employer on grounds other than lack of work at the place of employment.

 

"Services performed by an individual in self-employment" means those services that would be excluded from covered employment under Section 212 of the Act.

 

"Shutdown for inventory purposes" occurs whenever the employer suspends all or a unit of its operations for an announced period in order to count or to inspect the property in the employer's possession.

 

"Shutdown for vacation purposes" occurs whenever the employer suspends all, or a unit of, its operations for an announced period in order to grant its employees a period of rest and recreation, conduct maintenance or re-tooling operations, or for any reason except lack of business.

 

"Standby pay" refers to amounts paid or payable to an employee either for an employee's readiness to perform services for an employer or amounts paid or payable to an employee for the purpose of maintaining the employer-employee relationship during any work cessation not related to a labor dispute in which the individual is directly involved.

 

"Vacation pay" refers to amounts paid or payable to an employee for the purpose of granting him or her a period of rest and recreation.  The term "vacation pay" includes what is commonly referred to as "personal holiday" pay, "earned bonus hours", and other amounts payable for the purpose of rest and recreation regardless of how they are characterized.

 

"Vacation pay allowance" refers to amounts paid or payable to an employee as vacation pay without regard to the period of vacation leave to which the employee is entitled.  For example, an employee may be entitled to two weeks of vacation leave but be paid an allowance that is greater or less than the wages for two weeks of normal work.  Thus, if any employee was entitled to receive a vacation pay allowance equal to 5% of his or her annual salary of $20,000, the employee's vacation pay allowance would be $1,000.

 

"Wages for less than full time work" refers to every form of remuneration for personal services, including salaries, commissions, bonuses, gratuities received from third parties that are reported as wages under Section 234 of the Act, and the reasonable money value of all remuneration in any medium other than cash received by an individual for less than full time work.

 

"Weekly benefit amount" means the amount defined by Section 401 of the Act.

 

(Source:  Amended at 43 Ill. Reg. 6563, effective May 14, 2019)

 

Section 2920.5  Ineligibility To Receive Benefits Due To Performing Full-Time Work Or Due To The Receipt Of Various Income Whose Sum Is Equal To Or Greater Than The Individual's Weekly Benefit Amount

 

a)         An individual shall be ineligible for benefits with respect to any week for which the individual receives or is entitled to receive any of the following payments whose aggregate amount is equal to or exceeds such individual's weekly benefit amount:

 

1)         Payments made during an announced shutdown for inventory or vacation purposes which are treated as wages under Section 2920.25;

 

2)         Payments made in connection with any separation or layoff as, or in the nature of, vacation pay, vacation pay allowance, or pay in lieu of vacation treated as wages under Section 2920.30 which are made during a period designated by the employer;

 

3)         Holiday pay treated as wages under Section 2920.35;

 

4)         Wages for services performed by an individual for any week of less than full time work except those wages for "services performed by an individual in self-employment" as defined by Section 2920.1.

 

A)        Example 1:  An individual files for benefits after a layoff and the weekly benefit amount is $130.00.  The individual is eligible to receive 3 days of vacation pay at $50.00 per day during the week in question, an amount which would be treated as wages under Section 2920.25.  The individual is ineligible to receive benefits or waiting week credit under this subsection with respect to that week because the entitlement to $150.00 in vacation pay treated as wages under Section 2920.25 exceeds the weekly benefit amount.

 

B)        Example 2:  An individual files for benefits after a layoff.  The weekly benefit amount is $130.00.  The individual performs services which are not employment under Section 212 of the Act.  Even if the individual receives or is entitled to receive payments for these services in amounts in excess of the weekly benefit amount, the individual is not ineligible for benefits under this subsection because the services performed by the individual were in self-employment and hence the remuneration received for these services does not render the individual ineligible for benefits under subsection (a)(4).  The individual may, however, be ineligible under Section 500 of the Act, if he is not able to, available for, or actively seeking work.

 

C)        Example 3:  An individual files for benefits after a layoff.  The weekly benefit amount is $130.00.  With respect to the week in question, the individual is entitled to receive 1 day of holiday pay of $50.00 per day, an amount which would be treated as wages under Section 2920.35, and 2 days of vacation pay at $50.00 per day, an amount which would be treated as wages under Section 2920.30.  The individual is ineligible to receive benefits during that week under this subsection because the entitlement to the sum of $150.00 in holiday and vacation pay exceeds the weekly benefit amount.

 

D)        Example 4:  An individual files for benefits after a layoff.  The weekly benefit amount is $130.00.  The individual is entitled to receive $100.00 in vacation pay treated as wages under Section 2920.30 for that week and also receives $50.00 in wages for services performed in employment during that week.  The individual's services are for less than full-time work.  The individual is ineligible for benefits for that week under this subsection because the entitlement to $100.00 in vacation pay plus the receipt of $50.00 in wages for performing services for less than full-time work equals $150.00, an amount which exceeds the weekly benefit amount.

 

b)         In addition to the ineligibility for benefits imposed by the provisions of subsection (a), an individual shall be ineligible for benefits with respect to any week in which he performs full-time work regardless of whether the amount of wages received during that week equal or exceed the weekly benefit amount because the individual is not unemployed as required by Section 239 of the Act.

 

            Example:  An individual receives $137.00 in wages for performing services in full-time work.  His weekly benefit amount is $150.00.  The individual is ineligible for benefits under subsection (b) even though the wages are less than his weekly benefit amount because such individual is performing full-time work.  The individual would also not be eligible for reduced benefits under Sections 2920.10 and 2920.15.

 

c)         An individual shall be ineligible for benefits with respect to any week or weeks for which such individual receives any of the following payments whose aggregate amount is equal to or exceeds his weekly benefit amount.  Mere entitlement to such payments shall not render the individual ineligible under this subsection.

 

1)         Disqualifying retirement pay under Section 2920.70.

 

            Example:  An individual receives a weekly pension of $200.00, all of which is disqualifying under Section 2920.70.  The individual's weekly benefit amount is $130.00.  The individual is ineligible to receive benefits under this subsection because the receipt of $200.00 in disqualifying retirement pay exceeds his weekly benefit amount.

 

2)         Workers' compensation paid for temporary disability arising out of or in connection with employment under the laws of Illinois, of another state, or of the United States, as defined by Section 606 of the Act.

 

d)         In addition to the ineligibility for benefits imposed by the provisions of subsections (a), (b), and (c), an individual shall be ineligible for benefits with respect to any week or weeks in which the aggregate amount of any payments treated as wages referred to in subsections (a)(1), (2) and (3), plus any of the disqualifying payments referred to in subsection (c), is equal to or exceeds such individual's weekly benefit amount.

 

1)         Example 1:  An individual receives workers' compensation payments of $60 per week for temporary disability, and the disability does not render the individual unable to or unavailable for work.  The individual is also entitled to receive two days of vacation pay at $50 per day with respect to that week.  The individual's vacation pay is treated as wages under Section 2920.30.  The individual's weekly benefit amount is $130.  This individual is ineligible for benefits under subsection (d) because the aggregate amount of the disqualifying payments for that week ($60 + $100 = $160) exceeds his weekly benefit amount.

 

2)         Example 2:  An individual receives $60.00 per week of retirement pay all of which is disqualifying under Section 2920.70 and is also entitled to receive 1 day of vacation pay at $50 per day treated as wages under Section 2920.30 with respect to that week.  The individual also receives $65 in wages for performing less than full-time work during that week.  The individual's weekly benefit amount is $130.  Since the aggregate of his disqualifying retirement pay and his vacation pay ($60 + $50 = $110) is less than the individual's weekly benefit amount of $130, the individual is not ineligible for benefits under this subsection.  Amounts paid or payable to an individual as wages for performing services for less than full-time work referred to in subsection (a)(4) do not make the individual ineligible to receive benefits in this situation because, when added to the individual's vacation pay, they do not exceed the individual's weekly benefit amount as required by subsection (a).  Rather these amounts reduce the individual's benefits in accordance with the formula given in Section 2920.10.  Similarly, since the individual's receipt of $60 in retirement pay is disqualifying but is not considered wages under Section 611 of the Act, these amounts reduce the individual's benefits in accordance with the formula given in Section 2920.10, but do not make the individual entirely ineligible to receive any benefits under this subsection.

 

3)         Example 3:  An individual wins a lottery prize of $1000.  Since lottery prizes are not awarded for services performed by the individual for an employer, this amount would not constitute disqualifying income under this Section.

 

Section 2920.10  Reduction in Benefits Due to Receipt of Vacation Pay, Holiday Pay, Retirement Pay, and Workers' Compensation Whose Sum is Less Than the Individual's Weekly Benefit Amount

 

Provided that an individual is not ineligible for benefits under Section 2920.5, whenever an individual receives or is entitled to receive any vacation pay treated as wages under Section 2920.25 or 2920.30, holiday pay treated as wages under Section 2920.35 or receives any disqualifying retirement pay under Section 2920.70 or workers' compensation during a week or weeks, and the aggregate amount of those payments is less than the individual's weekly benefit amount, the individual shall be eligible to receive with respect to that week or those weeks, benefits in an amount equal to the weekly benefit amount reduced by the sum of these payments.  The reduction in benefits given by this Section does not apply when the individual receives wages for less than full-time work as defined by Section 2920.5(a)(4).  In those cases, the individual's eligibility and amount of reduced benefits, if any, shall be calculated in accordance with the formula in Section 2920.15.

 

a)         EXAMPLE:  An individual received $60 in disqualifying retirement pay per week.  He also receives $60 in vacation pay with respect to that week.  If the weekly benefit amount was $130, he would be eligible to receive $10 in reduced benefits with respect to that week.

 

b)         EXAMPLE:  Assume the situation described in EXAMPLE in subsection (a) with the exception that the individual's disqualifying retirement pay with respect to that week is $70 instead of $60.  Because the sum of the individual's retirement pay and his vacation pay equals his weekly benefit amount, the individual is ineligible to receive reduced benefits under this Section because he is ineligible to receive any benefits under Section 2920.5(d).

 

(Source:  Amended at 43 Ill. Reg. 6563, effective May 14, 2019)

 

Section 2920.15  Reduction In Benefits Due To Receipt Of Wages For Less Than Full-Time Work

 

a)         Whenever an individual receives or is entitled to receive an amount of wages for less than full-time work as defined by Section 2920.5(a)(4) with respect to a week which is less than the individual's weekly benefit amount and does not receive any other disqualifying payment referred to by Section 2920.10, the individual shall be eligible to receive with respect to such week, benefits equal to the individual's weekly benefit amount reduced by that part of the wages for less than full-time work, if any, which are in excess of 50% of the individual's weekly benefit amount.  Whenever benefits reduced under this section do not constitute a multiple of $1.00, the reduced benefit amount shall be raised to the next higher multiple of $1.00.

 

1)         Example 1:

 

A)	If the individual's weekly benefit amount is..........................	$130.00
B)	50% of that amount is............................................................	$  65.00
C)	If the individual's wages for less than full-time work under Section 2920.5(a)(4) are.........................................................	$  86.00
D)	The amount by which the wages given in line 3 exceed 50% of the individual's weekly benefit amount given in line 2 is...............................................................................	$  21.00
E)	The difference between the individual's weekly benefit amount given in line 1 ...........................................................	$130.00
	and the amount given in line 4...............................................	$  21.00
	is.............................................................................................	$109.00
	The amount of $109.00 represents the reduced benefits the individual is eligible to receive for that week under this subsection.

 

2)         Example 2:

 

A)	If the individual's weekly benefit amount is..........................	$130.00
B)	50% of that amount is............................................................	$  65.00
C)	If the individual's wages for less than full-time work under Section 2920.5(a)(4) are.........................................................	$  65.00
D)	Because the individual's wages given in line 3 do not exceed 50% of the individual's weekly benefit amount given in line 2, the difference between the amount given in line 3 and the amount given in line 2 is...................	$         0
E)	The difference between the individual's weekly benefit amount given in line 1 ...........................................................	$130.00
	and the amount given in line 4...............................................	$      .00
	is.............................................................................................	$130.00
	The amount of $130.00 represents the benefits which the individual is eligible to receive for that week under this subsection.

 

b)         Provided that an individual is not ineligible for benefits under Section 2920.5, whenever an individual receives wages for less than full-time work as defined by Section 2920.5(4) and, in addition to these wages, also receives any of the disqualifying payments referred to by Section 2920.10, the reduced weekly benefit amount calculated according to the formula given by subsection (a) with respect to that week shall be further reduced by the sum of such additional disqualifying payment, provided, however, that if the sum of these additional disqualifying payments plus that part of the wages for less than full-time work referred to by Section 2920.5(a)(4) which is in excess of 50% of the individual's weekly benefit amount is greater than or equal to the individual's weekly benefit amount, the individual shall be ineligible for any benefits.

 

1)         Example 1:

 

A)	If the individual's weekly benefit amount is..........................	$130.00
B)	50% of that amount is............................................................	$  65.00
C)	If the individual's wages for less than full-time work under Section 2920.5(a)(4) are.........................................................	$  75.50
D)	The amount by which the wages given in line exceed 50% of the individual's weekly benefit amount given in line  is.................................................................................	$  10.50
E)	The difference between the individual's weekly benefit amount given in line 1 ...........................................................	$130.00
	and the amount given in line 4...............................................	$  10.50
	is.............................................................................................	$119.50
F)	Since the amount given in line 5 is not a multiple of $1, it is raised to the next higher multiple of $1.................................	$120.00
G)	Amount of any vacation pay treated as wages which the individual receives with respect to that week is.....................	$  40.00
H)	The difference between the amount of reduced benefits the individual would be eligible to receive with respect to that week given in line 6...............................................................	$120.00
	and the amount of vacation pay treated as wages with respect to that week given in 7...............................................	-$  40.00
	is.............................................................................................	$  80.00
	The amount of $80.00 represents the reduced benefits the individual is eligible to receive under this subsection.

 

2)         Example 2: 

 

A)	If the individual's weekly benefit amount is..........................	$150.00
B)	50% of that amount is............................................................	$  75.00
C)	If the individual's wages for less than full-time work under Section 2920.5(a)(4) are.........................................................	$  82.00
D)	The amount by which the wages given in line 3 exceed 50% of the individual's weekly benefit amount given in line 4 is...............................................................................	$    7.00
E)	The difference between the individual's weekly benefit amount given in line 1 ...........................................................	$150.00
	and the amount given in line 4...............................................	$    7.00
	is.............................................................................................	$143.00
F)	Amount of any vacation pay treated as wages which the individual receives with respect to that week is.....................	$  40.00
G)	Amount of disqualifying retirement pay which the individual receives during that week is..................................	$  60.00
H)	The difference between the amount of reduced benefits the individual would be eligible to receive with respect to that week given in line 5...............................................................	$143.00
	and the sum of vacation ........................................................	-  40.00
	and the retirement pay with respect to that week given in lines 6 and 7...........................................................................	-  60.00
	is.............................................................................................	$  43.00
	The amount of $43.00 represents the reduced benefits which the individual is entitled to receive under this subsection.

 

3)         Example 3:  Assume the facts as in Example 2 with the exception that the individual's wages for less than full-time work under Section 2920.5(a)(4) are $120.00 instead of $82.00.  Since the sum of his wages for less than full-time work plus the individual's vacation pay equals $160.00 which is greater than the individual's weekly benefit amount of $150.00, the individual is ineligible to receive any reduced benefits under this Section because of the ineligibility provisions of Section 2920.5(a).

 

4)         Example 4:  Assume the same facts as in Example 2 with the exception that the individual's retirement pay is $105.00.  The individual's wages for less than full-time work is $82.00, the individual's vacation pay is $40.00, and the individual's weekly benefit amount is $150.00.  Although the sum of the individual's wages for less than full-time work and the vacation pay ($82.00 + $40.00 = $122.00) is less than the individual's weekly benefit amount ($150.00) and hence does not make the individual ineligible for benefits as in Example 3 and although the sum of the vacation pay and the retirement pay ($40.00 + $105.00 = $145.00) is also less than the individual's weekly benefit amount, the individual is nonetheless ineligible for benefits under subsection (b) because the sum of the vacation pay and retirement pay ($40.00 + $105.00= $145.00) plus that part of the wages for less than full-time work which is in excess of 50% of the individual's weekly benefit amount ($82.00 - $75.00 = $7.00) is greater than the individual's weekly benefit amount ($145.00 + $7.00 = $152.00).

 

Section 2920.18  Voluntary Withholding for Federal and/or State of Illinois Income Tax

 

a)         Whenever an individual voluntarily elects, under Section 1300 of the Act, to have monies withheld from his or her unemployment insurance benefits to cover possible federal and/or State of Illinois income tax liability, the amount of benefits subject to income tax withholding is the sum of the individual's weekly benefit amount (WBA), following any of the mandatory deductions from unemployment benefits set forth in this subsection (a), plus any spouse or dependent allowance payable under the Act.  The following are the mandatory deductions:

 

1)         Disqualifying income, including vacation pay, holiday pay, retirement pay, and workers' compensation, under Section 2920.10;

 

2)         Wages for less than full time work payable to him or her with respect to that week that are in excess of 50% of his or her weekly benefit amount;

 

3)         One-fifth of the individual's WBA for each day that the individual was unable or unavailable for work as required by Section 402 of the Act.

 

b)         Whenever an individual has voluntarily elected, under Section 1300 of the Act, to have monies withheld for federal and/or State income tax from his or her unemployment benefits for a period covered by a benefit payment, the Department shall, when withholding for federal income tax, withhold 10% of the amount of benefits that are subject to withholding under subsection (a), rounded (if not already a multiple of one dollar) to the nearest dollar and, when withholding for State income tax, withhold a percentage of the amount of benefits that are subject to withholding under subsection (a) equal to the tax rate for individuals pursuant to the Illinois Income Tax Act [35 ILCS 5], rounded (if not already a multiple of one dollar) to the nearest dollar.  If the product is equally near 2 multiples of one dollar, it shall be rounded to the higher multiple of one dollar.  If the individual's benefits for a week, less amounts subject to recoupment under Section 2835.15 and less any involuntary deductions for child support pursuant to Section 2815.105, are less than the amount that would otherwise be withheld pursuant to this subsection, the entire amount of the benefits remaining shall be withheld.  If the individual elects to have both federal and State income taxes withheld and the amount remaining is insufficient to cover both taxes, the entire amount of State tax shall be withheld before any federal tax is withheld.

 

1)         EXAMPLE:  The individual elects both federal and State income tax withholding.  The individual's WBA for each of the weeks ending February 5, 2011, and February 12, 2011, is $251.  The individual receives a dependents' allowance of $81 for each week.  The Department will deduct for federal income tax withholding 10% of $332 for each week that equals $33.20, which, rounded to the nearest dollar, is $33. Additionally, the Department will deduct for State income tax withholding 5% (the tax rate for individuals pursuant to the Illinois Income Tax Act for the 2 weeks in question) of $332, which equals $16.60 for each week, which rounded to the nearest dollar, is $17.  Accordingly, the individual will receive $564 in benefits for the 2 week period after having $66 deducted for federal income tax withholding and $34 deducted for State income tax withholding.

 

2)         EXAMPLE:  The individual elects both federal and State income tax withholding.  The individual's WBA for each of the weeks ending February 5, 2011 and February 12, 2011 is $129.  The individual receives a dependents' allowance of $42 for each week.

 

For the first week of the payment period, the individual has $90 in disqualifying vacation pay, but in the second week the individual does not have any disqualifying vacation pay.

 

The amount of benefits subject to federal and State income tax withholding for the first week is $129 less $90 in vacation pay, which equals $39 plus his or her dependents' allowance of $42, which totals $81.  Because the individual did not receive any disqualifying vacation pay for the second week of the period, the amount of benefits subject to federal and State income tax withholding attributable to the second week is $129 plus his or her dependents' allowance of $42, which totals $171.

 

The Department will deduct for federal income tax withholding 10% of $81 for the first week, which equals $8.10, which, rounded to the nearest dollar, is $8.  The Department will deduct for State income tax withholding 5% (the tax rate for individuals pursuant to the Illinois Income Tax Act for the 2 weeks in question) of $81, which equals $4.05, which, rounded to the nearest dollar, is $4.

 

The individual will receive $69 for the first week after having $8 deducted for federal income tax withholding and $4 deducted for State income tax withholding. The Department will deduct for federal income tax withholding 10% of $171 for the second week, which equals $17.10, which, rounded to the nearest dollar, is $17. 

 

The Department will deduct for State income tax withholding 5% of $171, which equals $8.55, which, rounded to the nearest dollar, is $9.  The individual will receive $145 for the second week after having $17 deducted for federal income tax withholding and $9 deducted for State income tax withholding.  The individual's payment for the two week period will be $214.

 

3)         EXAMPLE:  The individual's WBA for each of the weeks ending February 5, 2011 and February 12, 2011 is $129.  The amount of benefits subject to federal and State income tax withholding for each week of the two week period is $129.

 

10% of $129 equals $12.90, which, rounded to the nearest dollar, is $13. 5% of $129 equals $6.45, which, rounded to the nearest dollar, is $6.

 

In this example, assume that the individual has elected both federal and State income tax withholding, that the individual is also subject to recoupment for both weeks in an amount up to 25% of his or her WBA, which amount is $32.25 for both weeks, and that the individual is subject to a withholding order of $100 for child support for the first week.

 

For the first week, the Department will first recoup the entire amount of $32.25 due for that first week.  $129 minus $32.25 equals $96.75.  Because the individual does not have sufficient benefits to cover the full amount of child support due for that first week, the Department will deduct $96.75, the amount of benefits available for that week.  The individual's payment for the two week period will not include any benefits with respect to that first week.

 

For the second week of the payment period, the individual is not subject to a withholding order for child support.  Accordingly, the individual is eligible to receive $96.75 for the second week, the difference between the benefits payable to him or her for that week ($129) and the amount recouped ($32.25). Because the individual has elected both federal and State income tax withholding for the period covered by the payment, the Department will deduct $13 for federal income tax withholding and $6 for State income tax withholding from the individual's benefits and pay the individual the remaining $77.75.

 

4)         EXAMPLE:  Assume the same situation described in subsection (b)(3), except that the individual's withholding for court ordered child support is $90 for each week.  The amount of benefits subject to federal and State income tax withholding for the two week period remains the same.

 

The individual has sufficient benefits for the Department to recoup the maximum amount and to deduct for child support in full for both weeks.  If the individual had not elected to withhold federal and State income tax, the individual would have received $13.50, the sum of $6.75 and $6.75 for each week.  Because the individual has elected federal and State income tax withholding for this period and because the benefits for the period after recoupment and child support are less than 10% plus 5% of the amount subject to withholding, the Department will deduct the entire $13.50 for income tax withholding ($12 for State income tax withholding ($6 in each week) and the remaining $1.50 for federal income tax withholding ($.75 in each week)) and not pay the individual any benefits for this period.

 

c)         An individual's election and his or her revocation of his or her election to have monies withheld from his or her benefits for possible federal and/or State income tax liability shall be prospective only.  Any decision made by the Department as to whether an individual has, under the Act, elected withholding or revoked a withholding election shall constitute a final administrative decision, subject to review under the Administrative Review Law [735 ILCS 5/Art. III].

 

EXAMPLE:  Upon filing an additional claim during his or her benefit year, an individual elects to have federal and State income tax withheld from his or her unemployment benefits paid in 2006.  His or her first benefit check covers the two-week period beginning January 8, 2006 and ending January 21, 2006.  His or her WBA is $250, and the amount subject to withholding for the period is $65 (10% and 3% of $500).  For each week, he or she is subject to recoupment of 25% of his or her WBA and a withholding order of $100 for child support.  Consequently, his or her benefit check for the two-week period is for $110.  When he or she receives his or her benefit check, he or she asks to revoke the elections, explaining he or she thought the income tax withholding would be based on a percentage of his or her WBA after recoupment and child support.  While the Department, if he or she desires, will revoke his or her elections to withhold with respect to a period that has not yet ended, it will not retroactively revoke his or her elections with respect to January 8 through January 21.  Elections and revocations can only operate prospectively.

 

(Source:  Amended at 43 Ill. Reg. 6563, effective May 14, 2019)

 

Section 2920.20  Reduced Benefits:  Payment Of Dependents' Allowance Or Spouse's Allowance

 

An individual who is eligible to receive reduced benefits with respect to any week under the provisions of Section 2920.10 or Section 2920.15 shall, in addition to such benefits, be eligible to receive the full amount of any dependents' or spouse's allowance to which such individual may be entitled under Section 401 of the Act.

 

a)         Example 1:  An individual is eligible to receive $84.00 in reduced benefits with respect to a particular week under the provisions of Section 2920.10 and a dependents' allowance of $30.00.  Since the individual is eligible for reduced benefits, such individual is also entitled to receive $30.00 in dependents' allowance for that week.

 

b)         Example 2:  An individual receives $140.00 in payments with respect to a week treated as wages or otherwise disqualifying under Section 2920.5. The individual's weekly benefit amount is $130.00.  Since such individual is ineligible to receive any benefits, such individual is not entitled to receive any dependents' or spouse's allowance.

 

Section 2920.25  Payments Made During Shutdown For Inventory Or Vacation Purposes

 

a)         Amounts that an employer pays or holds himself liable to pay an individual as vacation pay or allowance, or as pay in lieu of vacation, or as standby pay during an announced period of shutdown for inventory or vacation purposes shall be treated as wages in amounts equal to the individual's wages for a normal work day defined in Section 2920.1.  Such amounts treated as wages under this Section shall be attributed to, or deemed to be payable to the individual with respect to, the first and each subsequent work day in such period, except paid holidays, until the amount so paid or owing is exhausted.  If a paid holiday occurs during the announced shutdown period, this period shall be extended by such paid holiday.

 

b)         An employer shall announce the period of shutdown for inventory or vacation purposes by posting a notice at the place of employment or by giving other reasonable notice to its employees and the collective bargaining representative, if any, of the period during which the place of employment will be shut down for vacation or inventory.  Such notice must be given at least 2 working days prior to the commencement of the shutdown.

 

c)         An employer's announced purpose of the shutdown may be disputed by evidence showing that the shutdown was for purposes other than vacation or inventory.  In such case, a determination will be made after a full investigation with respect to the disputed issue, taking into consideration the reasonableness of the period of the announced shutdown, the vacation period prevailing in the industry, the bargaining agreement, if any, and the length of previous shutdowns for vacation or inventory purposes.  If it is shown that the shutdown was for purposes other than vacation or inventory, then the amounts that an employer pays or holds himself liable to pay an individual as vacation pay or allowance, or as pay in lieu of vacation, or as standby pay shall not be treated as wages under this Section.  Amounts which do not qualify as wages under this Section may qualify as wages under Section 2920.30, because they are made in connection with a separation or layoff.

 

d)         In deciding whether amounts paid or payable to the individual shall be treated as vacation pay under this Section, the actual amount of vacation leave available to the individual at the time of the shutdown is not material.

 

e)         The fact that the period of announced shutdown for vacation or inventory purposes covered under this Section is preceded or followed by a layoff due to lack of work or a period of vacation or holiday covered under Sections 2920.30 or 2920.35 does not affect the treatment of the payments received under this Section.  The existence of the situations described in subsections (d) and (e) might be relevant evidence, however, in deciding whether the announced shutdown was truly for vacation or inventory purposes under subsection (c).

 

1)         Example 1:  The employer announced a one week shutdown for inventory purposes on June 1, effective for the week beginning June 20.  The individual was laid off for lack of work on May 3.  If the employer's payments to the individual for the week beginning June 20, otherwise satisfy the requirements of this Section, the fact that the announced period of shutdown for inventory purposes follows a period of layoff due to lack of work does not affect the status of those payments as wages under this subsection.

 

2)         Example 2:  Assume the same situation given in the preceding example except for the additional fact that the individual is able to introduce evidence that the shutdown for the week beginning June 20, was not intended for inventory purposes but rather was scheduled because of lack of work.  In this situation, the provisions of subsection (c) control in deciding whether the employer's payments to the individual are treated as wages under this Section.

 

Section 2920.30  Payments Made in Connection with Separation or Layoff as, or in the  Nature of Vacation Pay, Vacation Pay Allowance or as Pay in Lieu of Vacation

 

a)         In situations other than those described in Section 2920.25, amounts that an employer pays, becomes obligated to pay, or holds itself ready to pay the individual as, or in the nature of vacation pay, or vacation pay allowance, or as pay in lieu of vacation shall be treated as wages provided that all of the following conditions are satisfied:

 

1)         The amounts are paid or payable "in connection with" the separation or layoff of the individual.  Amounts are paid or payable "in connection with" the separation or layoff of the individual for the purposes of this Section whenever there is a relationship between such payments and the separation or layoff.  Evidence of a relationship is provided by the employer's pay plan or by the labor-management agreement.

 

A)        EXAMPLE:  The individual is entitled to receive two weeks of vacation pay on the anniversary date of employment that occurs on June 1. The employer is required to make payment for that date.  The individual along with other employees is laid off for an indefinite period beginning June 1.  The individual files for benefits for the week beginning on June 1 and the employer files a timely protest contending under Section 610(B) of the Act that its liability to pay the individual's two weeks of vacation pay renders the individual ineligible to receive benefits with respect to that two week period.  The individual is not ineligible to receive benefits under this subsection because the employer's liability to make those vacation payments is not "in connection with" the layoff.  No relationship exists between the employer's liability to make vacation payments and the individual's layoff.  The connection that does exist is purely fortuitous.

 

B)        EXAMPLE:  Under the terms of the labor-management agreement, the individual is entitled to receive two weeks of vacation pay on June 1.  The labor-management agreement also provides that in the event of any layoff or separation, that occurs prior to June 1, the employer's liability for accrued vacation pay shall be accelerated to the period immediately subsequent to the effective date of the individual's layoff or separation. The individual, along with other employees, is laid off for an indefinite period beginning May 15.  If the protest is timely, the individual is ineligible to receive benefits under this subsection with respect to the two week period beginning May 15, because the employer's liability to make vacation allowance payments is "in connection with" the individual's layoff.  The labor-management agreement regarding the acceleration of vacation payments is conditioned upon the individual's layoff or separation.  The occurrence of the layoff on May 15 fulfills this condition. Accordingly, a connection exists between the employer's liability to make accelerated vacation payments and the layoff of the individual, a connection that is not merely fortuitous, unlike the situation described in the EXAMPLE in subsection (a)(1)(A).

 

2)         Within 10 calendar days after the date the notice of the filing of an individual's claim for benefits is mailed or within 10 calendar days after the date vacation pay is paid or payable, the employer notifies the Director by returning the Notice of Claim form (ADJ030F)  or submitting a letter in lieu thereof which:

 

A)        Designates the period for which the payments shall be allocated; and,

 

B)        Specifies the amount of vacation pay allocated to the designated period.

 

EXAMPLE:  The individual is laid off on June 1.  Under the employer's pay plan, the individual receives hisvacation pay two weeks after his last day of work.  The notice of the filing of the individual's claim for benefits is mailed on June 4.  The individual's vacation pay is received June 15.  The employer files an ADJ030F on June 20.  Although the ADJ030F was not filed within 10 calendar days after the mailing of the notice of the individual's claim for benefits, it is still timely under this subsection (a)(2) because it was filed within 10 calendar days after the date the individual's vacation pay was paid.

 

3)         There must be a reasonable relationship between the period of vacation designated by the employer and the amount of vacation pay allocated to that period.  The relationship shall be considered reasonable if:

 

A)        The period designated by the employer immediately follows the last day worked by the individual;

 

B)        The period designated by the employer immediately follows the date of the individual's claim for benefits;

 

C)        It is usual and customary as a matter of company policy for the vacation payments to accrue during the period designated, even when the period does not immediately follow the last day worked; or

 

D)        The allocation of vacation payments to the period designated is pursuant to a collective bargaining agreement with the employer.

 

b)         Amounts that an employer pays, becomes obligated to pay, or holds itself ready to pay the individual as, or in the nature of vacation pay, or vacation pay allowance, or as pay in lieu of vacation which constitute wages under subsection (a) shall be treated as wages in sums equal to the individual's wages for a normal workday.  The amounts treated as wages under this Section shall be attributed to, or deemed to be payable to the individual with respect to, the first and each subsequent workday in that period, except paid holidays, until the amount so paid or owing is exhausted.  An employer's allocation of those amounts in a manner different from that set forth in this subsection shall be ineffective.  If an individual is entitled to receive and does receive pay for a holiday for any work day in that period designated by the employer under subsection (a)(2), the period shall be extended by the paid holiday.

 

c)         If the employer fails to comply with the conditions set forth in subsection (a), amounts paid or payable to an employee during a period of vacation shall not be treated as wages with respect to any week after the separation or layoff unless these payments shall satisfy the requirements for vacation pay during shutdown for inventory or vacation purposes treated as wages under Section 2920.25.

 

(Source:  Amended at 43 Ill. Reg. 6563, effective May 14, 2019)

 

Section 2920.35  Holiday Pay

 

a)         Amounts which an individual is entitled to receive and receives for a holiday shall be treated as wages.

 

b)         For the purposes of this Section, a holiday is defined as a day of public commemoration or celebration during which the employee performs no services pursuant to the employer's pay plan or labor-management agreement.  A holiday is not limited to official legal holidays.

 

c)         Unless the labor-management agreement or employer's pay plan stipulates otherwise, such holiday pay shall be attributed to, or deemed to be payable with respect to, the week in which the holiday occurs or is celebrated.  The date on which such pay is received does not affect its allocation to the week in which the holiday occurs or is celebrated.

 

d)         Unless the labor-management agreement stipulates otherwise, whenever the holiday falls within:

 

1)         An announced vacation or inventory period as provided by Section 2920.25; or,

 

2)         A designated vacation period in connection with a separation or layoff as provided by Section 2920.30;

 

an individual who receives holiday pay shall be deemed to have received wages for a normal work day on the day the holiday occurs or is celebrated.

 

Example:  For the week ending November 14, an individual is entitled to 5 days of vacation pay and 1 day holiday pay for Veterans Day which occurs on November 11.  The vacation pay for 4 days and the holiday for November 11 shall be deducted from the benefit week ending November 14.  The vacation period, however, is extended to the next week by one day. Vacation pay for the day shall be deducted in full from the benefits for the week ending November 21.

 

Section 2920.40  Payments In Lieu Of Notice Of Separation Or Layoff

 

a)         Wages

 

1)         Amounts paid or payable by an employing unit to an individual in lieu of notice of separation or layoff, except for payments related to an employer's violation of the Illinois Worker Adjustment and Retraining Notification Act [820 ILCS 65] or the federal Worker Adjustment and Retraining Notification Act (29 USC 2101 et seq.), shall be treated as wages with respect to the period of notice, provided that the following conditions are met:

 

A)        There must be an employment agreement or a uniformly applied company policy that requires that the employing unit give the employee a definite period of notice before a layoff or separation;

 

B)        The employee must be laid off or separated without the required notice; and

 

C)        The employing unit must pay the employee a sum equal to his regular wages, or an amount computed in accordance with a formula based on the employee's past earnings, for the required period of the notice.

 

2)         If the amounts treated as wages in lieu of notice with respect to a week pursuant to this subsection (a) exceed the individual's weekly benefit amount, the individual shall be ineligible to receive benefits with respect to that week.

 

b)         Service Payments.  Amounts paid or payable by an employing unit to an individual in lieu of notice of separation or layoff that do not satisfy the conditions set forth in subsection (a) shall be treated as severance pay described in Section 2920.45 except for payments that qualify as vacation pay in connection with a layoff or separation, as provided in Section 2920.30 and are not related to an employer's violation of the Illinois Worker Adjustment and Retraining Notification Act or the federal Worker Adjustment and Retraining Notification Act.

 

(Source:  Amended at 29 Ill. Reg. 1935, effective January 24, 2005)

 

Section 2920.45  Severance Pay

 

a)         Amounts paid or payable to an individual for past services rendered by the individual to an employer or amounts paid or payable to an individual for pension or seniority rights lost upon separation or layoff shall be considered severance pay.  Such pay shall not be considered wages payable or attributable with respect to the period subsequent to the individual's separation or layoff.  Amounts paid or payable to the individual as severance pay shall not render the individual ineligible to receive benefits under Section 2920.5.  The nature and purpose of such payments, rather than their characterization, shall determine whether or not such payments are considered severance pay under this Section.

 

b)         For the purpose of this Section, the status of payments as severance pay is not altered by the fact that:

 

1)         Such payments are voluntary; or that,

 

2)         Such payments are made periodically rather than in the form of a lump sum.

 

A)        Example 1:  An employer's separation pay program provides for a lump sum payment based on the length of service.  The purpose of the payment is to allow the individual to maintain his standard of living while he seeks other work.  The individual performs no services after his date of separation.  This lump sum payment constitutes severance pay under this Section and hence is not disqualifying.

 

B)        Example 2:  The individual was notified that he was to be terminated from employment on April 17.  The individual worked on the employer's premises until April 6 but performed incidental services to the employer from April 6 through April 17 by telephone in training a replacement.  The wages received from April 6 through April 17 are not severance pay.  Because the individual performed some services and received wages for the period April 6 through April 17, he was not unemployed under Section 239 of the Act and hence not eligible for benefits under the Act.

 

Section 2920.48  Residual Payments

 

Residual payments constitute remuneration for personal services and, therefore, must be deducted from unemployment insurance benefits as provided in Section 402 of the Act.  However, residual payments are attributable only to the weeks in which the personal services were actually performed and, therefore, are deductible only from those weeks.

 

Example:  During the week ending March 2, 1991, an individual performs in a commercial.  This commercial is scheduled to air on television every Friday from March 8, 1991 until May 24, 1991.  As compensation for his performance, the individual will receive residual payments every time that the commercial is aired.  These residual payments constitute remuneration for personal services for the week ending March 2, 1991 only.  If this individual claims unemployment insurance benefits for that week, the residual payments shall be deducted from his benefits as provided in Section 402 of the Act.

 

(Source:  Added at 15 Ill. Reg. 11416, effective July 30, 1991)

 

Section 2920.50  Back Pay Awards

 

a)         An individual who receives a "back pay award" as a result of a decision by the National Labor Relations Board, a court of law, any other governmental agency, in accordance with the employer's grievance procedure, if any, or in voluntary settlement of any back pay dispute is considered to have received wages for services under the Act and hence is ineligible for benefits during any week of the period covered by the back pay award in which the amount of the back pay award equals or exceeds the individual's weekly benefit amount.  If the amount of back pay attributable to any week covered by the back pay award is less than the individual's weekly benefit amount, the individual may be eligible for reduced benefits under Section 2920.10.

 

b)         Whenever an individual's back pay award is accompanied by any additional amounts awarded as a penalty, those amounts are not considered wages and do not affect an individual's eligibility for benefits under this Part.

 

(Source:  Amended at 43 Ill. Reg. 6563, effective May 14, 2019)

 

Section 2920.55  Receipt Of Or Filing For Unemployment Insurance Benefits Under The Laws Of Another State, Canada, Or The United States

 

a)         An individual shall be ineligible to receive benefits with respect to any week or weeks for which such individual received unemployment insurance benefits under the laws of the United States, another state, or Canada.

 

b)         Subject to subsection (c), an individual shall also be ineligible to receive benefits with respect to any week or weeks for which such individual is seeking unemployment insurance benefits under the laws of the United States, another state, or Canada.

 

c)         An individual who is ineligible for benefits under subsection (b) becomes eligible to receive benefits with respect to any week or weeks for which such individual has sought benefits under the laws of the United States, another state, or Canada once the unemployment insurance administration agency of the United States, another state, or Canada where the individual's claim for benefits was filed makes a final determination that the individual is not entitled to receive unemployment insurance benefits under their laws.

 

Section 2920.60  Supplemental Unemployment Benefits (SUB Pay)

 

Supplemental unemployment benefits paid or payable to individuals laid off by an employer under a plan intended to augment unemployment insurance benefits received under the Act shall not render the individual to whom such supplemental benefits are paid or payable ineligible to receive benefits, provided that all of the following conditions are satisfied:

 

a)         The individual is otherwise eligible to receive benefits under the Act; and,

 

b)         Payment of supplemental benefits is made under a trust agreement or other contractual plan which grants the individual a vested right to receive these supplemental payments once the conditions set forth in the trust agreement or contractual plan have been satisfied; and,

 

c)         The trust agreement or plan treats each individual of a class of employees similarly.

 

Section 2920.65  Retirement Pay

 

a)         For the purposes of this Part, retirement pay is defined as any pension, annuity, or other similar payment made to an individual:

 

1)         That is either paid or could have been paid on a periodic basis on account of the individual's separation from an employing unit; and

 

2)         Under a plan maintained or contributed to by an organization or individual for whom the individual performed services during his or her base period or for which the organization or individual, including those that have elected to make payments in lieu of paying contributions, is chargeable for any benefit payments made to the individual, pursuant to Section 1502.1 of the Act.

 

b)         Nothing in this Section shall prohibit payments from a plan maintained and operated by a union from constituting retirement pay provided that those payments otherwise satisfy the requirements of subsection (a).

 

c)         A lump sum payment to an individual on account of his or her separation from an employing unit shall constitute retirement pay, as defined by this Section, if this lump sum payment could have been paid on a periodic basis at the option of the individual; provided, however, that the individual's receipt of the a lump sum payment also satisfies the requirements of subsection (a)(2).

 

EXAMPLE:  A lump sum payment made to an individual on account of his separation shall not constitute retirement pay under this Section when the individual did not have the option to receive those payments on a periodic basis.  It should be noted, however, that under Section 2920.70(c), the lump sum payments shall be considered disqualifying income with respect to the week in which they are paid.

 

(Source:  Amended at 43 Ill. Reg. 6563, effective May 14, 2019)

 

Section 2920.66  Payments To An Election Judge

 

The compensation paid to an election judge by a Board of Elections constitutes remuneration for personal services and, therefore, must be deducted from unemployment insurance benefits as provided in Section 402 of the Act, and service as an election judge also constitutes bona fide work for the purpose of Section 607 of the Act.

 

(Source:  Added at 15 Ill. Reg. 11416, effective July 30, 1991)

 

Section 2920.68  Payments by a Labor Union

 

a)         Payments made by a labor union to an individual for picketing at an employing unit's place of business or for conducting negotiations on behalf of the labor union are wages under Section 234 of the Act because the individual is performing a service for the labor union.

 

EXAMPLE:  A labor union is engaged in a labor dispute with a certain employer.  Because this particular union represents only a small portion of the employer's total work force and because of the vast size of the employer's facility, it is not possible for the union's own members to set up a meaningful picket line at this facility.  For this reason, the union hires non-members to assist in picketing the facility.  Their remuneration constitutes wages under Section 234 of the Act.  However, the union does not pay its own members for picketing; instead, they receive what is called "strike pay".  However, this is money that is available to members to sustain them during the labor dispute and is not tied to the amount of time that they spend on the picket line.  This money is not wages under Section 234 of the Act.

 

b)         Strike benefits or welfare fund payments made to members of a labor union during a labor dispute in order to sustain the members during the period of the dispute are not wages as they are not payments for services performed for the labor union.

 

(Source:  Amended at 43 Ill. Reg. 6563, effective May 14, 2019)

 

Section 2920.69  Jury Service

 

a)         Compensation paid for mandatory jury service (see 56 Ill. Adm. Code 2732.210) is not remuneration for personal services and, therefore, shall not constitute wages for the purpose of Section 402 of the Act nor shall mandatory jury service constitute bona fide work for the purpose of Section 607 of the Act.

 

b)         Compensation paid for voluntary jury service, such as for a Coroner's jury, is remuneration for personal services and, therefore, does constitute wages for the purpose of Section 402 of the Act.  Such voluntary service also constitutes bona fide work for the purpose of Section 607 of the Act.

 

(Source:  Added at 15 Ill. Reg. 11416, effective July 30, 1991)

 

Section 2920.70  Retirement Pay Considered Disqualifying Income

 

a)         The entire amount of payments made to an individual constituting retirement pay under Section 2920.65 shall be considered disqualifying income if:

 

1)         These payments are from any individual or organization that has paid all of the cost of the individual's retirement pay and:

 

A)        for which the individual performed services during his or her base period or

 

B)        that is chargeable under Section 1502.1 of the Act, including those organizations that have elected to make payments in lieu of paying contributions, for any benefit payments made to the individual; or,

 

2)         These payments are from a trust, annuity or insurance fund or under an annuity or insurance contract where all the premiums or contributions were paid by any individual or organization:

 

A)        for which the individual performed services during his or her base period or

 

B)        that is chargeable under Section 1502.1 of the Act, including those organizations that have elected to make payments in lieu of paying contributions, for any benefit payments made to the individual.

 

b)         One-half of payments made to an individual constituting retirement pay under Section 2920.65 shall be considered disqualifying income if the individual or organization referenced in subsection (a) has paid some, but not all, of the cost of the individual's retirement pay or some but not all of the premiums or contributions paid to the trust, annuity or insurance fund or for the annuity or insurance contract.

 

1)         EXAMPLE:  Payments from independent pension plans established and funded entirely by the individual, such as individual retirement accounts (IRA) or Keough plans, are not disqualifying within the meaning of this Section because the employer pays no part of the cost of the IRA or Keough plan.

 

2)         EXAMPLE:  The individual contributes to a retirement plan at a fixed rate of 25%.  The employing unit contributes the remaining 75%.  Since part of the total contributions to the plan is provided by the employer, 50% of each retirement payment is disqualifying income.

 

3)         EXAMPLE:  The individual and the employing unit make variable contributions to a retirement plan.  However, upon maturity of the plan, the individual has contributed 40% of all of the contributions and the employing unit has contributed the remaining 60%.  Since part of the total contributions to the retirement plan is provided by the employer, 50% of each retirement payment is disqualifying income.

 

4)         EXAMPLE:  The individual belongs to a retirement plan maintained and operated by the union.  The employer contributes 60% of the cost of maintaining and operating the plan, the union contributes 5%, and the individual contributes the remaining 35%.  Since part of the total contributions to the retirement payment is provided by the employer, 50% of each retirement payment is disqualifying income.

 

c)         Notwithstanding subsections (a) and (b), lump sum payments made on account of retirement that the individual had no option to receive on a periodic basis, or those lump sum payments that the individual had an option to receive on a periodic basis but of which the employer fails to notify the Director as required under Section 2920.75(d), shall be considered disqualifying income under this Section with respect to the week in which they are paid.

 

d)         For purposes of subsections (a) and (b), the successor to an individual or organization is considered to be the individual or organization.

 

(Source:  Amended at 43 Ill. Reg. 6563, effective May 14, 2019)

 

Section 2920.75  Allocation Of Retirement Pay

 

a)         Whenever an individual has received or will receive amounts as retirement pay as defined by Section 2920.65 for a half month period, an amount shall be deemed to have been paid the individual for each day equal to one-fifteenth of such amounts.

 

b)         Whenever an individual has received or will receive amounts as retirement pay as defined by Section 2920.65 for a one month period, an amount shall be deemed to have been paid the individual for each day equal to one-thirtieth of such amounts.

 

c)         Whenever an individual has received or will receive amounts as retirement pay as defined by Section 2920.65 for any other period, an amount shall be deemed to have been paid the individual for each day in the period equal to the amounts of retirement pay divided by the number of days in the period.

 

d)         Whenever an individual has received or will receive a lump sum amount which constitutes retirement pay under Section 2920.65, and if the retirement pay could have been received on a periodic basis at the option of the individual, an amount shall be deemed to have been paid the individual for each day in the period for which a periodic payment could have been received, provided that the employer has satisfied the notice requirement of this subsection.  The amount deemed to have been paid shall be allocated in accordance with the formulas in subsections (a), (b) or (c) above, as appropriate. Within 10 calendar days after notification of the filing of the individual's claim for benefits, the employer must designate by notice to the Director the periodic basis on which the individual could have received the retirement pay, the amount that the individual could have received each period and the duration for which periodic payments could have been made.  Failure to so notify the Director shall result in such lump sum payment being treated as disqualifying only for the week in which it was paid under Section 2920.70(c).

 

Example 1:  An individual retires from Company A.  In accordance with the company's retirement plan, the individual has the option to receive a lump sum payment of $300,000.00 or a monthly annuity of $3,000.00 for the rest of his life. The individual chooses to receive the lump sum.  The individual then files a claim for benefits.  If the company notifies the Director within 10 calendar days after notification of the individual's claim for benefits, designating the periodic basis on which the individual could have received retirement payments, the amount the individual could have received each period, and the duration for which the individual could have received the periodic payments, the individual's $300,000.00 lump sum retirement payment will be deemed to have been received in monthly installments of $3,000.00 and will be allocated in accordance with subsection (b).

 

Example 2:  The same situation as that given in the preceding example except that the company fails to notify the Director within 10 calendar days after notification of the individual's claim for benefits of the individual's option to receive periodic retirement payments.  The company's failure to give such notice results in the individual's receipt of the lump sum retirement payment being treated as disqualifying only for the week in which it was paid.

 

(Source:  Amended at 18 Ill. Reg. 4166, effective March 3, 1994)

 

Section 2920.80  Miscellaneous Forms of Retirement Pay

 

a)         On the basis of the definitions and principles concerning retirement pay set out in Sections 2920.65 and 2920.70, an individual's receipt of payments from the following sources shall be considered 100% disqualifying income:

 

1)         All profit sharing plans funded entirely by the individual or organization for whom the individual performed services that constitute retirement pay under Section 2920.65;

 

2)         All federal military service pensions if the United States military service paid wages to the individual during his or her base period;

 

3)         All pensions under the Railroad Retirement Act of 1974 (45 USC 231-231t) if an organization covered under that Act paid wages to the individual during his or her base period.

 

b)         On the basis of the definitions and principles relating to retirement pay set out in Sections 2920.65 and 2920.70, an individual's receipt of payments from the following sources shall be considered 50% disqualifying income:

 

1)         Federal civilian employment pensions if the individual was paid for federal civilian services during his base period;

 

2)         All State or local government retirement or disability pensions if the individual performed services during his or her base period for the State or the local governmental entity that funded the pension, or if the State or the local governmental entity is chargeable under Section 1502.1 of the Act, including an entity that has elected to make payments, in lieu of paying contributions, for any benefit payments made to the individual.

 

c)         On the basis of the definitions and principles concerning retirement pay set out in Sections 2920.65 and 2920.70, an individual's receipt of payments from the following sources shall not be considered disqualifying income:

 

1)         An independent pension or retirement plan that was fully paid for by the individual;

 

2)         Social Security benefits payable to a surviving spouse or dependent, not attributable to the previous work of the surviving spouse or dependent;

 

3)         Veterans Administration compensation payments that are not federal military service pensions;

 

4)         Any federal (military service or civilian employment) disability payments if they are not part of a retirement plan;

 

5)         Payments from IRA and Keough Accounts;

 

6)         A pension or retirement plan funded by an individual or organization, including one that has elected to make payments in lieu of contributions, that is neither chargeable, pursuant to Section 1502.1 of the Act, for any benefits paid to the individual nor for which the individual performed services during his or her base period.

 

7)         Social Security retirement pensions and disability payments based on the individual's employment, including those based on self-employment.

 

(Source:  Amended at 45 Ill. Reg. 10834, effective August 23, 2021)

 

Section 2920.85  Conformity With Federal Unemployment Tax Act

 

In order to assure full state tax credit against the tax imposed by the Federal Unemployment Tax Act, (26 U.S.C. 3301 et seq) the rules relating to retirement pay shall be interpreted in conformity with the requirements of the Federal Unemployment Tax Act as interpreted by the U.S. Secretary of Labor or other appropriate Federal agency.