TITLE 80: PUBLIC OFFICIALS AND EMPLOYEES
SUBTITLE D: RETIREMENT SYSTEMS
CHAPTER II: STATE UNIVERSITIES RETIREMENT SYSTEM
PART 1600
UNIVERSITIES RETIREMENT
SECTION 1600.100 DEFINITIONS
Section 1600.100 Definitions
Certain terms used frequently
throughout this Part are defined in this Section. Unless the context requires a
different meaning, other terms used in this Part shall be defined and
interpreted in accordance with Article 15 of the Illinois Pension Code [40 ILCS
5/Art. 15]. The definition of a term under a specific Section or Subpart shall supersede,
for the purposes of that Section or Subpart, this Section.
"Annuitant"
− A person receiving a retirement, reversionary, survivors or
beneficiary annuity or disability retirement annuity from the System. [40
ILCS 5/15-119]
"Annuity Payment
Period" – The annuity payment period shall
begin on the date specified by the participant or the recipient of a disability
retirement annuity submitting a written application. For a participant, the
date on which the annuity payment period begins shall not be prior to
termination of employment or more than one year before the application is
received by the board; however, if the participant is not an employee of an
employer participating in this System or in a participating system as defined
in Article 20 of the Code on April 1 of
the calendar year next following the calendar year in which the participant
attains the age specified under Section 401(a)(9) of the Internal Revenue Code
of 1986, as amended, the annuity payment period shall begin on that date
regardless of whether an application has been filed. For a recipient of a
disability retirement annuity, the date on which the annuity payment period
begins shall not be prior to the discontinuation of the disability retirement
annuity under Section 15-153.2 of the Code. [40 ILCS
5/15-135(b)] For purposes of this definition, the
"termination of employment" shall be immediately prior to midnight on
the last day the person is an employee; and the "discontinuation of the
disability retirement annuity" shall be the day following the last day the
disability retirement annuity is payable.
"Board"
− The Board of Trustees of the State Universities Retirement System as
constituted under Section 15-159 of the Code.
"Chairperson" – The chairperson of the Board.
"Claims
Panel" − The quasi-adjudicative body constituted
under the Board's bylaws that hears all administrative contested matters as
fiduciaries pursuant to Section 1600.500.
"Code"
or "Pension Code" − The Illinois Pension Code [40 ILCS 5].
"Effective
Rate of Interest" − The interest rate for all or any part of a fiscal year that is determined by the Board
based on factors including the System's past and expected investment
experience; historical and expected fluctuations in the market value of
investments; the desirability of minimizing volatility in the effective rate of
interest from year to year; and the provision of reserves for anticipated
losses upon sales, redemptions, or other disposition of investments and for
variations in interest experience. [40
ILCS 5/15-125(2)] See Section 15-125(2) of the Code for the effective rate of
interest set by the State Comptroller for purposes of Rule 2 of Section
15-136(a) of the Code (i.e., the Money Purchase Formula).
"Employee"
− A person defined as an "employee" under Section 15-107 of the
Code.
"Employer" − An
entity defined as an "employer" under Section 15-106 of the Code.
"Executive
Director" − The chief administrative officer of SURS, appointed by
the Board.
"FOIA"
− Freedom of Information Act [5 ILCS 140].
"General
Counsel" − In-house legal counsel for SURS.
"IRS"
− Internal Revenue Service of the U.S. Department of the Treasury.
"IRC"
− Internal Revenue Code of 1986, as amended
(26 U.S.C. 1 et seq.).
"Member"
− A SURS participant or annuitant.
"Participant"
− A person participating in SURS under Section 15-134 of the Code.
"Participating
Employee" − A participant who at the time is an employee under
Section 15-107 of the Code.
"Prescribed Rate of
Interest" − The rate of interest to be used in actuarial valuation
and in development of actuarial tables. The prescribed rate of interest is
determined by the Board on the basis of the probable average effective rate of
interest on a long term basis. [40 ILCS 5/15-125(1)]
"Principal Office of SURS"
− State Universities Retirement System, 1901 Fox Drive, Champaign IL
61820.
"SURS" or "System"
− State Universities Retirement System created by Article 15 of the Code
[40 ILCS 5/Art. 15].
"Tier 1 Member" – A
SURS participant or annuitant defined under Section 15-108.1 of the Code.
"Tier 2 Member" – A
SURS participant or annuitant defined under Section 15-108.2 of the Code.
"USERRA"
– Uniformed Services Employment and Reemployment Rights Act of 1994 (38 U.S.C.
4301 et seq.).
(Source: Amended at 49 Ill. Reg. 3321,
effective February 26, 2025)
 | TITLE 80: PUBLIC OFFICIALS AND EMPLOYEES
SUBTITLE D: RETIREMENT SYSTEMS
CHAPTER II: STATE UNIVERSITIES RETIREMENT SYSTEM
PART 1600
UNIVERSITIES RETIREMENT
SECTION 1600.110 FREEDOM OF INFORMATION ACT
Section 1600.110 Freedom of
Information Act
a) Purpose.
This Section establishes policies and procedures specific to SURS concerning
requests for information made under FOIA.
b) Freedom
of Information Officer. The Freedom of Information Officer is the staff member
at SURS responsible for responding to all requests for information on behalf of
SURS as the "public body" under FOIA and is also responsible for
maintaining all records required to be kept under FOIA and this Section. The
Freedom of Information Officer shall be the SURS General Counsel or a designee
of the SURS Executive Director. Denials issued by the Freedom of Information
Officer shall inform the requester of the right of review by the Public Access
Counselor under Section 9.5 of FOIA or by a court under Section 11 of FOIA.
c) Time
and Place for Requests or Inspection. Records subject to FOIA shall be made
available for inspection and copying at SURS principal office (see Section
1600.100) on weekdays between the hours of 8:00 a.m. and 4:30 p.m., excluding
days during which the office is closed to the public. Written requests shall
be directed to the Freedom of Information Officer or a designee in the SURS
Legal Department by mail that is addressed to the SURS principal office by
facsimile at (217)378-9801, or by email to FOIA_Officers@surs.org. Oral
requests for inspection or copying may be made in person or by phone at 217-378-8800.
d) Fees.
Subject to a waiver or reduction of the fee if warranted under Section 6 of FOIA,
fees may be imposed on the requester to recover costs of document production or
reproduction according to the following schedule:
1) Photostatic copying of
paper documents:
A) Black
and white copies shall be charged after the first 50 pages at $0.05 per page;
B) Color
copies shall be charged at $0.13 per page.
2) Printing
of electronic documents or microfilmed/microfiched documents shall be charged
at $0.05 per page.
3) Physical
storage on electronic, tape or other media, shipping and facsimile transmission
costs shall be charged to the extent those costs are incurred. Electronic
transmission via e-mail shall be provided at no charge.
e) Exemptions.
Consistent with Section 7 of FOIA, the following public records shall be exempt
from inspection and copying: personal information that includes any personally
identifying or identifiable information other than names or benefit amounts,
including, but not necessarily limited to, Social Security numbers and
addresses of participants and annuitants, and names and Social Security numbers
and addresses of beneficiaries.
(Source: Amended at 43 Ill.
Reg. 8562, effective July 26, 2019)
| TITLE 80: PUBLIC OFFICIALS AND EMPLOYEES
SUBTITLE D: RETIREMENT SYSTEMS
CHAPTER II: STATE UNIVERSITIES RETIREMENT SYSTEM
PART 1600
UNIVERSITIES RETIREMENT
SECTION 1600.120 OPEN MEETINGS ACT
Section 1600.120 Open
Meetings Act
a) Introduction
1) The Illinois Open Meetings Act [5 ILCS 120] sets forth the
public policy of the State of Illinois that public bodies exist to aid in the
conduct of the people's business and that the people have a right to be
informed as to the conduct of their business. It is also the public
policy of the State that its citizens be given advance notice of and the right
to attend all meetings at which any business of a public body is discussed or
acted upon in any way.
2) It is the intent of the Open Meetings Act:
A) to ensure that the actions of public bodies be taken openly
and that their deliberations be conducted openly;
B) to protect the citizen's right to know; and
C) that provisions for exceptions to the open meeting
requirements be strictly construed against closed meetings. [5 ILCS 120/1]
3) By means of this Section, SURS has established procedures to
conduct its business in accordance with the Open Meetings Act.
b) Definition
"Meeting" − Any
gathering, whether in person or by video or audio conference, telephone call,
electronic means (such as, without limitation, electronic mail, electronic
chat, and instant messaging), or other means of contemporaneous interactive
communication, of a majority of a quorum of the Board held for the purpose of
discussing SURS business. [5 ILCS 120/1.02] A quorum for a Board of
Trustees meeting shall be six members of the Board. A quorum for a Board
committee is the least number more than one-half of the members of the
committee. A quorum of the Board or of a Board committee must be physically
present at the location of an open meeting of the Board or the committee,
respectively. If, however, an open meeting of the Board or a Board committee
is held simultaneously at one of its offices and one or more other locations in
a public building, which may include other of its offices, through an
interactive video conference and public notice is provided as required under
the Open Meetings Act for all locations, then members physically present in
those locations all count towards determining a quorum. "Public
building", as used in this Section, means any building or portion of a
building owned or leased by any public body. The requirement that a quorum be
physically present at the location of an open meeting shall not apply, however,
to Board committees that do not have authority to make binding recommendations
or determinations or to take any other substantive action.
c) Attendance
by a Means Other Than Physical Presence
1) If a
quorum of the members of the Board or a Board committee is physically present
as required by subsection (b), a majority of those physically present, or at
least 3 physically present members of a committee consisting of 5 members, may
allow a member of that body to attend the meeting by other means (video or
audio conference) if the member is prevented from physically attending because
of:
A) personal illness or
disability;
B) employment purposes or
the business of the public body; or
C) a family or other
emergency.
2) If a
member wishes to attend a meeting by other means, the member must notify the
recording secretary of the Board or the Board committee before the meeting
unless advance notice is impractical.
3) A
majority of the Board or a committee may allow a member to attend a meeting by
other means only in accordance with and to the extent allowed by this
subsection (c).
4) Except
as provided in this subsection (c)(4), the limitations of this subsection (c)
shall not apply to closed meetings of the Board or the Executive Committee or
to open or closed meetings of any other subsidiary body, including without
limitation any committee other than the Executive Committee, that does not have
authority to make binding recommendations or determinations or to take any
other substantive action. If the limitations of this subsection (c) do not
apply, any or all members of the Board or a subsidiary body may attend a
meeting by audio or video conference. An open meeting attended by audio or
video conference will be broadcast at the properly noticed location of the
meeting. Neither advance notice nor permission for such means of attendance is
required. No minimum number of members need be physically present at the
noticed location of the meeting.
d) Time and Place of Open Meetings
1) All open meetings shall be held at specified times and places
which are convenient and open to the public.
2) No open meeting shall be held on a legal holiday unless the
regular meeting day falls on that holiday. [5 ILCS 120/2.01]
e) Public Notice; Agenda; Schedule
1) Posting. Public notice shall be given by posting a copy of
the notice at the principal office of SURS [5 ILCS 120/2.02(a)]. Copies
of the posted notice shall also be given to any news medium that has filed
with the Executive Director an annual request for notice of meetings [5
ILCS 120/2.02(b)].
2) News Medium Request. Any news medium may file with the
Executive Director of SURS an annual request for public notice of all meetings
of the Board of Trustees of SURS. The Executive Director shall maintain an
updated list of all news media that have filed annual requests and shall be
responsible for seeing that the news media receive the notices mandated by the
Open Meetings Act and this Section.
3) Regular Meetings. Public notice shall be given of the
schedule of regular meetings at the beginning of each fiscal year, stating the
regular dates, times, and places of each meeting.
A) Agenda of Regular Meetings. An agenda for each regular
meeting shall be posted in accordance with subsection (e)(1) at least 48
hours in advance of the holding of the meeting. However, this requirement
shall not preclude the consideration of items not specifically set forth in the
agenda. [5 ILCS 120/2.02(a)]
B) Schedule of Regular Meetings. At the beginning of each fiscal
year, the Executive Director of SURS shall prepare and make available a
schedule of all its regular meetings for that fiscal year, listing the times
and places of meetings.
C) Change in Regular Meeting Date. If a change is made in a
regular meeting date, at least 10 days' notice of the change shall be given by
publication in the official State newspaper. Notice of the change shall
also be posted at the principal office of SURS. Notice of the change
shall also be given to any news medium that has filed with the Executive
Director an annual request for notice of meetings. [5 ILCS 120/2.03]
4) Special Meetings. Public notice of any special meeting shall
be given at least 48 hours before the meeting.
A) Agenda of Special Meetings. An agenda of a special meeting
shall also be included with the public notice of the meeting. However, the
validity of any action taken by the Board that is germane to a subject
on the agenda shall not be affected by other errors or omissions in the agenda.
[5 ILCS 120/2.02(a)]
B) News Medium Notice. Any news medium that has filed an
annual request for notice shall be given the same notice of any special meeting
in the same manner as is given to members of the Board, provided that the
news medium has given the Executive Director an address or telephone
number within Illinois at which notice may be given. [5 ILCS 120/2.02(b)]
5) Rescheduled or Reconvened Meetings. Public notice of any
rescheduled or reconvened meeting shall be given at least 48 hours before the
meeting.
A) Exception to Notice Requirement. No public notice is required
to be given of any reconvened meeting when the meeting was open to the
public and either:
i) the meeting is to be reconvened within 24 hours; or
ii) an announcement of the time and place of the reconvened
meeting is made at the original meeting and there is no change in the agenda.
[5 ILCS 120/2.02(a)]
B) Agenda of Rescheduled or Reconvened Meeting. An agenda of a
rescheduled or reconvened meeting shall also be included with the public notice
of the meeting. However, the validity of any action taken by the Board that
is germane to a subject on the agenda shall not be affected by other errors or
omissions in the agenda. [5 ILCS 120/2.02(a)]
C) News Medium Notice. Any news medium that has filed an
annual request for notice shall be given the same notice of any rescheduled or
reconvened meeting in the same manner as is given to members of the Board, provided
that the news medium has given the Executive Director an address or
telephone number within Illinois at which notice may be given. [5 ILCS
120/2.02(b)]
6) Emergency Meeting. Notice of an emergency meeting shall be
given as soon as is practicable. In any event, prior to an emergency meeting
being held, notice shall be given to any news medium that has filed an annual
request for notice. [5 ILCS 120/2.02(a)] Any news medium that has
filed an annual request for notice shall be given the same notice of any
emergency meeting in the same manner as is given to members of the Board, provided
that the news medium has given the Executive Director an address or
telephone number within Illinois at which notice may be given. [5 ILCS
120/2.02(b)]
f) Recording Meeting
1) Any person may record by tape, film or other means the
proceedings at any open meeting, subject to the provisions of this
subsection (f).
2) If any witness at any meeting required to be open under the
Open Meetings Act refuses to testify on the grounds that he or she may not
be compelled to testify if any portion of his or her testimony is to be
broadcast or televised or if motion pictures are to be taken, then the
authority holding the meeting shall prohibit any recording during the testimony
of the witness. Nothing in this subsection (f) shall be
construed to extend the right to refuse to testify at any meeting not subject
to the provisions of Section 8-701 of the Code of Civil Procedure. [5 ILCS
120/2.05]
3) "Recording
Device" shall mean any device that records and stores, transcribes,
transmits or broadcasts still images, moving images and/or sounds, regardless
of format or medium, including, but not limited to, still cameras, video
cameras, camcorders, computing devices (regardless of size), mobile phones,
personal data assistants, voice recorders or any other similar device and any
accessories or equipment used in conjunction with the device that are used to
record an open meeting.
4) A recording
device shall be operated in a manner that does not disrupt or interfere with
the deliberative process and the public's ability to observe or listen to the
proceedings. The Board, Board committee, or SURS staff may limit the number of
recording devices being operated in the meeting room if the number of devices
being operated in the aggregate causes or may cause disruption or interference.
5) All
mounted recording devices must be set up prior to the commencement of the
meeting and may not be moved or removed until the proceeding has concluded,
unless otherwise permitted by the Board, Board committee, or SURS staff. If a recording
device requires additional equipment that needs placement in the meeting room,
such as power cords, standing lights and microphones, those items may only be
placed and operated in designated areas assigned by the Board, Board committee
or SURS staff, provided the areas are not limited to a location from which the recording
device is not reasonably capable of making a recording. Arrangements shall be
made with SURS staff at least 48 hours prior to the meeting to ensure the
availability of space for recording devices and equipment.
6) Recording
devices are not permitted to be placed or operated in any emergency exit
pathways or aisles, including entrances and exits.
7) No recording
device operated by a member of the public may be used to record a closed
meeting.
g) Closed Meetings
1) Subject. The Board or a Board committee may hold closed
meetings to consider any subject permitted under Section 2(c) of the Open
Meetings Act, including the following subjects:
A) The appointment, employment, compensation, discipline,
performance, or dismissal of specific employees of SURS, including
hearing testimony on a complaint lodged against an employee to determine its
validity [5 ILCS 120/2(c)(1)];
B) Collective negotiating matters between SURS and its
employees or their representatives, or deliberations concerning salary
schedules for one or more classes of employees [5 ILCS 120/2(c)(2)];
C) Evidence or testimony presented in open hearing, or in
closed hearing when specifically authorized by law, to a quasi-adjudicative
body, provided that the body prepares and makes available for public inspection
a written decision setting forth its determinative reasoning [5 ILCS
120/2(c)(4)];
D) The purchase or lease of real property for the use of
SURS [5 ILCS 120/2(c)(5)];
E) The setting of a price for sale or lease of real property
owned by SURS [5 ILCS 120/2(c)(6)];
F) The sale or purchase of securities, investments, or
investment contracts [5 ILCS 120/2(c)(7)];
G) Emergency security procedures and the use of personnel and
equipment to respond to actual danger to the safety of employees, staff, or
public property, provided that a description of the actual danger shall be
made a part of the motion to close the meeting [5 ILCS 120/2(c)(8)];
H) Litigation, when an action against, affecting or on behalf
of SURS has been filed and is pending before a court or administrative
tribunal, or when the Board or a Board committee finds that an action is
probable or imminent, in which case the basis for the finding shall be recorded
and entered into the minutes of the closed meeting [5 ILCS 120/2(c)(11)];
I) Self evaluation, practices and procedures or professional
ethics, when meeting with a representative of a statewide association of which
SURS is a member [5 ILCS 120/2(c)(16)];
J) The classification and discussion of matters classified as
confidential or continued confidential by the State Employees Suggestion Award
Board (see 20 ILCS 405/67.28) [5 ILCS 120/2(c)(20)]; and
K) Discussion of minutes of closed meetings, whether for
purposes of approval by the Board or Board committee of the minutes, or
for purposes of semiannual review of the minutes [5 ILCS 120/2(c)(21)].
2) Procedure
A) Vote. Upon the majority vote of a quorum present of the Board or
Board committee at an open meeting, the Board may hold a meeting closed to
the public or may close a portion of a meeting to the public. The motion
to close a meeting, or a portion of the meeting, shall state a citation to
the specific exemption set forth in Section 2 of the Open Meetings Act.
The vote of each member shall be taken by roll call vote, shall be publicly
disclosed, and shall be recorded and entered into the minutes of the meeting.
B) Subject. Only topics specified in the vote to close may be
considered during the closed meeting.
C) Series of Meetings. A single vote may be taken with respect
to a series of meetings, a portion or portions of which are proposed to be
closed to the public, provided each meeting in the series involves the same
particular matters and is scheduled to be held within no more than 3 months
after the vote. [5 ILCS 120/2a]
h) Minutes of Meetings
1) Open Meetings
A) Content. The Board or Board committee shall keep written
minutes of all open meetings. The minutes shall include:
i) the date, time and place of the meeting;
ii) the members of the Board recorded as either present or
absent, and whether the members were physically present or present by means of
video or audio conference; and
iii) a summary of discussion on all matters proposed, deliberated,
or decided, and a record of any votes taken.
B) Public Inspection. The minutes of any open meeting shall be
available for public inspection within 7 days after the approval of the minutes
by the Board or Board committee.
2) Closed Meetings
A) Content. The Board or Board committee shall keep written
minutes of all closed meetings. The minutes shall include:
i) the date, time and place of the meeting;
ii) the members of the Board recorded as either present
or absent; and
iii) a summary of discussion on all matters proposed,
deliberated, or decided, and a record of any votes taken.
B) Public Inspection. The minutes of any closed meeting shall
be available for public inspection only after the Board determines that it is
no longer necessary to protect the public interest or the privacy of an
individual by keeping the minutes confidential.
C) Semiannual Review. The Board shall semiannually review
minutes of all closed meetings. At closed meetings, a determination shall be
made, and reported in an open session, that either:
i) the need for confidentiality still exists as to all or a
part of those minutes; or
ii) the minutes or portions of the minutes no longer require
confidential treatment and are available for public inspection. [5 ILCS
120/2.06]
i) Address by Members of
the Public
1) Notice.
A person who wishes to address the Board or a Board committee shall provide
written notice of the intent to make an address at least 48 hours prior to the
scheduled commencement of the meeting of the Board or Board committee. The
notice shall describe the identity of the speaker and the general subject
matter of the address, and shall specify the Board committee or Board meeting
at which the address will be made. A copy of any written materials that the
person wishes to distribute to the Board or Board committee members during the
address must be attached to the notice.
2) Time
Allotment. The person may address the Board or Board committee concerning any
matter that does not concern a resolution of final action on the agenda for no
longer than 5 minutes at the end of the meeting of the Board or Board committee
specified in the notice, unless otherwise permitted by the Board or Board
committee. If the person wishes to address the Board or Board committee
concerning a resolution of final action on the agenda, then the person may
address the Board or Board committee for no longer than 5 minutes after the
scheduled presentations on the resolution have concluded.
(Source: Amended at 37 Ill.
Reg. 3866, effective March 15, 2013)
| TITLE 80: PUBLIC OFFICIALS AND EMPLOYEES
SUBTITLE D: RETIREMENT SYSTEMS
CHAPTER II: STATE UNIVERSITIES RETIREMENT SYSTEM
PART 1600
UNIVERSITIES RETIREMENT
SECTION 1600.130 PROCUREMENT
Section 1600.130 Procurement
a) Introduction. It is the policy of SURS to obtain goods and
services in the most economical manner in order to guarantee the efficient
utilization of SURS resources. Resources of SURS shall be committed only with
proper approval, as detailed in this Section.
b) Purchase Orders. Employees requesting goods or services that
cost more than $500 and that are not part of a formal written contract shall
complete a SURS purchase order form and receive written approval from the
person designated by the Executive Director as the Procurement Officer prior to
placing the order. Purchases of less than $500 do not require a purchase
order, but must be within the authority of the employee to purchase.
c) Contract Policy. It is the policy of SURS to standardize the form
and content of its contracts with public and private bodies in order to ensure
compliance with applicable State law, to ensure fairness to all parties, and to
maximize uniformity of language.
1) Standard Addendum. In order to simplify the contracting
process, SURS has developed a standard contract addendum that includes
certifications considered advisable or required by State law. The standard
addendum shall be completed and attached to (or incorporated within) all
contracts and purchase orders entered into by SURS, but shall not be required
for purchase orders of $25,000 or less. Any variation from the terms of the
standard addendum shall be approved by SURS' General Counsel. The standard
addendum may be revised by the General Counsel from time to time.
2) Written Contracts
A) Execution Requirements. All expenditures in excess of $25,000
that are not otherwise covered by any exemption stated in this Section shall
require a written contract reviewed and approved by legal counsel to SURS. Contracts
in any amount shall be executed by the Executive Director or his or her
designee, unless executed by the President of the Board. No goods or services
may be acquired, nor work commenced (unless the vendor specifically assumes the
risk of non-payment in the event no contract is entered into), prior to the
execution of a contract as provided in this Section. A copy of each contract
shall be retained by the Chief Financial Officer.
B) Signature Requirements
i) Except as provided in subsection (c)(2)(B)(ii), contracts in
excess of $250,000 require the signatures of the Executive Director, the Chief
Financial Officer and the General Counsel.
ii) In addition to the requirements of subsection (c)(2)(B)(i),
all contracts with persons who are fiduciaries with respect to any investments
of SURS shall also be signed by the President of the Board, or his or her
designee, except that the Executive Director's signature is sufficient with
respect to investment management agreements or other contracts with
Board-approved investment service providers and contract amendments with
existing Board-approved investment service providers. The Executive Director
shall provide a report of such execution, with a description of any contract or
amendment executed, to the Investment Committee of the Board at the next
regularly scheduled meeting.
d) Documentation and Bidding – Expenditures in Excess of $50,000
1) Employees shall seek to obtain the best value for SURS.
Efforts to obtain the best value for SURS shall be documented where possible
and retained by SURS. Expenditures in excess of$50,000 require bids from at
least three different sources, unless otherwise provided in this Section. Sole
source procurements, or other procurements with fewer than three bids, for
expenditures in excess of $50,000 shall be justified and documented. If two or
more identical bids are received, if an attempt to bribe an employee is made,
or other irregularities are discovered by a SURS employee, the General Counsel
and the Internal Auditor shall be notified.
2) All procurements in excess of $50,000, unless otherwise
provided in this Section, shall be advertised in the official State newspaper,
in the Illinois Procurement Bulletin, in SURS procurement bulletins, in
appropriate media, or through electronic means such as the Internet. Notice
shall be published on at least 3 separate dates with a minimum of 14 days
between the first and the last publication date.
3) All procurements for goods and services in excess of $50,000,
unless otherwise provided in this Section, shall be awarded by competitive
proposals. Each request for proposal shall set forth a description of the items
or services being procured, the material contractual terms and conditions, and
the criteria for evaluating proposals. Awards made pursuant to competitive
selection procedures shall be awarded to the responsible offeror whose proposal
is determined to be most advantageous to SURS. SURS may directly negotiate
with any offeror as to the terms of a proposal. Competitive proposals may be
used to procure, but are not limited to, professional and artistic services,
including legal, medical and related services, investment management and
consulting, electronic data processing equipment, software and services, and
telecommunications equipment, software and services.
4) The following procurements do not require advertising or the
use of competitive proposals:
A) Individual contracts for goods, services or construction not
exceeding $50,000;
B) Emergency procurements, such as when there exists a threat to
public health or safety, or when immediate expenditure is necessary in order to
protect against loss of or damage to SURS property or interests, or to prevent
or minimize disruption in SURS services, or when necessary to prepare for
anticipated litigation, enforcement actions, or investigations, or to protect
the integrity or confidentiality of SURS records. A written determination must
be made that an emergency exists; and
C) Utilities and other sole-source items.
e) Purchasing
1) Employees are allowed to make purchases provided that the
goods or services are budgeted for, and a purchase order (for purchases in
excess of $500) is completed and has written approval in advance of placing the
order, or a formal contract (for purchases in excess of $25,000) is executed,
and the provisions of this Section are complied with. Employees other than
those designated by the Executive Director are not allowed to make purchases of
office supplies, computer equipment, or software.
2) SURS shall not pay Illinois sales tax. Employees must direct
the vendor to exclude Illinois sales tax from invoices. Employees should also
ask if discounted State rates are available for purchases.
3) Invoices should be approved for payment within 30 days after the
receipt of the invoice. Approval should not be given for goods and services
that do not conform to SURS' requirements. The vendor shall be promptly
notified in writing if SURS does not approve an invoice for payment and shall
be advised of the reason for the denial. If approval is made after 30 days, a
full explanation should be attached to the invoice.
4) Advance payment for goods and services is discouraged. If
advance payment is required, the employee shall complete a certification as
specified in Section 9.05 of the State Finance Act [30 ILCS 105/9.05]. In the
event that a voucher is submitted for advance payment, the voucher shall state
on its face that the goods or services are being procured pursuant to a formal
written contract the terms of which require advance payment. If it is not
possible to execute a written contract, the voucher shall so state. The
certification is not required for payment of conference fees, purchase of
travel tickets, purchase of periodicals, and required deposits of less than
$500. The certification shall be in the following format:
"I
certify that the goods or services specified on this contract or purchase order
were for the use of this agency and that the expenditure for those goods or
services was authorized and lawfully incurred; that the goods or services meet
all the required standards set forth in the purchase order or contract to which
this certification relates; and that the amount shown on this voucher is
correct and is approved for payment."
Insert
following sentence in certification if applicable:
"It is
not possible to execute a formal written contract."
(Source: Amended at 38 Ill.
Reg. 17457, effective July 30, 2014)
| TITLE 80: PUBLIC OFFICIALS AND EMPLOYEES
SUBTITLE D: RETIREMENT SYSTEMS
CHAPTER II: STATE UNIVERSITIES RETIREMENT SYSTEM
PART 1600
UNIVERSITIES RETIREMENT
SECTION 1600.140 COMPLIANCE WITH THE INTERNAL REVENUE CODE
Section 1600.140 Compliance with the Internal Revenue
Code
a) Purpose.
This Section is intended to implement qualification requirements under IRC section
401(a) as applicable to governmental plans within the meaning of IRC section
414(d). The System is intended to be a qualified governmental plan under the
meaning of those IRC provisions.
b) Exclusive
Benefit Rule and Nonreversion of Trust Assets. Prior to the satisfaction of
all liabilities to participants or their beneficiaries, no part of the corpus
or income of the System shall be used for, or diverted to, purposes other than
for the exclusive benefit of the System's participants or their beneficiaries.
No part of the System's assets may revert to the State of Illinois or any employer
except in the case of a good faith mistake of fact as permitted by IRS Revenue
Ruling 91-4, 1991-1 C.B. 57.
c) Nonforfeitability.
Upon termination of the System or upon complete discontinuance of contributions
to the System, the rights of each participant to benefits accrued to the date
of the termination or discontinuance are nonforfeitable.
d) USERRA.
The provisions of Code Section 1-118 (concerning veterans' rights) shall be
effective with respect to the System beginning December 12, 1994.
e) Required
Minimum Distributions. The provisions of Code Section 1-116.1 (concerning
minimum required distributions) shall be effective with respect to the System
beginning January 1, 1987. The System shall pay all benefits in accordance
with a reasonable good faith interpretation of the requirements of IRC section
401(a)(9).
f) Federal
Contribution and Benefit Limitations. Pursuant to Code Section 1-116, the
System shall comply with the applicable contribution and benefit limitations
imposed by IRC section 415 for limitation years beginning on or after January
1, 1976.
g) Mortality
Tables and Interest Rates. The mortality tables and interest rates adopted by
the Board of Trustees of the System from time to time in accordance with Code
Sections 15-124 and 15-125 shall apply to the System as though those provisions
were fully set forth in Article 15 of the Code. This subsection (g) applies
beginning July 1, 1963.
h) Direct
Transfer of Eligible Rollover Distributions. For distributions made on or
after January 1, 1993, the System shall implement Code Section 1-106(b)
(concerning direct rollovers) in accordance with IRC section 401(a)(31), as
follows:
1) If a
distributee becomes entitled to an eligible rollover distribution, the
distributee may elect to have the distribution, or any portion of the
distribution, paid directly to an eligible retirement plan specified by the
distributee.
2) The
election made pursuant to this Section shall be in accordance with the terms
and conditions established by the Board.
3) Upon
exercise of the election by a distributee pursuant to this subsection (h), the
distribution from the System of the amount designated by the distributee shall
be made in the form of a direct transfer to the specified eligible retirement
plan.
4) For
purpose of this subsection (h), "distributee" means a member, a
surviving spouse, or a former spouse under a domestic relations order that is
treated as a qualified domestic relations order to the extent provided in IRC section
414(p)(11). For plan years beginning on or after January 1, 2010, a distributee
further includes a nonspouse beneficiary who is a designated beneficiary as
defined by IRC section 401(a)(9)(E). However, a nonspouse beneficiary may only
make a direct rollover to an individual retirement account or individual
retirement annuity established for the purpose of receiving the distribution,
and the account or annuity shall be treated as an "inherited"
individual retirement account or annuity.
5) Eligible
Rollover Distribution
A) For
purposes of this subsection (h), "eligible rollover distribution"
means a distribution from the retirement fund that constitutes an eligible
rollover distribution within the meaning of IRC section 401(a)(31)(D), i.e.,
any distribution of all or any portion of the balance to the credit of the
distributee, except that an eligible rollover distribution does not include:
i) any
distribution that is one of a series of substantially equal periodic payments
(not less frequently than annually) made:
• for the life (or life expectancy) of the
distributee or the joint lives (or joint life expectancies) of the distributee
and the distributee's designated beneficiary; or
• for a specified period of 10 years or more;
ii) any
distribution to the extent the distribution is required under IRC section
401(a)(9);
iii) the
portion of any distribution that is not includible in gross income; or
iv) any
distribution that is reasonably expected to total less than $200 during the
year.
B) Effective
January 1, 2002, a portion of a distribution shall not fail to be an eligible
distribution merely because a portion consists of after-tax contributions that
are not includible in gross income. However, that portion may be transferred
only:
i) to
an individual retirement account or annuity described in IRC section 408(a) or
(b) or to a qualified defined contribution plan described in IRC section 401(a)
that agrees to separately account for amounts so transferred (and earnings on
those amounts), including separately accounting for the portion of the
distribution that is includible in gross income and the portion of the
distribution that is not so includible;
ii) on
or after January 1, 2007, to a qualified defined benefit plan described in IRC section
401(a) or to an annuity contract described in IRC section 403(b) that agrees to
separately account for amounts transferred (and earnings on those amounts),
including separately accounting for the portion of the distribution that is
includible in gross income and the portion of the distribution that is not
includible; or
iii) on
or after January 1, 2008, to a Roth IRA described in IRC section 408A.
6) For
purposes of this subsection (h), "eligible retirement plan" means a
plan that constitutes an eligible retirement plan within the meaning of IRC section
401(a)(31)(E), the terms of which permit the acceptance of rollover
distribution and is limited to the following:
A) an individual retirement
account described in IRC section 408(a);
B) an individual retirement
annuity described in IRC section 408(b);
C) an annuity plan
described in IRC section 403(a);
D) a qualified trust
described in IRC section 401(a);
E) effective
January 1, 2002, an annuity contract described in IRC section 403(b);
F) effective
January 1, 2002, an eligible deferred compensation plan described in IRC section
457(b) that is maintained by an eligible employer described in IRC section
457(e)(1)(A) that agrees to separately account for amounts transferred into
that plan from the System;
G) effective
January 1, 2008, a Roth IRA described in IRC section 408A; and
H) effective
December 19, 2015, a SIMPLE IRA described in IRC section 408(p)(1), provided
that the rollover contribution is made after the 2-year period described in IRC
section 72(t)(6).
i) Qualified
Illinois Domestic Relations Orders. If benefits are payable pursuant to a
QILDRO that satisfies the requirements of "domestic relations order"
as defined in IRC section 414(p), then the applicable requirements of IRC section
414(p) shall be followed by the System.
(Source: Amended at 41 Ill.
Reg. 11606, effective September 1, 2017)
| TITLE 80: PUBLIC OFFICIALS AND EMPLOYEES
SUBTITLE D: RETIREMENT SYSTEMS
CHAPTER II: STATE UNIVERSITIES RETIREMENT SYSTEM
PART 1600
UNIVERSITIES RETIREMENT
SECTION 1600.145 COMPLIANCE WITH FINAL 415 TREASURY REGULATIONS
Section 1600.145 Compliance with Final 415 Treasury
Regulations
a) Subject
to Section 1600.140(f), the limitations of this Section in compliance with IRC
section 415 and the Final Treasury Regulations under IRC section 415 (26 CFR
1.415(a)-1 through (j)-1, T.D. 9319, April 5, 2007) shall apply in limitation
years beginning on or after January 1, 2008, except as otherwise provided in
this subsection (a).
1) The
IRC section 415(b) limit with respect to any member who, at any time has been a
participant in any other defined benefit plan (defined in IRC section 414(j))
maintained by the member's same employer in the System shall apply as if the
total benefits payable under all such defined benefit plans in which the member
has been a participant were payable from one plan.
2) The
IRC section 415(c) limit with respect to any member who, at any time, has been
a participant of any other defined contribution plan, as defined in IRC section
414(i), that was maintained by the member's same employer in the System shall
apply as if the total annual additions under all such defined contribution
plans in which the member has been a participant were payable to one plan.
3) For
purposes of this Section, the "limitation year" shall be the calendar
year, and "plan" shall be any one or more of the SURS retirement
plans, as the context requires.
b) Basic IRC Section 415(b)
Limitation
1) Before
January 1, 1995, a member may not receive an annual benefit that exceeds the
limits specified in IRC section 415(b), subject to the applicable adjustments
in that section. On and after January 1, 1995, a member may not receive an
annual benefit that exceeds the dollar amount specified in IRC section
415(b)(1)(A), subject to the applicable adjustments in IRC section 415(b), and
subject to any additional limits that may be specified in the Code. In no
event shall a member's benefit payable under the System in any limitation year
be greater than the limit applicable at the annuity starting date, as increased
in subsequent years pursuant to IRC section 415(d) and 26 CFR 1.415(d)-1.
2) For
purposes of IRC section 415(b), the "annual benefit" means a benefit
payable annually in the form of a straight life annuity (with no ancillary
benefits) without regard to the benefit attributable to after-tax employee
contributions (except pursuant to IRC section 415(n)) and to rollover
contributions (as defined in IRC section 415(b)(2)(A)). The "benefit
attributable" shall be determined in accordance with 26 CFR 1.415(b)-1(b).
A) Mandatory
Employee Contributions. In the case of mandatory employee contributions, as
defined in IRC section 411(c)(2)(C) and 26 CFR 1.411(c)-1(c)(4) (or
contributions that would be mandatory employee contributions if section 411
applied to the plan), the annual benefit attributable to those contributions is
determined by applying the factors applicable to mandatory employee
contributions, as described in IRC section 411(c)(2)(B) and (C) and Treasury
Regulations under section 411 to those contributions to determine the amount of
a straight life annuity commencing at the annuity starting date, regardless of
whether the requirements of sections 411 and 417 apply to that plan. For
purposes of applying those factors to a plan that is not subject to the
requirements of section 411, the applicable effective date of IRC section
411(a)(2) (which is used under 26 CFR 1.411(c)‑1(c)(3) to determine the
beginning date from which statutorily specified interest must be credited to
mandatory employee contributions) must be determined as if IRC section 411
applied to the plan, and in determining the annual benefit that is actuarially
equivalent to these accumulated contributions, the plan must determine the interest
rate that would have been required under IRC section 417(e)(3) as if IRC 417
applied to the plan.
B) Voluntary
Employee Contributions. If voluntary employee contributions are made to the
plan (to the extent not made pursuant to IRC section 415(n)), the portion of
the plan to which voluntary employee contributions are made is treated as a
defined contribution plan pursuant to IRC section 414(k) and, accordingly, is a
defined contribution plan pursuant to 26 CFR 1.415(c)‑1(a)(2)(i).
Accordingly, the portion of a plan to which voluntary employee contributions
are made is not taken into account in determining the annual benefit.
C) Rollover
Contributions. The annual benefit attributable to rollover contributions from
an eligible retirement plan, as defined in IRC section 402(c)(8)(B), is
determined in the same manner as the annual benefit attributable to mandatory
employee contributions. Thus, in the case of rollover contributions from a
defined contribution plan to a defined benefit plan to provide an annuity
distribution, the annual benefit attributable to those rollover contributions
for purposes of IRC section 415(b) is determined by applying the rules of IRC
section 411(c) as described in subsection (b)(2)(A) of this Section, regardless
of the assumptions used to compute the annuity distribution under the plan and
regardless of whether the plan is subject to the requirements of IRC sections
411 and 417. Accordingly, in such a case, if the plan uses more favorable
factors than those specified in IRC section 411(c) to determine the amount of
annuity payments arising from rollover contributions, the annual benefit under
the plan would reflect the excess of those annuity payments over the amounts
that would be payable using the factors specified in IRC section 411(c).
c) Adjustments to Basic IRC
Section 415(b) Limitation for Form of Benefit
1) If
the benefit under the System is other than the form specified in subsection
(b)(2), the benefit shall be adjusted so that it is the equivalent of the annual
benefit, using factors prescribed in 26 CFR 1.415(b).
2) If
the form of benefit, without regard to automatic annual increases, is not a
straight life annuity or a qualified joint and survivor annuity, then subsection
(c)(1) is applied by either reducing the IRC section 415(b) limit applicable at
the annuity starting date or adjusting the form of benefit to an actuarially
equivalent amount (determined using the assumptions specified in 26 CFR
1.415(b)-1(c)(2)(ii)) that takes into account the additional benefits under the
form of benefit as follows:
A) For a
benefit paid in a form to which IRC section 417(e)(3) does not apply (such as a
monthly benefit), the actuarially equivalent straight life annuity benefit that
is the greater of:
i) The
annual amount of the straight life annuity (if any) payable to the member under
the System commencing at the same annuity starting date as the form of benefit
to the member; or
ii) The
annual amount of the straight life annuity commencing at the same annuity
starting date that has the same actuarial present value as the form of benefit
payable to the member, computed using a 5% interest assumption (or the
applicable statutory interest assumption) and:
• for
limitation years prior to January 1, 2009, the applicable mortality tables
described in 26 CFR 1.417(e)‑1(d)(2) (Revenue Ruling 2001-62, or any
subsequent Revenue Ruling modifying the applicable provisions of that Revenue
Ruling; and
• for
limitation years after December 31, 2008, the applicable mortality tables
described in IRC section 417(e)(3)(B) (Notice 2008-85, or any subsequent IRS guidance
implementing IRC section 417(e)(3)(B)).
B) For a
benefit paid in a form to which IRC section 417(e)(3) applies (such as a lump
sum benefit), the actuarially equivalent straight life annuity benefit that is
the greatest of:
i) The
annual amount of the straight life annuity commencing at the annuity starting
date that has the same actuarial present value as the particular form of
benefit payable, computed using the interest rate and mortality table, or
tabular factor, adopted by the Board under Section 1600.140(g) for actuarial
experience;
ii) The
annual amount of the straight life annuity commencing at the annuity starting
date that has the same actuarial present value as the particular form of
benefit payable, computed using a 5.5% interest assumption (or the applicable
statutory interest assumption) and:
• for
limitation years prior to January 1, 2009, the applicable mortality tables
described in 26 CFR 1.417(e)‑1(d)(2) (Revenue Ruling 2001-62, or any
subsequent Revenue Ruling modifying the applicable provisions of that Revenue
Ruling); and
• for
limitation years after December 31, 2008, the applicable mortality tables
described in IRC section 417(e)(3)(B) (Notice 2008-85, or any subsequent IRS guidance
implementing IRC section 417(e)(3)(B)); or
iii) The
annual amount of the straight life annuity commencing at the annuity starting
date that has the same actuarial present value as the particular form of
benefit payable (computed using the applicable interest rate for the
distribution under 26 CFR 1.417(e)-1(d)(3), using the rate in effect for the
third month prior to the beginning of the plan year with a one-year
stabilization period) and:
• for
limitation years prior to January 1, 2009, the applicable mortality tables
described in 26 CFR 1.417(e)‑1(d)(2) (Revenue Ruling 2001-62, or any
subsequent that Revenue Ruling modifying the applicable provisions of that Revenue
Ruling); and
• for
limitation years after December 31, 2008, the applicable mortality tables
described in IRC section 417(e)(3)(B) (Notice 2008-85, or any subsequent IRS
guidance implementing IRC section 417(e)(3)(B)), divided by 1.05.
C) The
System's actuary may adjust the IRC section 415(b) limit at the annuity
starting date in accordance with subsection (c)(2)(A) and (B).
d) Benefits
for Which No Adjustment of IRC section 415(b) Limit Is Required. For purposes
of this Section, the following benefits shall not be taken into account in
applying these limits:
1) Any
ancillary benefit that is not directly related to retirement income benefits;
2) That
portion of any joint and survivor annuity that constitutes a qualified joint
and survivor annuity;
3) Any
other benefit not required under IRC section 415(b)(2) and 26 CFR 1.415(b) to
be taken into account for purposes of the limitation of IRC section 415(b)(1).
e) Other Adjustments in IRC
Section 415(b) Limitation
1) In
the event the member's retirement benefits become payable before age 62, the
limit prescribed by this Section shall be reduced in accordance with 26 CFR
1.415(b), pursuant to the provisions of IRC section 415(b), so that the limit
(as reduced) equals an annual straight life benefit (when the retirement
annuity begins) that is equivalent to a $160,000 (as adjusted) annual benefit
beginning at age 62.
2) In
the event the member's benefit is based on at least 15 years of service as a
full-time employee of any police department or fire department that is
organized and operated by the state or political subdivision maintaining the defined
benefit plan to provide police protection, firefighting services, or emergency
medical services for any area within the jurisdiction of the state or political
subdivision, or 15 years of service as a member of the Armed Forces of the
United States, or is based on 15 years of combined service, the adjustments
provided for in subsection1 (e)(1) shall not apply.
3) The
reductions provided for in subsection (e)(1) shall not apply to System benefits
received as a pension, annuity or similar allowance as a result of the member
becoming disabled by reason of personal injuries or sickness, or to amounts
received by beneficiaries, survivors or the estate of the member as a result of
the death of the member.
f) Less
than 10 Years of Participation or Service Adjustment for IRC Section 415(b)
Limitations. The maximum retirement benefits payable to any member who has
completed less than 10 years of participation shall be the amount determined
under subsection (b), as adjusted under subsection (c) and/or (e), multiplied
by a fraction, the numerator of which is the number of the member's years of
participation and the denominator of which is 10. The limit under subsection
(g) concerning the $10,000 limit shall be similarly reduced for any member who
has accrued less than 10 years of service, except the fraction shall be
determined with respect to years of service instead of years of participation.
The reduction provided by this subsection cannot reduce the maximum benefit
below 10% of the limit determined without regard to this subsection. The
reductions provided for in this subsection shall not be applicable to income
received as a pension, annuity or similar allowance as a result of the member
becoming disabled by reason of personal injuries or sickness, or to amounts
received by beneficiaries, survivors or the estate of the member as a result of
the death of the member.
g) $10,000
Limit. Notwithstanding the other provisions of this Section, the retirement
benefit payable with respect to a member shall be deemed not to exceed the IRC
section 415(b) limit if the benefits payable, with respect to a member under
this System and under all other qualified defined benefit pension plans of the
member's employer, do not exceed $10,000 for the applicable limitation year,
and for any prior limitation year, and the employer has not, at any time,
maintained a qualified defined contribution plan in which the member
participated.
h) Effect
of COLA without a Lump Sum Component on IRC Section 415(b) Testing. Effective
on and after January 1, 2008, for purposes of applying the limits under IRC
section 415(b) (the "limit") to a member with no lump sum benefit,
the following will apply:
1) A
member's applicable limit will be applied to the member's annual benefit in the
member's first limitation year without regard to any automatic annual increases
under the System;
2) To
the extent that the member's annual benefit equals or exceeds the limit, the
member will no longer be eligible for automatic annual increases from the
System until such time as the benefit, plus the accumulated increases, is less
than the limit; and
3) Thereafter,
in any subsequent limitation year, a member's annual benefit, including any
automatic annual increases under the System, shall be tested under the then
applicable benefit limit, including any adjustment to the IRC section
415(b)(1)(A) dollar limit under IRC section 415(d) and 26 CFR 1.415(b).
i) Effect
of COLA with a Lump Sum Component on IRC Section 415(b) Testing. On and after
January 1, 2008, with respect to a member who receives a portion of the member's
annual benefit in a lump sum, a member's applicable limit will be applied,
taking into consideration cost-of-living increases as required by IRC section
415(b) and 26 CFR 1.415(b).
j) IRC
Section 415(c) Limit. After-tax member contributions or other annual additions
with respect to a member may not exceed the lesser of $40,000 (as adjusted
pursuant to IRC section 415(d)) or 100% of the member's compensation.
1) Annual
additions are defined to mean the sum (for any year) of employer contributions
to a defined contribution plan, member contributions, and forfeitures credited
to a member's individual account. Member contributions are determined
without regard to rollover contributions and to picked-up employee
contributions that are paid to a defined benefit plan.
2) For
purposes of applying the IRC Section 415(c) limits only and for no other
purpose, the definition of compensation, when applicable, will be compensation
actually paid or made available during a limitation year, except as noted in IRC
Section 415(c) and as permitted by 26 CFR 1.415(c)-2; however, member
contributions picked up under IRC section 414(h) shall not be treated as
compensation.
3) Unless
another definition of compensation that is permitted by 26 CFR 1.415(c)-2 is
specified by the plan, compensation will be defined as wages within the meaning
of IRC section 3401(a) and all other payments of compensation to an employee by
an employer for which the employer is required to furnish the employee a
written statement under IRC sections 6041(d), 6051(a)(3) and 6052 and will be
determined without regard to any rules under IRC section 3401(a) that limit the
remuneration included in wages based on the nature or location of the
employment or the services performed (such as the exception for agricultural
labor in IRC section 3401(a)(2)).
A) However,
for limitation years beginning on and after January 1, 1998, compensation will
also include amounts that would otherwise be included in compensation but for
an election under IRC section 125(a), 402(e)(3), 402(h)(1)(B), 402(k) or 457(b).
For limitation years beginning on and after January 1, 2001, compensation will
also include any elective amounts that are not includible in the gross income
of the employee by reason of IRC section 132(f)(4).
B) For
limitation years beginning on and after January 1, 2008, compensation for the
limitation year will also include compensation paid by the later of 2½ months
after an employee's severance from employment or the end of the limitation year
that includes the date of the employee's severance from employment if:
i) the
payment is regular compensation for services during the employee's regular
working hours, or compensation for services outside the employee's regular
working hours (such as overtime or shift differential), commissions, bonuses or
other similar payments, and, absent a severance from employment, the payments
would have been paid to the employee while the employee continued in employment
with the employer; or
ii) the
payment is for unused accrued bona fide sick, vacation or other leave that the
employee would have been able to use if employment had continued.
C) Back
pay, within the meaning of 26 CFR 1.415(c)-2(g)(8), shall be treated as
compensation for the limitation year to which the back pay relates to the
extent the back pay represents wages and compensation that would otherwise be
included under this subsection (j)(3).
k) Service Purchases under
IRC Section 415(n)
1) Effective
for permissive service credit contributions made in limitation years beginning
after December 31, 1997, if a member makes one or more contributions to
purchase permissive service credit under the System, the requirements of IRC
section 415(n) will be treated as met only if:
A) The
requirements of IRC section 415(b) are met, determined by treating the accrued
benefit derived from all such contributions as an annual benefit for purposes
of IRC section 415(b); or
B) The
requirements of IRC section 415(c) are met, determined by treating all such
contributions as annual additions for purposes of IRC section 415(c).
2) For
purposes of applying this Section, the System will not fail to meet the reduced
limit under IRC section 415(b)(2)(C) solely by reason of this subsection (k)(2)
and will not fail to meet the percentage limitation under IRC section
415(c)(1)(B) solely by reason of this Section.
3) Permissive
Service Credit
A) For
purposes of this Section, the term "permissive service credit" means
service credit:
i) recognized
by the System for purposes of calculating a member's benefit under the System;
ii) that
the member has not received under the System; and
iii) that
the member may receive only by making a voluntary additional contribution, in
an amount determined under the System, that does not exceed the amount
necessary to fund the benefit attributable to the service credit.
B) Effective
for permissive service credit contributions made in limitation years beginning
after December 31, 1997, "permissive service credit" may include
service credit for periods for which there is no performance of service and,
notwithstanding subsection (k)(3)(A)(ii), may include service credited in order
to provide an increased benefit for service credit a member is receiving under
the System.
4) The
System will fail to meet the requirements of this Section if:
A) more
than 5 years of nonqualified service credit are taken into account for purposes
of this subsection (k)(4)(A); or
B) any
nonqualified service credit is taken into account under this subsection
(k)(4)(B) before the member has at least 5 years of participation under the System.
5) For
purposes of subsection (k)(4), effective for permissive service credit
contributions made in limitation years beginning after December 31, 1997, the
term "nonqualified service credit" means permissive service credit
other than that allowed with respect to:
A) service
(including parental, medical, sabbatical and similar leave) as an employee of
the Government of the United States, any state or political subdivision
thereof, or any agency or instrumentality of any of the foregoing (other than
military service or service for credit obtained as a result of a repayment
described in IRC section 415(k)(3));
B) service
(including parental, medical, sabbatical and similar leave) as an employee
(other than as an employee described in subsection (k)(5)(A) of an education
organization described in IRC section 170(b)(1)(A)(ii) that is a public,
private or sectarian school that provides elementary or secondary education
(through grade 12), or a comparable level of education, as determined under the
applicable law of the jurisdiction in which the service was performed;
C) service
as an employee of an association of employees who are described in subsection
(k)(5)(A); or
D) military
service (other than qualified military service under IRC section 414(u))
recognized by the System.
6) In
the case of service described in subsection (k)(5)(A) through (C), that service
will be nonqualified service if recognition of that service would cause a
member to receive a retirement benefit for the same service under more than one
plan.
7) In
the case of a trustee-to-trustee transfer after December 31, 2001, to which IRC
section 403(b)(13)(A) or IRC section 457(e)(17)(A) applies (without regard to
whether the transfer is made between plans maintained by the same employer):
A) the
limitations of subsection (k)(4) will not apply in determining whether the
transfer is for the purchase of permissive service credit; and
B) the
distribution rules applicable under federal law to the System will apply to
amounts transferred and any benefits attributable to those amounts.
8) For
an eligible member, the limitation of IRC section 415(c)(1) shall not be
applied to reduce the amount of permissive service credit that may be purchased
to an amount less than the amount allowed to be purchased under the terms of the
System in effect on August 5, 1997. For purposes of this subsection (k)(8), an
eligible member is an individual who first became a member in the System before
January 1, 1998.
9) Notwithstanding
any other provision of law to the contrary, the System may modify a request by
a member to make a contribution for the purchase of service credit if the
amount of the contribution would exceed the limits provided in IRC section 415
by using the following methods:
A) If the
law requires a lump sum payment for the purchase of service credit, the System
may establish a periodic payment plan for the member to avoid a contribution in
excess of the limits under IRC section 415(c) or 415(n).
B) If
payment pursuant to this subsection (k)(9) will not avoid a contribution in
excess of the limits imposed by IRC section 415(c) or 415(n), a pension fund
may either reduce the member's contribution to an amount within the limits of
those IRC sections or refuse the member's contribution.
l) Repayments
of Refunds. Any repayment of contributions (including interest thereon) to the
System with respect to an amount previously refunded upon a forfeiture of
service credit under the System, or another governmental plan maintained by an employer,
shall not be taken into account for purposes of IRC section 415, in accordance
with IRC section 415(k)(3).
m) Reduction
of Benefits Priority. Reduction of benefits and/or contributions to all plans
under the Illinois Pension Code that cover the same member, when required,
shall be accomplished by first reducing the member's benefit under any defined
benefit plans in which the member participated, with the reduction to be made
first with respect to the plan in which the member most recently accrued
benefits and thereafter in the priority determined by the plan and the plan administrator
of the other plans and, next, by reducing or allocating excess forfeitures for
defined contribution plans in which the member participated, with the reduction
to be made first with respect to the plan in which the member most recently
accrued benefits and thereafter in the priority established by the plan and the
plan administrator for the other plans provided; however, that necessary
reductions may be made in a different manner and priority pursuant to the
agreement of the plan and the plan administrator of all other plans covering the
member.
(Source: Added at 39 Ill. Reg. 8317,
effective June 1, 2015)
| TITLE 80: PUBLIC OFFICIALS AND EMPLOYEES
SUBTITLE D: RETIREMENT SYSTEMS
CHAPTER II: STATE UNIVERSITIES RETIREMENT SYSTEM
PART 1600
UNIVERSITIES RETIREMENT
SECTION 1600.150 GROUP TRUST PROVISIONS
Section 1600.150 Group Trust Provisions
a) Creation
and Purpose. A Group Trust is hereby created effective April 1, 1998, pursuant
to Section 15-177 of the Illinois Pension Code [40 ILCS 5]. The purpose of the
Group Trust is to hold and jointly invest the assets of the SURS defined
benefit plan, the Retirement Savings Plan (formerly the "Self-Managed
Plan"), and the disability benefit program for Retirement Savings Plan
participants provided under Section 15-103.3 of the Code (collectively "Participating
Trusts"), and make appropriate payments pursuant to directions from the
respective trusts. The Board shall be the trustee of the Group Trust.
b) Tax
Status. The Group Trust is intended to qualify as a group trust under IRC Sections
401(a) and 501(a), and Revenue Ruling 81-100, as modified by Revenue Rulings
2004-67, 2011-1 and 2014-24, and all provisions of this Section must be so
construed. The Group Trust is established within the System and the Board
shall generally assert that no taxes may be assessed on any income or interest
of the Group Trust.
c) Exclusive
Benefit. Notwithstanding anything in this Section to the contrary, no part of
the Group Trust that equitably belongs to a Participating Trust, other than
that portion required for reasonable fees, taxes and trust expenses applicable
to the Participating Trust, may be used or diverted for any purpose other than
the exclusive benefit of the Participating Trust's participants or their
beneficiaries who are entitled to benefits under the Participating Trust.
d) Nonassignment.
No Participating Trust may assign or transfer any part of its equity or
interest in the Group Trust, except in accordance with this Section.
e) Authority
of the Board. The Board's determination as to whether any investment is within
the class or classes of property in which the Group Trust may be invested will
be conclusive; provided, however, that all such decisions must be made in
accordance with the then current investment policy adopted by the Board and
consistent with any requirements under Article 1 of the Pension Code. The
Board is solely and exclusively responsible for, and has exclusive authority
and discretion for, the management and control of the Group Trust. Subject to
the provisions of the preceding sentence, the Board may, at its reasonable
expense, retain the services of such investment or other advisers and
consultants as it may deem desirable to assist it in carrying out its
responsibilities under this Section.
f) Trust
Accounting. The Group Trust will be invested and administered as a common
investment fund. The equitable interest of each Participating Trust shall be
accounted for separately in dollar amounts or proportional interest.
Consistent with the selected accounting method, the Board shall maintain books
and records that value the interest of each Participating Trust at least
monthly.
g) Admission
to Participation. Participation in the Group Trust is limited to the qualified
trusts administered by the Board under the SURS defined benefit plan, the Retirement
Savings Plan, the disability benefit program for Retirement Savings plan
participants provided under Section 15-103.3 of the Code; pension,
profit-sharing and stock bonus trusts or custodial accounts qualifying under
IRC section 501(a); individual retirement accounts that are exempt under IRC
section 408(e); eligible governmental plan trusts or custodial accounts under
IRC section 457(b) that are exempt under IRC section 457(g); custodial accounts
under IRC section 403(b)(7); retirement income accounts under IRC section 403(b)(9);
and IRC section 401(a)(24) governmental plans. Each Participating Trust must
adopt the terms of this Section by reference in its enabling statute, rules or
plan document, as the case may be, and transfer all or any part of its assets
to the Group Trust. This Section shall serve as the adopting instrument under
which the SURS defined benefit plan and the disability benefit program for
Retirement Savings Plan participants provided under Section 15-103.3 of the
Code shall participate in the Group Trust.
h) Qualified
Status of Participating Trusts. Each Participating Trust must satisfy the
qualification requirements as a qualified governmental pension plan under IRC sections
401(a) and 414(d) or a trust, a custodial account, or similar entity that is
tax exempt under IRC section 408(e) or IRC section 501(a) (or is treated as tax
exempt under IRC section 501(a)). A Participating Trust that is an IRC section
401(a)(24) governmental plan is treated as meeting this requirement if it is
not subject to federal income taxation. A Participating Trust shall be deemed
to satisfy this subsection (h) if it has a current determination letter issued
by the Internal Revenue Service.
i) Contributions.
The Board shall accept transfers of assets only from the Participating Trusts
and the plan sponsors of those Participating Trusts and not from any other
person except as permitted by law. However, the Board shall also accept cash
payments, rollovers, or plan-to-plan transfers for a purchase of service credit
by a participant of a Participating Trust in accordance with the terms of the
plan. The Board may accept assets in its sole discretion. The value of any
non-cash asset shall be transferred on the basis of fair market value on the
date of contribution and consistent with the terms of this Section.
j) Termination
of Participating Trust. The Board may terminate the participation of a
Participating Trust in the Group Trust by amending this Section and, in the
case of the Retirement Savings Plan, amending the plan document. In the event
of termination of the participation of a Participating Trust, the Board shall
distribute to the terminating Participating Trust its share of the Group Trust
in cash, assets or otherwise determined by the Board.
k) Termination
of Group Trust. The Board may terminate the Group Trust at any time by
amending this Section. In the event of the termination of the Group Trust, the
Board shall distribute to each Participating Trust its share of the Group Trust
in cash, assets or otherwise as determined by the Trustee.
l) Valuation
of Assets upon Distribution. In all cases, at no time prior to the
satisfaction of all liabilities with respect to participants and their
beneficiaries under any Participating Trust shall that part of the corpus or
income of the Group Trust that equitably belongs to that Participating Trust be
used for, or diverted to, purposes other than for the exclusive benefit of the participants
and their beneficiaries.
m) Allocation
and Apportionment of Trust Expenses. The Board may pay reasonable trust
expenses from the Group Trust if these amounts would have been chargeable to
the Participating Trusts if incurred in their separate administration. For
each year, the Board shall determine and allocate to each Participating Trust
the reasonable and quantifiable trust expenses from the previous fiscal year
that the Board recorded as directly attributable to the Participating Trust.
Investment manager fees, custodian fees, and other investment-related fees will
be allocated based on the same proportion as the allocation of net assets to
each Participating Trust as of the last valuation date. All other remaining
expenses shall be allocated based on the same proportion as the number of total
participants of a Participating Trust on the first day of the plan year is to
the number of total participants of all Participating Trusts on the first day
of the plan year.
n) Duty
of Board. For all purposes under this Section, the Board shall discharge its
duties under this Section with the care, skill, prudence and diligence under
the circumstances then prevailing that a prudent person acting in a like
capacity and familiar with such matters would use in the conduct of an
enterprise of a like character and with like aims.
(Source: Amended at 47 Ill. Reg. 14005,
effective September 14, 2023)
| TITLE 80: PUBLIC OFFICIALS AND EMPLOYEES
SUBTITLE D: RETIREMENT SYSTEMS
CHAPTER II: STATE UNIVERSITIES RETIREMENT SYSTEM
PART 1600
UNIVERSITIES RETIREMENT
SECTION 1600.160 INFORMATION SUBMISSION DEADLINES, PENALTIES, AND SUSPENSIONS
Section 1600.160 Information
Submission Deadlines, Penalties, and Suspensions
Purpose. This
Section implements Section 15-168 of the Code, which authorizes the System to require
such information as shall be necessary for the proper operation of the system
from any participant or beneficiary or annuitant or from any current or former
employer of a participant or annuitant. Such information may include, but is
not limited to, employment contracts. [40 ILCS 5/15-168].
a) Necessary Information.
Information deemed necessary for the proper operation of the System shall
include the following categories of information. Any information requested
under this Section shall be treated as "submitted" only if the
information is complete and accurate.
1) Information necessary to
calculate, pay, or finalize any benefit claim;
2) Information necessary to
prepare a benefit estimate;
3) Information necessary to
clarify or correct information previously received;
4) Payroll reversal
information or other accounting data concerning employee earnings and
contributions; or
5) Employment history documents,
such as certification and termination reports, and other reports concerning
employment status.
b) Employer Submission
Deadlines and Penalties.
1) A "request"
for necessary information is any solicitation of information or data to be
provided in electronic format, letter, e-mail, fax, or other written
correspondence. Each item of information or data shall constitute a separate
request for information, even if multiple items are solicited on the same form
or document.
2) An employer in receipt
of a System request for necessary information shall submit the requested
information to the System within 90 calendar days after the date of the initial
request.
3) Penalty Determination.
The System may decide to assess penalties at any time after the 91st
calendar day following the date of the initial request. The determination of
whether to assess penalties shall be made on a case-by-case basis and shall be
based on the following considerations:
A) whether the delay in
submitting the information is due to factors that are beyond the employer's
control;
B) whether the employer has
exhibited repeated patterns of noncompliance within the past three years; and
C) whether the employer has
been properly notified of the need for the requested information according to
this Section.
4) Notice of Penalties. If
the System determines that penalties are to be assessed, it shall issue a
notice to the employer stating that penalties shall accrue if the necessary
information is not submitted within a 30-day grace period starting from the
date of the notice. The notice shall describe the nature of the necessary
information that has been requested. If the employer submits the necessary
information within the 30-day grace period, then no penalties shall be
assessed.
5) Penalty Billing. If the
employer fails to submit the requested information within the 30-day grace
period, then the System shall assess penalties at the rate of $250 per calendar
day counting from the 91st day after the initial request date until
the information is submitted, with a maximum penalty of $25,000 per delinquent
request. Upon the employer's submission of the necessary information or the
accrual of $25,000 in penalties per delinquent request, whichever occurs
earlier, the System shall issue the final penalty bill to the employer. The
final bill shall contain a calculation of the penalty assessment and notify the
employer of its rights to appeal the assessment within 35 days after the
billing date pursuant to Section 1600.510.
6) Payment of Penalty. The
employer shall pay the assessed penalties stated in the final bill within one
year after the date of the bill. All payments must be received within one
calendar year after receipt of the information by the System or one calendar
year of reaching the maximum penalty of $25,000, whichever occurs earlier. If
the employer fails to make complete payment within the applicable timeframe,
then the System may, after giving notice to the employer, certify the
delinquent amount to the State Comptroller, and the Comptroller shall thereupon
deduct the certified delinquent amount from State funds payable to the employer
and pay them instead to the System. [40 ILCS 5/15-168(b)]. If the employer
is a community college district, then the System may also recover any
delinquency in assessed penalties that have not been paid for more than 120
days after the one-year deadline by certifying the amount to the county
treasurer of the county in which the employer is located pursuant to Section
15-155.1(b) of the Code.
c) Participant, Annuitant,
and Beneficiary Submission Deadlines and Benefit Suspensions.
1) If a participant,
beneficiary, or annuitant fails to provide any information that is necessary
for the calculation, payment, or finalization of any benefit under Article 15
within 90 calendar days of the date of the System's request under Section
15-168(a) of the Code, then the System may immediately cease processing the
benefit and may not pay any additional benefit payment to the participant,
beneficiary, or annuitant until the requested information is provided. [40
ILCS 5/15-168(c)].
2) The System's
determination of whether to suspend benefit processing or the payment of
additional benefits due to the participant, annuitant, or beneficiary's failure
to submit necessary information shall be based on the following factors:
A) whether the delay in
submitting the information is due to factors that are beyond the participant,
annuitant, or beneficiary's control;
B) whether the participant,
annuitant, or beneficiary has exhibited repeated patterns of noncompliance
concerning other information requests; and
C) whether the participant,
annuitant, or beneficiary has been properly notified of the need for the
requested information according to this Section, such as by mail sent to the
individual's last known address on file with the System, by e-mail sent to the
individual's last known e-mail address on file, by secure message sent to the
individual's account on the SURS member website, by telephone call, or by a
combination of such notification methods.
3) Notice of Suspension.
If the System determines that benefit processing or benefit payments are to be
suspended, it shall issue a notice of suspension to
the participant, annuitant, or beneficiary who failed to submit the necessary
information that provides details about the nature of the information that is
requested and a 30-day grace period within which information must be submitted
to avoid such suspension.
4) Upon the participant,
annuitant, or beneficiary's complete and accurate submission of the necessary
information, the System shall resume benefit processing and pay any suspended
benefit payments without interest.
(Source: Added at 49 Ill. Reg. 3321, effective February
26, 2025)
SUBPART B: CONTRIBUTIONS AND SERVICE CREDIT
| TITLE 80: PUBLIC OFFICIALS AND EMPLOYEES
SUBTITLE D: RETIREMENT SYSTEMS
CHAPTER II: STATE UNIVERSITIES RETIREMENT SYSTEM
PART 1600
UNIVERSITIES RETIREMENT
SECTION 1600.200 DEFINITION OF "EMPLOYEE" FOR SURS PARTICIPATION
Section 1600.200
Definition of "Employee" for SURS Participation
Purpose and
Application. As mandated by Section 15-107(k) of the Code, this Section
provides rules for determining whether an individual is an
"employee," as defined under Section 15-107 of the Code, who is
eligible to participate in a SURS retirement program. This Section shall be
effective for employment beginning on or after January 1, 2023. Certifications
of employee status for employment that began prior to January 1, 2023, shall be
determined under a reasonable and good faith interpretation of Section 15-107
of the Code.
a) General Definition.
"Employee" means any member of the educational, administrative,
secretarial, clerical, mechanical, labor or other staff of an employer who
satisfies either the "permanent and continuous standard" under subsection
(a)(1) or the "minimum continuous duration standard" under subsection
(a)(2) and meets the "payroll standard" under subsection (a)(3). [40
ILCS 5/15-107(a)]
1) Permanent and Continuous
Standard. An individual satisfies this subsection (a)(1) if:
A) as of the date of
commencement of employment, the position is permanent, that is, it is intended
to continue indefinitely in the absence of further action by the employer in
the normal course of business or is anticipated for automatic reappointment
upon expiration of the appointment term; and
B) the position is continuous
as described in subsection (a)(4).
2) Minimum Continuous
Duration Standard.
A) An individual satisfies
the conditions of this subsection (a)(2) if:
i) as of the date of
commencement of employment, the position requires services that are expected to
be rendered over a fixed duration of at least 4 months (or 16 weeks) or one
academic term, whichever is less, measured from the employment commencement
date; and
ii) the position is
continuous as described in subsection (a)(4).
B) For purposes of
subsection (a)(2)(A), "academic term" means a portion of the academic
year during which the employer holds classes that is no shorter than 3 months
(or 12 weeks) in duration. If an employer is not an educational institution
that holds classes, then the academic term shall be 4 months (or 16 weeks) for
purposes of subsection (a)(2)(A). If services commence during a period that is
not an academic term (such as a summer session) and, pursuant to a contractual
commitment, are expected to extend into the following academic term, the period
prior to the academic term is also counted for purposes of meeting this
standard.
C) Notwithstanding
subsection (a)(2)(B), services related to accelerated courses that are taught
during a portion of the academic term but carry the same contact hour and
credit hour loads as the unaccelerated course taught over the full academic
term shall be deemed to be rendered over an academic term.
3) Payroll Standard. An
individual satisfies this subsection (a)(3) if the person:
A) receives payment for
personal services:
i) on a warrant issued
pursuant to a payroll voucher certified by an employer and drawn by the State
Comptroller upon the State Treasurer; or
ii) by an employer upon
trust, federal or other funds; or
B) is on a leave of absence
without pay.
4) Continuous Employment.
To be continuous, a position must not be irregular, intermittent or temporary.
A position must meet all the applicable requirements below to be continuous,
depending on whether it is a faculty position or a non-faculty staff position:
A) Continuous Faculty
Position. "Faculty" for purposes of this subsection (a)(4)(A) means
an individual who has an academic appointment at an educational institution (e.g.,
professor, associate professor, assistant professor, adjunct faculty or
professor, professor of practice, instructor, lecturer).
i) The faculty position
must customarily require services to be rendered on a regularly scheduled basis
that the employer deems necessary to fulfill the educational objectives of the
appointment.
ii) The faculty position
shall be deemed to be irregular or intermittent if the appointment requires
less than 10% of a full-time faculty load for the semester. The full-time
faculty load shall be defined by employer policy that is consistent with the
definition of a "full-time employee" under 26 U.S.C. 4980H and regulations
thereunder promulgated by the IRS.
iii) The faculty position is
not temporary. A position is temporary if the individual is hired by the
employer to help meet a short-term demand (e.g., completing a project of
specified short-term duration, teaching a temporary course, teaching only
during summer sessions, filling a position temporarily vacated by an employee
who is sick or on a leave of absence, if funding for the position is temporary
and renewal of that funding is not customarily sought from year to year).
B) Continuous Non-Faculty
Staff Positions. "Non-faculty staff" for purposes of this subsection
(a)(4)(B) means an individual who does not have an academic appointment at an
educational institution (e.g., academic professionals, research scientists,
technicians, clerical staff, mechanical staff, information technology staff,
housekeeping/janitorial staff).
i) The non-faculty staff
position customarily requires services to be rendered on at least a 10% of
full-time equivalent basis as defined by employer policy that is consistent
with the definition of "full-time employee" under 26 U.S.C. 4980H and
regulations thereunder promulgated by the IRS.
ii) The non-faculty staff
position is not temporary. A position is temporary if the individual is hired
by the employer to help meet a short-term demand (e.g., completing a project of
specified short-term duration, filling a position temporarily vacated by an
employee who is sick or on a leave of absence, if funding for the position is
temporary and renewal for that funding is not customarily sought from year to
year).
iii) The non-faculty staff
position has expectations of work with a particular pattern or duration.
Specifically:
• the services in the
position are not rendered solely on an "on-call" or
"as-needed" basis (e.g., on-call shuttle drivers, extra-help
employees, tutors, and driving instructors); and
• the position does not
fall within the scope of a "seasonal worker," which means a worker
who performs labor or services on a seasonal basis or retail workers employed
exclusively during holiday seasons as defined under 26 CFR 54.4980H-1(a)(39) or
29 CFR 500.20(s)(1).
b) Specific Exclusions.
1) Notwithstanding the
foregoing and as permitted under Sections 15-107(a)(1)-(7) of the Code, an
individual is not an employee under this Section if the individual:
A) is a student enrolled
in and regularly attending classes in a college or university which is an
employer, and is employed on a temporary basis at less than full time;
B) is currently receiving
a retirement annuity or a disability retirement annuity under Section 15-153.2 of
the Code from this System;
C) is on a military leave
of absence;
D) is eligible to
participate in the Federal Civil Service Retirement System and is currently
making contributions to that system based upon earnings paid by an employer;
E) is on leave of absence
without pay for more than 60 days immediately following termination of
disability benefits under Article 15 of the Code;
F) is hired after June
30, 1979 as a public service employment program participant under the Federal
Comprehensive Employment and Training Act and receives earnings in whole or in
part from funds provided under that Act; or
G) is employed on or
after July 1, 1991 to perform services that are excluded by subdivision
(a)(7)(f) or (a)(19) of Section 210 of the federal Social Security Act from the
definition of employment given in that Section (42 U.S.C. 410). [40 ILCS
5/15-107(a)]
2) In accordance with
Section 15-107(a)(7) of the Code, an individual who is employed on or after
July 1, 1991, to perform services that are excluded by subdivision (a)(7)(F) or
(a)(19) (concerning non-immigrant visa holders) of Section 210 of the
Social Security Act from the definition of employment given in that Section (42
U.S.C. 410) shall not be an employee under Section 15-107. However, an
individual who was excluded from employee status due to Section 210(a)(19) of
the Social Security Act may become an employee under this Section effective as
of the date the individual becomes a Lawful Permanent Resident, meets the
Substantial Presence Test under 26 CFR 301.7701(b)-1(c), or otherwise becomes a
U.S. person for federal income tax purposes. [40 ILCS 5/15-107(a)]
c) Certification of
Employee Status. An employer shall certify any individual who meets the
applicable eligibility conditions set forth under this Section as an employee
within the meaning of Section 15-107 by submitting a Report of Status to SURS.
An employer shall determine whether an individual is an employee under this
Section, or remains an employee under this Section, upon the occurrence and
re-occurrence of any of the following events:
1) initial hire;
2) transfer to a different
position that is substantially different in character or duration (e.g., from a
faculty to a non-faculty staff position); or
3) rehire after termination
from employment.
d) Concurrent Employment.
If an individual is concurrently employed in more than one position with the
same employer, and at least one position qualifies for employee status under
Section 15-107 of the Code as interpreted under this Section, then the other position
or positions shall also be deemed as qualifying for employee status during the
duration of the qualifying employment.
e) Reservation of Rights.
SURS reserves the right to determine whether an individual is an employee
within the meaning of Section 15-107 of the Code and this Section, including
whether a position is irregular, intermittent, or temporary under subsection
(a)(4).
f) Appeals. An individual
who is adversely affected by a determination made under this Section may file
an appeal under Section 1600.500. An employer that is adversely affected by a
determination made under this Section may file an appeal under Section
1600.510. If an individual and an employer both bring appeals concerning the
same determination of employee status, then SURS may consolidate the matters to
be heard before the Claims Panel under Section 1600.500.
(Source: Added at 46 Ill. Reg. 1883, effective January
18, 2022)
| TITLE 80: PUBLIC OFFICIALS AND EMPLOYEES
SUBTITLE D: RETIREMENT SYSTEMS
CHAPTER II: STATE UNIVERSITIES RETIREMENT SYSTEM
PART 1600
UNIVERSITIES RETIREMENT
SECTION 1600.202 RETURN TO EMPLOYMENT
Section 1600.202 Return to Employment
Purpose. This Section defines terms used in Section 15-139
of the Code [40 ILCS 5/15-139] concerning annuitants who return to employment.
a) "Annuitant",
for purposes of Section 15-139 of the Code, means a person who is receiving a
retirement annuity or who has received a lump-sum retirement benefit from SURS,
or, if the retirement annuity payment or payments have not yet been paid due to
SURS processing, a person whose retirement annuity payment period has commenced.
However:
1) a
person who has received a lump-sum retirement benefit is not an annuitant for
purposes of Section 15-139(b) of the Code; and
2) a
person who is receiving or who has received retirement benefits under the
Self-Managed Plan is not an annuitant.
b) "Compensation",
for purposes of Section 15-139(b) of the Code, means any remuneration paid by
an employer that is reportable by the employer as "wages, tips, or other
compensation" on Internal Revenue Service Form W-2, unless the remuneration
is received for serving as a member of the Illinois Educational Labor Relations
Board.
c) "Employment",
for purposes of Section 15-139(a) of the Code, means a relationship with any
employer that would qualify the annuitant as an employee under common law,
except for service as a member of the Illinois Educational Labor Relations
Board.
d) "Highest
Annual Earnings"
1) for
purposes of Section 15-139(b) of the Code, means the greater of the following:
A) The highest
aggregate earnings (as defined under Section 15-111 of the Code) paid in any 12
calendar month period, including and immediately preceding the month of
termination, or any prior 12 calendar month period ending with the same
calendar month. The 12 calendar month period shall begin on the first day of a
month and end on the last day of a month, even if earnings were paid for only a
portion of the month. For example, if an annuitant's final termination from
employment occurred on May 15, 2014, the relevant period would begin on June 1 and
end on May 31.
B) The
highest aggregate earnings (as defined under Section 15-111 of the Code) paid
in any academic year (as defined under Section 15-126.1 of the Code) prior to
retirement.
2) In
the case of an annuitant receiving reciprocal benefits under Article 20 of the
Code, "highest annual earnings" shall include earnings credits
accrued with any participating system, as defined by Section 20-108 of the
Code. The highest annual earnings shall not include any remuneration that is
assumed as earnings for any purpose under Article 15 of the Code.
e) "Reemployed",
for purposes of Section 15-139(c) of the Code, means the annuitant has
established a relationship with any employer that would otherwise qualify the
annuitant as an employee under Section 15-107 of the Code, not withstanding
Section 15-107(a)(2) of the Code; except, the employment must be on a permanent
and continuous basis or in a position in which the annuitant is expected to
serve for at least 9 months.
f) It
shall be the duty of the employer and employee to notify SURS in a timely
manner of any employment that could result in the cancellation or reduction of
the retirement annuity under Section 15-139 of the Code.
(Source: Amended at 40 Ill.
Reg. 8437, effective June 3, 2016)
| TITLE 80: PUBLIC OFFICIALS AND EMPLOYEES
SUBTITLE D: RETIREMENT SYSTEMS
CHAPTER II: STATE UNIVERSITIES RETIREMENT SYSTEM
PART 1600
UNIVERSITIES RETIREMENT
SECTION 1600.203 INDEPENDENT CONTRACTORS
Section 1600.203 Independent Contractors
Any individual claiming to be an independent contractor
exempt from participation in SURS as an employee under Section 15-107 of the
Code or from the provision governing annuitants who return to employment or
receive compensation from any employer as set forth in Sections 15-139,
15-139.1 and 15-139.5 of the Code must file Form SS-8 (Determination of
Employee Work Status for Purposes of Federal Employment Taxes and Income Tax
Withholding) with the IRS seeking confirmation of independent contractor
status. An IRS Form SS-8 independent contractor determination must be filed
with SURS before an individual can be considered to be exempt from SURS
participation as an employee or reemployed employee. The individual shall file
with SURS a copy of the IRS formal determination or information letter received
in response to the Form SS-8, which may then be used in further consideration
of the individual's independent contractor status.
(Source: Amended at 40 Ill.
Reg. 8437, effective June 3, 2016)
| TITLE 80: PUBLIC OFFICIALS AND EMPLOYEES
SUBTITLE D: RETIREMENT SYSTEMS
CHAPTER II: STATE UNIVERSITIES RETIREMENT SYSTEM
PART 1600
UNIVERSITIES RETIREMENT
SECTION 1600.205 EARNINGS SUBJECT TO WITHHOLDING AND CREDITING
Section 1600.205 Earnings Subject to Withholding and
Crediting
a) Purpose.
This Section provides guidance on which payments for compensation constitute
"earnings" under Sections 15-111 and 15-111.5 of the Code. Section
15-157 of the Code requires every participating employee to make contributions
of 8% of his or her pay to fund the benefits payable under SURS. This
contribution is deducted from the participating employee's pay on a pre-tax
basis and remitted to SURS via payroll deduction. The contributions are made
as a percentage of the participating employee's "earnings".
b) Definition.
"Earnings", defined under Section 15-111 of the Code, is an amount
paid for personal services equal to the sum of the basic compensation plus
extra compensation for summer teaching, overtime and other extra service,
subject to the following:
1) For
periods for which an employee receives service credit under Section
15-113.1(c) or 15-113.2 of the Code, earnings are equal to the basic
compensation on which contributions are paid by the employee during such
periods.
2) Earnings
shall include the basic compensation on which employee contributions required
under Section 15-157 of the Code are paid by the employee for periods of
furlough as provided under Section 15-113.11 of the Code.
3) Earnings
shall include the amount of a voluntary pay reduction taken in lieu of furlough
on which employee contributions required under Section 15-157 of the Code are
paid by the employee as provided under Section 15-113.12 of the Code.
4) Compensation
for employment which is irregular, intermittent and temporary shall not be
considered earnings, unless the participant is also receiving earnings from the
employer as an employee under Section 15-107 of the Code. [40 ILCS
5/15-111(a)]
c) Tier 2 Member Earnings
Limitation
1) For
a Tier 2 member, the annual earnings shall not exceed $106,800; however, that
amount shall annually thereafter be increased by the lesser of:
A) 3% of that amount,
including all previous adjustments; or
B) one-half
the annual unadjusted percentage increase (but not less than zero) in the Consumer
Price Index-U (CPI-U) for the 12 months ending with the September
preceding each November 1, including all previous adjustments.
2) For
the purposes of this Section, CPI-U means the index published by the
Bureau of Labor Statistics of the United States Department of Labor that
measures the average change in prices of goods and services purchased by all
urban consumers, United States city average, all items, 1982-84 = 100. The new
amount resulting from each annual adjustment shall be determined by the Public
Pension Division of the Department of Insurance and made available to the
boards of the retirement systems and pension funds by November 1 of each year.
[40 ILCS 5/15-111(b)]
d) Determination of the
Purpose of the Payment
1) If
the payment is for services rendered, then the payment is earnings.
2) If
the payment is for a reason other than services rendered, it is not earnings.
3) Other
Payments
The following list does not limit SURS'
authority to determine whether any payment of compensation constitutes earnings
on a case-by-case basis.
A) Bonuses;
Awards
i) Bonuses
received by an employee that are related to services rendered for a specific
period of time, not to exceed one academic year, shall be included in earnings
subject to SURS withholding.
ii) Awards,
such as longevity of service awards or outstanding employee awards, that are
not associated with a particular time period are not subject to SURS withholding.
iii) Earnings
and basic compensation for an employee who first becomes a participant on or
after January 1, 2017 shall not include bonuses.
B) Severance
Payments, Salary/Contract Continuation Payments, Retirement Payments or
Incentives. Payments made to facilitate termination of employment or to induce
someone to retire, or not to retire, are not for services rendered, but are
made in conjunction with an employee's termination of employment or retirement
and are not earnings. These payments are also not includable in the final rate
of earnings under Section 15-112.
C) Group
Fringe Benefits. Group fringe benefits provided by the employer are not earnings.
However, employer paid premiums on employer-provided group term life insurance
in excess of $50,000 are earnings.
D) Housing
Allowance. A housing allowance, whether in the form of a direct salary payment
or as a residence in which the employee resides, is earnings. Earnings and
basic compensation for an employee who first becomes a participant on or after
January 1, 2017 shall not include housing allowances.
E) Automobile
Allowance. An automobile allowance in the form of a direct salary payment is earnings.
However, neither business use nor personal use of an employer-provided
automobile is earnings. Earnings and basic compensation for an employee who
first becomes a participant on or after January 1, 2017 shall not include vehicle
allowances.
F) Non-Qualified
Moving Expenses. Non-qualified moving expenses (see 26 USC 217) are not earnings
as they are not furnished in lieu of salary.
G) Unused
Sick Leave Paid at Termination of Employment. These payments are not earnings,
except for collectively bargained payments made in accordance with Section
15-112 of the Code.
H) Overtime. Overtime is earnings.
I) Miscellaneous
Other Benefits. Fringe benefits that are provided in lieu of salary are earnings.
Items that are not provided in lieu of salary (such as reimbursement for
out-of-pocket travel expenses, relocation expenses, etc.) are not earnings.
Items such as country club dues, tuition waivers, tickets to athletic and
performing arts events for family members of employees, and other items that
are reported as taxable income on the employee's Form W-2 are not earnings,
unless those items are a negotiated fringe benefit in lieu of salary. Earnings
and basic compensation for an employee who first becomes a participant on or after
January 1, 2017 shall not include social club dues or athletic club dues.
J) Military
Differential Wage Payments and Salary Continuation Benefits. For payments made
on or after January 1, 2009, differential wage payments, as defined under section
414(u)(12) of the IRC (26 USC 414(u)(12)), and payments to an individual who
does not currently perform services for an employer by reason of qualified
military service, as defined under section 414(u)(1) of the IRC (26 USC
414(u)(1)), to the extent those payments do not exceed the amounts the
individual would have received if the individual had continued to perform
services for the employer rather than entering qualified military service,
shall be earnings and shall be compensation paid or made available during the
limitation year for purposes of applying the limitations under section 415 of
the IRC.
K) Retroactive
Pay Settlements, Court Settlements or Judgments, or Grievance Arbitration
Settlements or Awards. The cash amount for back pay or retroactive pay under a
settlement agreement, award or order issued by a court or arbitral body for a
disputed termination of employment, suspension or demotion shall be earnings if
the agreement, award or order:
i) Excludes
from back pay any non-wage or non-salary items, such as health insurance
reimbursements, payments for medical costs, interest awards, attorneys' fees,
or damage awards;
ii) Specifies
the months to which the back pay is allocated and the amount is based on the
basic compensation (or a portion thereof) the employee would have otherwise
received during those months; and
iii) The
back pay amounts are paid to the employee within one year after the issuance of
the agreement, award or order.
L) Payment
for Unused Vacation Days. Pursuant to Section 15-112(h)(4)(iii) of the Code,
payments for unused vacation of up to 56 work days paid upon termination of
employment are earnings. Payments for unused vacation days that are paid
during employment are not earnings.
M) Payments
made under the Public Employee Disability Act [5 ILCS 345] are not earnings.
e) Earning History.
Certain earnings may be excludable from the "final rate of earnings"
determined under Section 15-112 of the Code. Earnings are always attributable
to the period when earned, not when paid. SURS reserves the right to
reallocate reported earnings to the period when earned, when this is necessary
to accurately reflect the employee's earning history.
(Source: Amended at 44 Ill.
Reg. 17714, effective October 22, 2020)
| TITLE 80: PUBLIC OFFICIALS AND EMPLOYEES
SUBTITLE D: RETIREMENT SYSTEMS
CHAPTER II: STATE UNIVERSITIES RETIREMENT SYSTEM
PART 1600
UNIVERSITIES RETIREMENT
SECTION 1600.210 CREDITING INTEREST ON PARTICIPANT CONTRIBUTIONS AND OTHER RESERVES
Section 1600.210 Crediting
Interest on Participant Contributions and Other Reserves
a) On the first of each month, participant contributions and all
other reserves, except the reserves for undistributed interest and gains and
losses on investments, shall be credited with interest at the effective rate in
accordance with subsections (b) and (c) of this Section.
b) The balance in the account at the end of the preceding fiscal
year shall be credited with one-twelfth of one year of interest at the
effective rate.
c) A participant accepting a refund shall be entitled to interest
to the first day of the month in which the refund is paid.
d) The prescribed rate of interest shall be compounded annually,
and the rate shall be determined periodically by the Board based upon the
probable average effective rate of interest on a long-term basis.
(Source: Amended at 32 Ill.
Reg. 16515, effective September 25, 2008)
| TITLE 80: PUBLIC OFFICIALS AND EMPLOYEES
SUBTITLE D: RETIREMENT SYSTEMS
CHAPTER II: STATE UNIVERSITIES RETIREMENT SYSTEM
PART 1600
UNIVERSITIES RETIREMENT
SECTION 1600.220 ELECTION TO MAKE CONTRIBUTIONS COVERING LEAVE OF ABSENCE AT LESS THAN 50% PAY
Section 1600.220 Election to
Make Contributions Covering Leave of Absence at Less Than 50% Pay
a) A participant may elect to pay contributions covering leaves
of absence at less than 50% pay, except military leave and periods of
disability leave in excess of 60 days, if the participant pays the
contributions required by the Code in accordance with this Section upon the
participant's basic compensation on the date the leave begins. In order to pay
contributions covering such leaves of absence, the participant must:
1) return to employment covered by SURS at the expiration of the
leave, or within 30 days after the termination of a disability that occurs
during the leave, and continues this employment at a percentage of time equal
to or greater than the percentage of time immediately preceding the leave of
absence for at least 8 consecutive months or a period equal to the period of
the leave, whichever is less; or
2) be precluded from meeting the foregoing conditions because of
disability or death.
b) Immediate Payment
1) The election must be filed by the later of 30 days after the
beginning date of the leave or, in the event of late notification of the leave
by the employer, 30 days after the date the participant is sent the election
form.
2) Payment of contributions must be received by 30 days after the
last day of the month for which the contributions are payable. In the event of
late notification of the payment schedule by SURS, the participant must catch
up the past due contribution within 30 days after the date he or she is sent
the payment schedule and the remainder of the contributions must be received
within the required 30 days.
c) Subsequent Payment
If a participant fails to comply with the conditions set forth in
subsection (b), he or she may purchase service and earnings credit for the
leave by paying the contributions and interest on the contributions at the
effective rate from the academic year-end in which the leave occurred.
Payments under this subsection may not be made earlier than the date on which
the participant fulfills the return from leave requirements found in Section
15-113.2 of the Code.
d) No payment may be made for service covering leaves of absence
after the date the participant dies or begins receiving a retirement annuity or
disability retirement allowance.
e) If a participant purchases service credit covering a leave of
absence but fails to meet the conditions set forth in the preceding subsections
of this Section, the payment made shall be refunded without interest.
f) Not more than 3 years of service credit for leaves of absence
in any period of 10 years may be purchased.
g) This Section is not applicable to a participant who is on
special leave of absence for service with a teacher organization.
(Source: Amended at 32 Ill.
Reg. 16515, effective September 25, 2008)
| TITLE 80: PUBLIC OFFICIALS AND EMPLOYEES
SUBTITLE D: RETIREMENT SYSTEMS
CHAPTER II: STATE UNIVERSITIES RETIREMENT SYSTEM
PART 1600
UNIVERSITIES RETIREMENT
SECTION 1600.230 ELECTION TO PAY CONTRIBUTIONS BASED UPON EMPLOYMENT THAT PRECEDED CERTIFICATION AS A PARTICIPANT
Section 1600.230 Election to
Pay Contributions Based upon Employment that Preceded Certification as a
Participant
a) A participant who meets the conditions of the Code may elect
to pay contributions plus interest on the contribution at the rate established
by the Code covering any period of employment:
1) after August 31, 1941, at one-half time or more for an
employer covered by SURS, which preceded the date that he or she became a
participant; and
2) any period of full-time employment with the United States government, the government of a state, a political subdivision of a state, or
an agency or instrumentality of any of the foregoing, that preceded the date
that he or she became a participant.
b) The participant may purchase, during the fiscal year in which
employment terminates or in which retirement annuity begins, additional service
credit for not less than ¼ year of the employment described in subsection (a).
If the participant elects to purchase credit described in subsection (a) prior
to the fiscal year in which employment terminates, he or she must purchase at
least one year of additional service credit, unless the total service credit he
or she is entitled to purchase on the basis of this employment is less than one
year. No payment may be accepted for this service after the beginning of the
annuity payment period described in Section 15-135(b) of the Code.
(Source: Amended at 32 Ill.
Reg. 16515, effective September 25, 2008)
| TITLE 80: PUBLIC OFFICIALS AND EMPLOYEES
SUBTITLE D: RETIREMENT SYSTEMS
CHAPTER II: STATE UNIVERSITIES RETIREMENT SYSTEM
PART 1600
UNIVERSITIES RETIREMENT
SECTION 1600.240 ELECTION TO MAKE CONTRIBUTIONS COVERING PERIODS OF MILITARY LEAVE PROTECTED UNDER USERRA
Section 1600.240 Election to Make Contributions Covering
Periods of Military Leave Protected under USERRA
a) Under
Section 15-157(d) of the Code, and subject to conditions and limitations as may
be specified in this Section, a participant may make other additional
contributions of such percentage of earnings or amounts as the participant
shall elect in a written notice received by the Board. Under Section 1-118 of
the Code, SURS shall comply with the requirements imposed on it by the federal
Uniformed Services Employment and Reemployment Rights Act (USERRA) (38 USC 4301
et seq.).
b) "Military
leave", as used in this Section, means periods during which a participating
employee is placed on leave by an employer for active duty in the uniformed
services of the United States while a participating employee under SURS and:
1) returns
to employment covered by SURS within the time periods and in the manner
required under 20 CFR 1002.115 , or within 30 days after the termination of a
disability that occurs during the leave; or
2) is
precluded from meeting the conditions set forth in subsection (b)(1) because of
disability or death.
c) The
participating employee may elect to make contributions to SURS for any period
of military leave or portion of the military leave designated by the participating
employee. The contributions must be made at the rates provided in Section
15-157(a) through (c) of the Code based upon the participant's rate of pay as
determined under 20 CFR 1002.267.
d) The participating
employee may make contributions while on military leave. No contributions may
be made for military leave under this Section after the earliest of the
following:
1) the beginning
of the annuity payment period;
2) the
date of receipt of a disability retirement allowance;
3) the
date of the participant's death;
4) the
date of separation from the post-military leave employment with the employer;
or
5) the
expiration of a period beginning with the date of reemployment that is no longer
than three times the period of military service, but not to exceed 5 years.
e) If
the participant makes a contribution under this Section, but is later found to
have failed to meet the conditions set forth in this Section, the contribution
made shall be refunded without interest.
f) Military
Service Prior to July 12, 2005. If a participating employee fulfilled the
applicable requirements of USERRA and subsection (b) prior to July 12, 2005,
then he or she will be deemed to have returned to employment on July 12, 2005
for purposes of subsection (d)(4).
g) Award
of Service Credit. Service credit shall be granted as required under USERRA
for military leave periods purchased under this Section.
h) Self-Managed
Plan Participants. Participating employees covered under the Self-Managed Plan
may make contributions for qualifying periods of military leave for periods
described under subsection (b) at rates provided under Sections 15-158.2(h) and
15-157 of the Code based upon the participating employee's rate of pay as
determined under 20 CFR 1002.267 (2008, no subsequent dates or editions). The
employer contributions shall be credited to the participant's account on a
pro-rated basis relative to the amount of participant contributions paid and at
the rate specified under Section 15-158.2(h) of the Code. The employer
contributions shall be credited to the participant's account within the
timeframes required under 20 CFR 1002.262 (2008, no subsequent dates or
editions) following each contribution payment made under this Section.
(Source: Amended at 32 Ill.
Reg. 16515, effective September 25, 2008)
| TITLE 80: PUBLIC OFFICIALS AND EMPLOYEES
SUBTITLE D: RETIREMENT SYSTEMS
CHAPTER II: STATE UNIVERSITIES RETIREMENT SYSTEM
PART 1600
UNIVERSITIES RETIREMENT
SECTION 1600.241 SURVIVOR BENEFITS FOR MEMBERS WHO DIE WHILE ON MILITARY LEAVE PROTECTED UNDER USERRA
Section 1600.241 Survivor Benefits for Members Who Die
While on Military Leave Protected under USERRA
For deaths occurring on or after January
1, 2007, in the case of a participant who dies while performing
"qualified military service", as defined in section 414(u) of the
IRC, any survivor or beneficiary of the participant is entitled to any
additional benefits (other than benefit accruals relating to the period of
qualified military service) provided under SURS had the participant resumed employee
status and then terminated employment on account of death.
(Source: Added at 36 Ill.
Reg. 3938, effective February 22, 2012)
| TITLE 80: PUBLIC OFFICIALS AND EMPLOYEES
SUBTITLE D: RETIREMENT SYSTEMS
CHAPTER II: STATE UNIVERSITIES RETIREMENT SYSTEM
PART 1600
UNIVERSITIES RETIREMENT
SECTION 1600.250 SICK LEAVE ACCRUAL SCHEDULE
Section 1600.250 Sick Leave Accrual Schedule
a) Under
Section 15-113.4 of the Code, SURS grants service credit for unused sick leave.
b) A participant
who retires within 60 days immediately following his or her termination with an
employer covered under SURS or other system subject to the Retirement Systems
Reciprocal Act [40 ILCS 5/20] is entitled to credit for service for that
portion of unused and unpaid sick leave earned in the course of employment.
c) The
employer must certify the number of unused and unpaid sick days consistent with
subsection (e) on the member's termination report provided to SURS, or other
form acceptable to SURS.
d) Service
credit is granted for unused and unpaid sick leave verified by the employer in
accordance with the following schedule:
1) 0-29 full calendar days
and 0-19 full work days = no service credit
2) 30-90
full calendar days and 20-59 full work days = 0.25 years of service credit
3) 91-180
full calendar days and 60-119 full work days = 0.50 years of service credit
4) 181-270
full calendar days and 120-179 full work days = 0.75 years of service credit
5) 271
or more full calendar days and 180 or more full work days = 1 year of service
credit
e) Only
uncompensated, unused sick leave earned in accordance with an employer's sick
leave accrual policy generally applicable to employees or a class of employees will
be taken into account in calculating service credit under this Section. Any
sick leave granted by an employer to facilitate the hiring, retirement,
termination, or other special circumstances of a participant will not be taken
into account in calculating service credit for retirement. Other unused benefits,
such as vacation days or personal leave days, even if converted into sick leave
under an employer's sick leave policy or contract, shall not be counted as
unused sick leave under this Section.
f) If a
participant transfers from one employer to another, the unused sick leave
credited by the previous employer will be considered in determining service to
be credited under this Section, even if the participant terminated prior to August
23, 1989 (the effective date of P.A. 86-272), so long as the subsequent
employer did not credit the participant with that sick leave from the previous
employer.
(Source: Amended at 38 Ill.
Reg. 16375, effective July 17, 2014)
| TITLE 80: PUBLIC OFFICIALS AND EMPLOYEES
SUBTITLE D: RETIREMENT SYSTEMS
CHAPTER II: STATE UNIVERSITIES RETIREMENT SYSTEM
PART 1600
UNIVERSITIES RETIREMENT
SECTION 1600.260 PART-TIME/CONCURRENT SERVICE ADJUSTMENT
Section 1600.260 Part-time/Concurrent Service Adjustment
This Section will clarify how the percentage of time
employed for each year of employment is determined for the service
adjustment under Section 15-134.1(b) of the Code. This percentage cannot
exceed 100%. The service adjustment under Section
15-134.1(b) of the Code shall not apply to a member who is a participant on
or after September 1, 2024.
a) Determine the average
monthly percent time worked.
1) Establish
the monthly full-time equivalent (FTE) earnings for each employer by dividing the
monthly earnings from that employer by the percent time the participant worked
for that employer for that month.
2) Total
the participant's earnings from all employers for that month and divide by the
highest full-time equivalent.
3) This
results in the average monthly percent time worked.
4) Example:
|
|
|
Actual
Monthly
|
|
Monthly
%
|
|
|
|
Employer
|
|
Earnings
|
|
Time
Worked
|
|
Monthly FTE
|
|
Employer #1
|
|
$200
|
|
20%
|
|
$1,000
|
|
Employer #2
|
|
$375
|
|
30%
|
|
$1,250 (highest)
|
|
Employer #3
|
|
$420
|
|
40%
|
|
$1,050
|
|
Total Actual
|
|
$995
|
|
|
|
|
Average monthly
percent time worked = 79.6% ($995 divided by $1,250)
b) Determine
the percentage of time employed for each relevant year of employment.
1) Total
the average monthly percent time worked for each month in the academic year for
which the participant had earnings.
2) Divide
this number by the total number of months during the academic year for which
the participant had earnings.
3) This
calculation results in the percentage of time employed for each year of
employment.
4) Example:
|
Average
monthly % time worked
|
|
Earnings in:
|
|
79.6
|
|
September
|
|
67.5
|
|
October
|
|
54.3
|
|
November
|
|
78.5
|
|
December
|
|
35.2
|
|
February
|
|
38.9
|
|
March
|
|
44.5
|
|
April
|
|
37.5
|
|
May
|
|
Total
436.0
|
|
8 months of earnings
|
Percentage of time employed for the
year of employment is 54.5% (436.0 divided by 8).
c) Calculate
Annuity
1) In calculating
a retirement annuity, if the participant's "percentage of time employed
for each year of employment is 50% or less for 3 or more years after September
1, 1959, service is granted for employment in excess of 3 years", in the
proportion that the percentage of time employed for each year of employment
bears to the average annual percentage of time employed during the period on
which the final rate of earnings is based. An example calculation for this
subsection (c) is:
|
Year
|
Unadjusted
Service
|
Percentage of Time
Employed
|
Adjusted Service
|
|
1
|
1.00
|
25%
|
1.00
|
|
2
|
1.00
|
25%
|
1.00
|
|
3
|
1.00
|
30%
|
1.00
|
|
4
|
1.00
|
30%/57.50%
|
0.5217
|
|
5
|
1.00
|
45%/57.50%
|
0.7826
|
|
6
|
1.00
|
50%/57.50%
|
0.8696
|
|
7
|
1.00
|
55%
|
1.00
|
|
8
|
1.00
|
60%
|
1.00
|
|
9
|
1.00
|
65%
|
1.00
|
|
|
9.00
|
|
8.1739
|
2) In
this example, the final rate of earnings are based on years 6 through 9. The
average annual percentage of time employed during the period on which the final
rate of earnings is based is 57.5%. This is the sum of years 6 through 9
percentages divided by 4.
3) Years
1 through 6 have percentages of 50% or less and must be tested for adjustment.
The participant receives 3 of these years without adjustment. To maximize the
service that is used in the calculation of the retirement annuity, those years
with the smallest percentages will be applied to the 3 years the participant
receives without adjustment. In this example, that is years 1 through 3.
Therefore, only years 4 through 6 require adjustment. To determine the
adjusted service, divide the "percentage of time employed" by the
"average annual percentage of time employed during the period on which the
final rate of earnings is based", then multiply by the unadjusted
service. If year 4's unadjusted service had been 0.50 year, the adjusted
service would have been 30%/57.5% x 0.50 = .2609.
d) The
service credit adjustment in subsection (c) is not made in determining the
participant's eligibility for a retirement annuity, disability benefits,
additional death benefits, or survivors' insurance.
(Source: Amended at 49 Ill.
Reg. 3321, effective February 26, 2025)
| TITLE 80: PUBLIC OFFICIALS AND EMPLOYEES
SUBTITLE D: RETIREMENT SYSTEMS
CHAPTER II: STATE UNIVERSITIES RETIREMENT SYSTEM
PART 1600
UNIVERSITIES RETIREMENT
SECTION 1600.270 EMPLOYER CONTRIBUTIONS FOR BENEFIT INCREASES RESULTING FROM EARNINGS INCREASES EXCEEDING 6%
Section 1600.270 Employer Contributions for Benefit
Increases Resulting from Earnings Increases Exceeding 6%
Purpose. This Section implements Section 15-155(g), (h),
(i), (j) and (k) of the Code. This Section shall not apply to benefits from
other retirement systems or pension funds payable under the Retirement Systems
Reciprocal Act (Article 20 of the Code).
a) Calculation
of the Employer Cost. This calculation is made when a monthly benefit is
calculated from the participant's final rate of earnings (FRE). The "present
value of the increase in benefits" described in Section 15-155(g), called
the "Employer Cost", will be calculated as follows:
1) The
earnings, as defined in Section 15-111 of the Code, for every academic year in
the FRE period, as defined in Section 15-112 of the Code, are adjusted on a
full-time equivalent basis.
A) 48
Month FREs and Partial Academic Years. When the final rate of earnings for a
participant is the average annual earnings during the 48 consecutive calendar
month period ending with the last day of final termination of employment, any
partial academic year at the beginning of the final rate of earnings period
will be disregarded.
B) Full-Time
Equivalent (FTE) Basis
i) SURS
will adjust earnings from an employer in a manner consistent with the percent
time employed reported by the employer.
ii) The FTE
earnings of an academic year shall equal the total earnings in the academic
year divided by the average percent time of employment.
C) Earnings
credited during periods of service purchased under Sections 15-113.1 through
15-113.7 of the Code shall be determined on a FTE basis.
D) For
the purpose of Section 15-155(g), earnings do not include payments made under a
collective bargaining agreement for unused sick leave or payments made for
unused vacation.
E) For
purposes of Section 15-155(g), earnings shall include earnings, to the extent
not established by a participant under Section 15-113.11 or 15-113.12, that
would have been paid to the participant had the participant not taken periods
of voluntary or involuntary furlough occurring on or after July 1, 2015 and on
or before June 30, 2017, or periods of voluntary pay reduction in lieu of
furlough occurring on or after July 1, 2015 and on or before June 30, 2017.
These earnings shall be reported by the employer in the format specified by the
System for this purpose.
F) For purposes of Section 15-155(g), earnings shall
exclude any earnings increase paid in an academic year beginning on or after
July 1, 2020 resulting from overload work performed in an academic year
subsequent to an academic year in which the employer was unable to offer or
allow to be conducted overload work due to an emergency declaration limiting
such activities. [40 ILCS 5/15-155(h-5)]
2) The FTE
earnings of each academic year in the FRE period are limited to 106% of the
previous academic year's FTE earnings to yield the "Capped FTE Earnings"
of each academic year.
3) The
Capped FTE Earnings of each academic year are multiplied by their respective average
percent times of employment to yield the "Capped Earnings" for each
academic year. The Capped Earnings shall be used to determine the "Capped
FRE".
4) The
"Benefit Increase" shall equal the difference between the FRE and the
Capped FRE, multiplied by the number of years of service, and further
multiplied by 2.2%.
5) The
Employer Cost equals the actuarial present value of the Benefit Increase. This
actuarial present value calculation will be made by using actuarial tables
provided by SURS' actuary from time to time. The actuarial table used will
correspond with the type of monthly benefit that is provided to the
participant. A single-life annuity table will be used when a traditional
benefit package participant has no eligible survivor at the time of retirement.
If the participant had employment with more than one employer during the final
rate of earnings period, the Employer Cost is calculated for each employer
using only the earnings with that employer. However, no Employer Cost will be
assessed among multiple, concurrent employers if the increase in total earnings
for the concurrent academic year in the FRE period does not exceed 6% over the
total earnings of the previous academic year.
b) Employer Billing
1) Billing.
Whenever it determines that a payment is or may be required under Section
15-155(g) of the Code, SURS will calculate the amount of the payment and
bill the employer for the amount. The bill will specify the calculations used
to determine the amount due.
2) Request
for Recalculation. If the employer disputes the amount of the bill, it may,
within 30 days after receipt of the bill, apply to SURS in writing for a
recalculation. The application must specify the grounds of the dispute and, if
the employer asserts the calculation is subject to Section 15-155(h) or
(i) of the Code, must include an affidavit setting forth and
attesting to all facts within the employer's knowledge that are pertinent to
the applicability of Section 15-155(h) or (i) of the Code. Upon
receiving a timely application for recalculation, SURS will review the
application and, if appropriate, recalculate the amount due.
3) Payment.
The employer contributions required under Section 15-155(g) of the Code
may be paid in the form of a lump sum within 90 days after the receipt of the
bill. If the employer contributions are not paid within 90 days after receipt
of the bill, then interest will be charged at a rate equal to SURS' prescribed
rate of interest compounded annually from the 91st day after the
receipt of the bill. Payments must be concluded within 3 years after the
employer's receipt of the bill. [40 ILCS 5/15-155(g)]
4) Appeals
of the Recalculation. The employer may appeal a recalculation pursuant to
Section 1600.510.
c) Exclusions for Earnings Increases Paid on or after June 1,
2005, but before July 1, 2011, under Section 15-155(h) of the Code
1) Grandfathering.
When assessing payment for any amount due under Section
15-155(g) of the Code, SURS will exclude earnings increases paid to
participants required under contracts or collective bargaining
agreements entered into, amended, or renewed before June 1, 2005. [40
ILCS 5/15-155(h)] These contracts are "grandfathered". For the
purposes of Section 15-155(h) of the Code:
A) A
contract or collective bargaining agreement is "entered into, amended or
renewed" on the earliest of the following:
i) the
date the governing body of the employer voted to accept the contract or
collective bargaining agreement;
ii) the
date the contract or collective bargaining agreement was executed in final form
by the parties; or
iii) the
date the parties to the contract or collective bargaining agreement reached a
tentative agreement regarding the terms of the contract or collective
bargaining agreement, provided that the tentative agreement is subsequently approved
by the governing body of the employer on or after June
1, 2005, without any changes to the terms that have the
effects described under subsection (c)(1)(B)(i) or (ii).
B) A
contract or collective bargaining agreement will not exclude earnings increases
paid under the contract or agreement if the contract or agreement is amended or
renegotiated after June 1, 2005 to have the effect of:
i) increasing
the earnings usable for the FRE (except when the increase is the result of a
salary reopener provision that was part of the contract or collective
bargaining agreement prior to June 1, 2005); or
ii) extending
the expiration date of the contract (in which case the earnings will be excluded
only through the original expiration date of the contract).
C) Miscellaneous
i) A
contract exception made by an employer for an individual shall disqualify that
individual's earnings increases from grandfathering but shall not invalidate
the grandfathering for any other persons.
ii) A
memorandum of understanding between the employer and the collective bargaining
unit to increase the credit hours available shall not invalidate the contract,
but any earnings increases because of the increased credit hours shall not be
excluded from the calculation under subsection (a), unless Section 15-155(h) or
(i) of the Code applies.
iii) When
a member has given notice to the employer of intent to retire pursuant to the
terms of a grandfathered contract or collective bargaining agreement, earnings
provided under the contract or collective bargaining agreement shall be
excluded so long as the earnings are provided to the member within four years
after the expiration date of the contract or collective bargaining agreement.
iv) Notwithstanding
the other provisions of this subsection (c)(1), earnings paid under a
grandfathered contract on or after July 1, 2011 shall not be excluded from
earnings under subsection (a).
2) Earnings
10 Years Prior to Retirement Eligibility. When
assessing payment for any amount due under Section 15-155(g) of the Code,
SURS will exclude earnings increases paid to a participant at a
time when the participant is 10 or more years from retirement eligibility under
Section 15-135 of the Code. [40 ILCS 5/15-155(h)] Earnings increases paid
in academic years preceding and including the academic year during which the
participant was 10 years from attaining earliest retirement eligibility shall
be excluded.
3) Overloads and Overtime
A) Earnings increases resulting from overload work, including a
contract for summer teaching, or overtime when the
employer has certified to SURS, and SURS has approved the certification, that:
i) in the case of overloads:
• the overload work is for the sole
purpose of academic instruction in excess of the standard number of instruction
hours for a full-time employee occurring during the academic year that the
overload is paid; and
• the earnings increases are equal
to or less than the rate of pay for academic instruction computed using the
participant's current salary rate and work schedule; and
ii) in the case of overtime, the
overtime was necessary for the educational mission. [40 ILCS 5/15-155(h)]
B) The certification shall be in the form adopted by SURS and be
signed by a duly authorized representative of the employer. The certification
must be accompanied by supporting documentation as required by the form.
C) The standard number of instruction hours for a full-time
employee shall be consistent with employer policy in force for the academic
year in which the overload earnings were earned.
4) Promotions
A) When assessing payment for any
amount due under Section 15-155(g) of the Code, SURS will exclude earnings
increases resulting from:
i) a promotion for which the employee moves from one
classification to a higher classification under the State Universities Civil
Service System;
ii) a promotion in academic rank for a tenured or tenure-track
faculty position; or
iii) a promotion that the Illinois Community College Board has
recommended in accordance with Section 15-155(k) of the Code.
B) The earnings increases referenced in subsection (c)(4)(A)
shall be excluded only if the promotion is to a position that has existed and
been filled by a member for no less than one complete academic year and the
earnings increase as a result of the promotion is an increase that results in
an amount no greater than the average salary paid for other similar positions.
[40 ILCS 5/15-155(h)]
C) The employer shall certify that the promotion is to a position
that has existed and been filled by a member for no less than one complete
academic year and the earnings increase as a result of the promotion is an
increase that results in an amount no greater than the average salary paid for
other similar positions. The certification shall be in the form adopted by SURS
and be signed by a duly authorized representative of the employer. The
certification must be accompanied by supporting documentation as required by
the form.
D) The phrase "an amount no greater than the average salary
paid for other similar positions" shall mean the midpoint of the salary
range for the position or similar positions as most recently approved by the
Merit Board of the State Universities Civil Service System or the current
average salary paid for tenured or tenure-track faculty positions in the same
department, as the case may be.
d) Exclusions for earnings increases described in Section
15-155(h) of the Code paid on or after July 1, 2011, but before July 1, 2014,
under a contract or collective bargaining agreement entered into, amended, or
renewed on or after June 1, 2005, but before July 1, 2011, under Section
15-155(i) of the Code. For the purpose of Section 15-155(i) of the Code, a
contract or collective bargaining agreement is "entered into, amended or
renewed" on the earliest of the following:
1) the
date the governing body of the employer voted to accept the contract or
collective bargaining agreement;
2) the
date the contract or collective bargaining agreement was executed in final form
by the parties; or
3) the
date the parties to the contract or collective bargaining agreement reached a
tentative agreement regarding the terms of the contract or collective
bargaining agreement, provided that the tentative agreement is subsequently
approved by the governing body of the employer on or after July 1, 2011 without
any changes to the terms that have the effect of extending the expiration date.
e) The
exclusions under subsections (c) and (d) shall not apply to earnings increases
paid after June 30, 2014.
(Source: Amended at 49 Ill.
Reg. 3321, effective February 26, 2025)
| TITLE 80: PUBLIC OFFICIALS AND EMPLOYEES
SUBTITLE D: RETIREMENT SYSTEMS
CHAPTER II: STATE UNIVERSITIES RETIREMENT SYSTEM
PART 1600
UNIVERSITIES RETIREMENT
SECTION 1600.271 EMPLOYER CONTRIBUTIONS FOR EARNINGS IN EXCESS OF THE GOVERNOR'S SALARY
Section 1600.271 Employer Contributions for Earnings in
Excess of the Governor's Salary
a) Purpose
and Applicability. This Section implements Section 15-155(j-5) of the Code.
Section 15-155(j-5) and this Section shall not apply to any participant's
earnings to the extent the employer pays the employer normal cost for those
earnings. For purposes of Section 15-155(j-5), the terms stated in subsections
(b) through (i) shall have the meanings ascribed in this Section.
b) State
Fiscal Year. The "State fiscal year" shall mean the 12-month period
beginning July 1.
c) Governor's
Salary. The "amount of the salary set by law for the Governor that is in
effect on July 1 of that fiscal year" shall be the salary for the Governor
set by law by the General Assembly as of July 1 of the State fiscal year or, in
its absence, the most recent salary for the Governor set by law by the General
Assembly.
d) Earnings
Exclusions. Earnings do not include payments made under a collective bargaining
agreement for unused sick leave or payments made for unused vacation.
e) Excess
Earnings. The "amount of earnings in excess of the amount of the salary
set for the Governor" (excess earnings) shall be equal to the difference
between the earnings and the Governor's salary as defined in subsection (c).
f) Employer
Normal Cost. The "employer normal cost" shall mean the employer
normal cost described in Section 15-155, expressed as a total percentage of
payroll, approved by the Board for the State fiscal year. This amount shall
be computed by the System on the basis of the actuarial assumptions and tables
used in the most recent actuarial valuation of the System that is available at
the time of the computation. [40 ILCS 5/15-155(j-5)]
g) Employer
Contribution Amount. The employer contribution amount shall be equal to the
excess earnings under subsection (e) multiplied by the employer normal cost
percentage under subsection (f).
h) Multiple
or Concurrent Employers. In the event that an employee has been employed by
two or more employers during a State fiscal year, earnings shall be measured
and the employer contribution amount shall be calculated on an
employer-by-employer basis.
i) Employer
Billing
1) Billing.
Whenever it determines that a payment is or may be required under Section
15-155(j-5) of the Code, the System shall calculate the amount of the payment
and bill the employer for that amount. The bill shall specify the calculation
used to determine the amount due. [40 ILCS 5/15-155(j-5)] No bills shall be
issued for de minimis employer contribution amounts that are $25 or less. The
System shall issue the bill during the September immediately following the end
of the State fiscal year to which the bill relates.
2) Request
for Recalculation. If the employer disputes the amount of the bill, it may,
within 30 days after issuance of the bill, apply to the System in
writing for a recalculation. The application must specify in detail the grounds
of the dispute. Upon receiving a timely application for recalculation, the
System shall review the application and, if appropriate, recalculate the amount
due. An employer shall be deemed to have been in receipt of the bill on
the date the bill is issued.
3) Payment.
The employer contributions required under this subsection (i) may be
paid in the form of a lump sum within 90 days after issuance of the bill. If
the employer contributions are not paid within 90 days after issuance of the
bill, then interest will be charged at a rate equal to the System's annual
actuarially assumed rate of return on investment compounded annually from the
91st day after receipt of the bill. All payments must be received
within 3 years after the issuance of the bill. [40 ILCS 5/15-155(j-5)]
4) Comptroller
Intercept. If the employer fails to make complete payment, including
applicable interest, within 3 years, then the System may, after giving notice
to the employer, certify the delinquent amount to the State Comptroller, and
the Comptroller shall deduct the certified delinquent amount from State funds
payable to the employer and pay them instead to the System. [40 ILCS
5/15-155(j-5)] In the case of an employer that is a community college
district, Section 15-155.1(b) of the Code shall also apply to delinquent
amounts including interest after the 3-year period.
5) Appeals
of the Recalculation. The employer may appeal a recalculation pursuant to
Section 1600.510.
(Source: Amended at 43 Ill. Reg. 8562,
effective July 26, 2019)
| TITLE 80: PUBLIC OFFICIALS AND EMPLOYEES
SUBTITLE D: RETIREMENT SYSTEMS
CHAPTER II: STATE UNIVERSITIES RETIREMENT SYSTEM
PART 1600
UNIVERSITIES RETIREMENT
SECTION 1600.275 EMPLOYER CONTRIBUTIONS FOR EMPLOYING AFFECTED ANNUITANTS
Section 1600.275 Employer Contributions for Employing
Affected Annuitants
a) Purpose and
Applicability
1) This
Section implements Section 15-139.5 of the Code concerning employer reporting
and contribution requirements for employing or reemploying annuitants and
affected annuitants, effective for academic years beginning on or after August
1, 2013.
2) Effective
November 19, 2013, this Section shall not apply to an annuitant if the
employer of that annuitant provides documentation to SURS that:
A) the
annuitant is employed in a status appointment position, as that term is defined
in 80 Ill. Adm. Code 250.80; and
B) due
to obligations contained under the State Universities Civil Service Act [110
ILCS 70], the employer does not have the ability to limit the earnings or
duration of employment for the annuitant while employed in the status
appointment position. [40 ILCS 5/15-139.5(j)]
b) Definitions.
For purposes of Section 15-139.5 of the Code and this Section, the following
terms shall have the meanings ascribed in this subsection (b).
1) "Academic
Year" means the 12-month period beginning on September 1. [40 ILCS
5/15-139.5(a)]
2) "Affected
Annuitant"
A) Means
an annuitant on the first day of the academic year following the academic
year in which the annuitant first met the following conditions:
i) While
receiving a retirement annuity under Article 15 of the Code, the annuitant was
employed on or after August 1, 2013 by one or more employers under that Article
and received or became entitled to receive during an academic year compensation
for that employment in excess of 40% of his or her highest annual earnings
prior to retirement; except that compensation paid from federal, corporate,
foundation, or trust funds or grants of State funds that identify the principal
investigator by name is excluded.
ii) For
the academic year containing June 1, 2015 and academic years thereafter, the
annuitant received an annualized retirement annuity under Article 15 of at
least $10,000. [40 ILCS 5/15-139.5(b)] The annualized retirement annuity
of at least $10,000 shall be a gross monthly retirement annuity of at least
$833.33 per month.
B) A
person who becomes an affected annuitant remains an affected annuitant, except
for:
i) any
period during which the person returns to active service and does not receive a
retirement annuity from SURS; or
ii) any
period on or after December 8, 2017 during which an annuitant received an
annualized retirement annuity under Article 15 of the Code that is less than
$10,000. [40 ILCS 5/15-139.5(b)]
3) "Annuitant"
means a person who is receiving a retirement annuity or, if the retirement
annuity payment or payments have not yet been paid due to SURS processing, a
person whose retirement annuity payment period has commenced. A person is not
an annuitant if he or she:
A) has
received a lump-sum retirement benefit under the Portable Benefit Package; or
B) is
receiving or has received retirement benefits under the Self-Managed Plan.
4) "Catastrophic
Incident" means an occurrence of widespread or severe damage or loss of
property resulting from any manmade or natural cause, including, but not
limited to, fire (including arson), flood, earthquake, wind, storm, explosion
or extended periods of severe inclement weather.
5) "Compensation"
means any remuneration paid by an employer that is reportable to the Internal
Revenue Service by the employer as "wages, tips, or other compensation"
on IRS Form W-2.
6) "Critical
Operations" means teaching services, medical services, student welfare
services, and any other services that are critical to the mission of the
employer. [40 ILCS 5/15-139.5(i)]
7) "Disaster"
means an event that results in the Governor declaring that a disaster exists
pursuant to Section 7 of the Illinois Emergency Management Agency Act [20 ILCS
3305/7] or an event that results in a municipality to declare that a state of
emergency exists pursuant to 65 ILCS 5/11-1-6.
8) "Employed
or Reemployed" means the employer and annuitant have entered into an
employer-employee relationship under common law and the annuitant is not an
independent contractor. For the purposes of this Section, an annuitant
whose employment by an employer extends over more than one academic year shall
be deemed to be reemployed by that employer in each of those academic years.[40
ILCS 5/15-139.5(a)]
9) "Highest
Annual Earnings" shall have the meaning ascribed in Section 1600.202(d).
10) "Retirement
Annuity" means an annuity payable under Section 15-136, 15-136.1, 15-136.3
or 15-136.4 of the Code, excluding any survivor annuitant portion of a joint
and survivor annuity.
c) Initial
Notification for Employed Annuitants. Within 60 days after the date of
employing or reemploying an annuitant, the employer shall submit notification
to the System of the following items:
1) A
summary of the contract of employment or specify the rate of compensation and
the anticipated length of employment of that annuitant [40 ILCS
5/15-139.5(a)]. If an employer enters into a new contract with an annuitant
during the same academic year of employment or reemployment, the employer shall
submit a new summary or rate of compensation and anticipated length of
employment within 60 days after the effective date of the contract. The
employer shall provide a copy of the contract upon SURS' request.
2) A
certification of whether the annuitant will be compensated from
federal, corporate, foundation,
or trust funds or grants of State funds that identify the principal
investigator by name [40 ILCS 5/15-139.5(a)].
3) Critical
Operations
A) A
certification of whether the annuitant has become an affected annuitant and:
i) if
the annuitant is an affected annuitant, whether the annuitant was employed in
order to continue critical operations in the event of either an employee's
unforeseen illness, accident, or death or a catastrophic incident or disaster;
or [40 ILCS 5/15-139.5(i)]
ii) if
the annuitant is an affected annuitant, whether the employer has certified the
annuitant as a participating employee under Section 15-139(c) of the Code.
B) If the
employment is for critical operations, the notice in this subsection (c) shall
be submitted within 5 business days after employing or reemploying the annuitant.
d) Annual
Certification of Employed Annuitants. For each employed annuitant, an employer
shall submit to SURS the following information no later than 30 days following
the conclusion of the academic year:
1) The
amount of compensation paid to the annuitant for employment in the academic
year; and
2) The
amount of compensation that comes from federal, corporate, foundation, or trust
funds or grants of State funds that identify the principal investigator by name
that has been paid to the annuitant in the academic year. [40 ILCS
5/15-139.5(a)]
e) Affected
Annuitants
1) It
is the obligation of the employer to determine whether an annuitant is an
affected annuitant before employing the annuitant. For that purpose, the
employer may require the annuitant to disclose and document his or her relevant
prior employment and earnings history. Failure of the employer to make this
determination correctly and in a timely manner or to include this determination
with the notification required under subsection (d) does not excuse the
employer from making the contribution required under subsection (g).
2) SURS
may assist the employer in determining whether a person is an affected
annuitant. SURS will inform the employer if it discovers that the employer's
determination is inconsistent with the employment and earnings information in
the System's records. [40 ILCS 5/15-139.5(c)]
f) Annuitant
and Employer Information Requests. Upon written request, SURS will provide an
annuitant or employer with the following information concerning the annuitant:
1) The annuitant's
status as an annuitant or participating employee;
2) Whether
an employer has determined and reported to SURS that the annuitant is an
affected annuitant;
3) The
annuitant's highest annual earnings;
4) The
compensation paid for the annuitant's post-retirement employment in each
academic year as reported by employers;
5) Whether
any of the annuitant's post-retirement employment or compensation has been
certified to SURS as being paid from federal, corporate, foundation, or trust
funds or grants of State funds that identify the principal investigator by
name. [40 ILCS 5/15-139.5(d)]
g) Payment of Employer
Contributions
1) Certification
of Contribution. If an employer employs or reemploys an affected annuitant in
an academic year, and no exception applies, the System shall notify the
employer and certify the amount of the contribution, which shall be equal to
12 times the amount of the gross monthly retirement annuity payable to the
annuitant for the month in which the first paid day of employment in that
academic year occurs, after any reduction in that annuity that may be imposed
under Section 15-139(b) of the Code.
2) Multiple
Employers. If an affected annuitant is employed by more than one employer
in an academic year, the employer contribution required under this Section
shall be divided among those employers in proportion to their respective
portions of the total compensation paid to the affected annuitant for that
employment during that academic year.
3) Double
Contribution Penalty
A) If SURS
determines that an employer, without reasonable justification, has failed to
make the determination of affected annuitant status correctly and in a timely
manner, or has failed to notify SURS or to correctly document or certify to SURS
any of the information required by this Section, and that failure results in a
delayed determination by SURS that a contribution is payable under this
Section, then the amount of that employer's contribution otherwise determined
under this Section shall be doubled.
B) SURS
will deem a failure to correctly determine the annuitant's status to be
justified if the employer establishes to SURS' satisfaction that the employer,
after due diligence, made an erroneous determination that the annuitant was not
an affected annuitant due to reasonable reliance on false or misleading
information provided by the annuitant or another employer, or an error in the
annuitant's official employment or earnings records. [40 ILCS
5/15-139.5(e)]
4) Payment
Deadline and Interest. The employer may pay the required contribution
without interest at any time within one year after receipt of the
certification. If the employer fails to pay within that year, then interest
shall be charged at a rate equal to SURS' prescribed rate of interest,
compounded annually from the 366th day after receipt of the
certification from SURS. Payment must be concluded within 2 years after
receipt of the certification by the employer. If the employer fails to make
complete payment, including applicable interest, within 2 years, then SURS may,
after giving notice to the employer, certify the delinquent amount to the State
Comptroller, and the Comptroller shall thereupon deduct the certified
delinquent amount from State funds payable to the employer and pay them instead
to SURS. [40 ILCS 5/15-139.5(f)] The delinquent amount shall be certified
to the Comptroller if the employer does not pay the delinquent amount within 90
days after the date on which SURS sent the notice of the delinquency to the
employer.
5) Reparticipating
Annuitants. If an employer is required to make a contribution to SURS as a
result of employing an affected annuitant and the annuitant later elects to
forgo his or her annuity in that same academic year pursuant to Section
15-139(c) of the Code, then the required contribution by the employer shall
be waived, and if the contribution has already been paid, it shall be refunded
to the employer without interest. [40 ILCS 5/15-139.5(g)]
6) Employment
for Critical Operations. Notwithstanding any other provision of this
Section to the contrary, if an employer employs an affected annuitant in order
to continue critical operations in the event of either an employee's unforeseen
illness, accident, or death or a catastrophic incident or disaster, then, for
one and only one academic year, the employer is not required to pay the
contribution set forth in Section 15-139.5 of the Code for that annuitant. [40
ILCS 5/15-139.5(i)]
7) Appeals.
The employer may appeal a certification of the contribution amount pursuant to
Section 1600.510.
(Source: Amended at 44 Ill. Reg. 17714,
effective October 22, 2020)
SUBPART C: SURVIVORS AND BENEFICIARIES
| TITLE 80: PUBLIC OFFICIALS AND EMPLOYEES
SUBTITLE D: RETIREMENT SYSTEMS
CHAPTER II: STATE UNIVERSITIES RETIREMENT SYSTEM
PART 1600
UNIVERSITIES RETIREMENT
SECTION 1600.300 EFFECTIVE BENEFICIARY DESIGNATIONS
Section 1600.300 Effective Beneficiary Designations
Purpose. Under Section 15-120 of the Code,
"beneficiary" is defined as a person or persons designated by the
participant or annuitant in the last written designation on file with the Board or, if no person so designated survives or if
no designation is on file, the estate of the participant or annuitant.
a) Definitions
1) "Last
written designation", for the purposes of Section 15-120 of the Code and
this Section, shall mean the last valid beneficiary designation on file with SURS
up to and including the date of death of the participant or annuitant.
2) "On
file", for the purposes of Section 15-120 of the Code and this Section,
shall mean a beneficiary designation that has been received and date stamped by
SURS.
3) "Member",
for the purposes of this Section, shall mean a participant or annuitant.
4) "Agent",
for the purposes of this Section, shall mean a participant's or annuitant's
agent expressly authorized to change beneficiaries pursuant to an effective
power of attorney or guardianship.
b) Original
Signature and Supporting Documentation. A beneficiary designation shall be
deemed valid only if the beneficiary designation received contains a valid
original or electronic signature of the member or an agent. An electronic
signature is valid under this Section only if executed through an electronic
signing process approved by SURS. No electronic signature is valid if a
notarized signature is required under the Code or this Part. A copy of the
power of attorney or a certified copy of the guardianship order expressly
authorizing the change of beneficiaries must accompany a beneficiary
designation executed by an agent. No beneficiary designation that designates
the attorney-in-fact or a guardian as the beneficiary shall be deemed valid
unless the terms of the power of attorney or guardianship order, respectively,
authorizes the attorney-in-fact or guardian to make gifts of the member's
property to himself or herself.
c) Disputed
Designations. If a dispute arises in the interpretation of the last written
designation or, in the opinion of SURS, the designation is ambiguous, then the
contesting beneficiaries shall seek a court determination as to the
designation's interpretation. If no beneficiary brings a court action within a
reasonable time, depending on factors including, but not limited to, delays in
obtaining paperwork and the extent to which the parties have attempted to
resolve the dispute, SURS may seek a court determination.
(Source: Amended at 44 Ill. Reg. 17714,
effective October 22, 2020)
| TITLE 80: PUBLIC OFFICIALS AND EMPLOYEES
SUBTITLE D: RETIREMENT SYSTEMS
CHAPTER II: STATE UNIVERSITIES RETIREMENT SYSTEM
PART 1600
UNIVERSITIES RETIREMENT
SECTION 1600.305 FULL-TIME STUDENT SURVIVORS INSURANCE BENEFICIARIES
Section 1600.305 Full-Time Student Survivors Insurance
Beneficiaries
a) For
purposes of 40 ILCS 5/15-145(c), a full-time student shall be one who is
enrolled in a course of study in an accredited educational institution (other
than a program of study by correspondence), and who is carrying a full-time
workload as determined by the educational institution during the regular school
year for the course of study the student is pursuing. A student who is
concurrently enrolled at more than one accredited educational institution
during the same timeframe shall be deemed to be carrying a "full-time
workload" if the combined course load equals a full-time workload as
defined by either of the accredited educational institutions attended.
b) Accredited
educational institutions include schools, colleges, universities and
post-secondary vocational institutions whose courses of study are approved by
appropriate state or federal educational accreditation authorities.
c) A
regular school year is the 8 to 9 months that includes two semester terms or
three quarter terms (or their equivalent), excluding the summer term. Terms
that begin after April 15 and end before September 16 are considered summer
terms.
d) Survivors
benefits shall be payable during the period between regular school years, such
as winter breaks or summer terms, if the benefit recipient carried a full-time
workload in the preceding semester and is enrolled for a full-time workload in
the following semester.
e) To
verify that an eligible child is a full-time student, SURS must receive a
certification signed by an official of the educational institution confirming
that the student is a full-time student as provided in subsection (a).
(Source: Amended at 44 Ill.
Reg. 17714, effective October 22, 2020)
| TITLE 80: PUBLIC OFFICIALS AND EMPLOYEES
SUBTITLE D: RETIREMENT SYSTEMS
CHAPTER II: STATE UNIVERSITIES RETIREMENT SYSTEM
PART 1600
UNIVERSITIES RETIREMENT
SECTION 1600.310 DEPENDENCY OF BENEFICIARIES
Section 1600.310 Dependency
of Beneficiaries
a) Section 15-141 of the Code grants an additional death benefit
to a beneficiary who was dependent upon the participant at the time of death.
For the purpose of this Section, a dependent is defined as one who bears toward
the participant any one of the following relationships: spouse; son, daughter,
or any other child toward whom the participant stands in loco parentis and who
is under 18 years of age; or any person who, at the time of the participant's death,
was receiving at least one-half support from the participant.
b) If a participant has designated two or more beneficiaries and,
at the time of the participant's death, any of the beneficiaries are dependent
as defined in subsection (a), the additional death benefit is payable, but only
to the dependent beneficiaries.
c) If a death benefit is payable to the estate or a trust of a participant,
and one or more of the beneficiaries of the estate or trust are dependent as
defined in subsection (a), it will be assumed that the estate or trust is a
dependent for the purpose of determining the amount of the benefit payable.
(Source: Amended at 32 Ill.
Reg. 16515, effective September 25, 2008)
| TITLE 80: PUBLIC OFFICIALS AND EMPLOYEES
SUBTITLE D: RETIREMENT SYSTEMS
CHAPTER II: STATE UNIVERSITIES RETIREMENT SYSTEM
PART 1600
UNIVERSITIES RETIREMENT
SECTION 1600.320 DISABILITY CLAIMS PROCEDURE (RENUMBERED)
Section 1600.320 Disability
Claims Procedure (Renumbered)
(Source: Section 1600.320 renumbered
to Section 1600.550 at 38 Ill. Reg. 16375, effective July 17, 2014)
| TITLE 80: PUBLIC OFFICIALS AND EMPLOYEES
SUBTITLE D: RETIREMENT SYSTEMS
CHAPTER II: STATE UNIVERSITIES RETIREMENT SYSTEM
PART 1600
UNIVERSITIES RETIREMENT
SECTION 1600.330 EVIDENCE OF AGE, PARENTAGE, AND MARITAL STATUS
Section 1600.330 Evidence
of Age, Parentage, and Marital Status
a) Whenever evidence of age
is required by the System, a birth certificate shall be required unless one
cannot be acquired. If no such record can be acquired, the following documents
will be accepted:
1) military records;
2) marriage record showing
date of birth;
3) evidence of Social
Security payments that require attainment of specific age;
4) valid passport,
permanent residency card, driver's license card, or other government-issued
form of identification; or
5) two or more documents
showing birth dates, such as, but not limited to naturalization papers,
insurance policies, school records, medical records, or religious records that
certify the date of birth, such as baptismal and bris certificates.
b) Whenever evidence of
parentage other than a birth certificate is required by the System under
Section 1-104.2 or 15-129 of the Code, submission of at least one of the
following documents shall be proof of parentage, unless one of the child's
biological parents has admitted in writing, before a
notary public, that someone other than the member is the parent, or the child
has been adopted by a person other than the member:
1) certified copy of a
court order finding the member was the natural parent of the child born out of
wedlock;
2) certified copy of a settlement
agreement which has been approved by a court for the support of a child born
out of wedlock;
3) written acknowledgment
of paternity (e.g., pleadings filed in any proceeding pending before a court,
submittals to a public agency, a document signed by the putative parent) and
evidence (e.g., cancelled checks or receipts from the other parent) that the
member contributed to the support of the child;
4) certified copy of a
court order entered pursuant to a declaratory judgment action establishing
either a support obligation or visitation rights;
5) copy of the public
record of marriage of the parents of child born out of wedlock who marry and
the putative parent acknowledges parentage in writing (e.g., pleadings filed in
any proceeding pending before a court, submittals to a public agency, a
document signed by the putative parent).
c) Whenever evidence of
marriage is required by the System, a copy of the public record of marriage or
a copy of the religious record of the marriage shall be submitted. If no such
record exists, then two or more of the following will be considered in the
determination of marital status:
1) a copy of the jointly filed federal income tax return for the year
preceding the death;
2) a notarized statement
from the individual who performed the marriage;
3) notarized statements
from at least two individuals in attendance of the marriage;
4) written certification
from the Social Security Administration of acceptance of the marriage and its
date; or
5) other documentation
found by the System that supports the legal existence
of the marriage.
d) Dissolution or
invalidity of marriage shall be proven only upon the submission of a certified
copy of the declaration or decree entered by a court of competent jurisdiction.
(Source: Added at 49 Ill. Reg. 3321, effective February
26, 2025)
SUBPART D: BENEFIT CALCULATION AND PAYMENT
| TITLE 80: PUBLIC OFFICIALS AND EMPLOYEES
SUBTITLE D: RETIREMENT SYSTEMS
CHAPTER II: STATE UNIVERSITIES RETIREMENT SYSTEM
PART 1600
UNIVERSITIES RETIREMENT
SECTION 1600.400 DETERMINATION OF FINAL RATE OF EARNINGS PERIOD
Section 1600.400 Determination of Final Rate of Earnings
Period
a) This
Section establishes a mechanism for determining the period of employment that
is used to calculate a participant's final rate of earnings. This Section is
not intended to provide guidance on any other aspect of determining the amount
of the final rate of earnings.
b) Final
Rate of Earnings for Tier 1 Members
1) For
all Tier 1 Members participating in the Traditional or Portable Benefit
Packages, SURS will calculate the average annual earnings during the 4
consecutive academic years of service in which the participant's earnings were
the highest. The academic year for a participant begins on the first day of
the fall term of his or her employer and ends on the day before the first day
of the next fall term. For example, if the first day of the employer's fall
term is August 15, then the academic year begins on August 15 and ends: on the
following August 14 if the next fall term begins August 15; August 12 if the
next fall term begins August 13; or the following August 17 if the next fall
term begins August 18. If the employer does not have an academic program
divided into terms, the academic year begins on September 1 and ends on the
following August 31. For all such Tier 1 Members, except those identified in
subsection (b)(2), the final rate of earnings will be that amount calculated
under this subsection (b)(1).
2) For a
Tier 1 Member who is paid on an hourly basis or who receives an annual salary
in installments during 12 months of each academic year, SURS will also
calculate average annual earnings during the 48 consecutive calendar month
period ending with the last day of final termination of employment. The final
rate of earnings for a participant identified under this subsection (b)(2) will
be the larger of the calculation under this subsection (b)(2) or the
calculation under subsection (b)(1).
c) Final
Rate of Earnings for Tier 2 Members means:
1) For
a Tier 2 Member who is paid on an hourly basis or who receives an annual
salary in installments during 12 months of each academic year, the average
annual earnings obtained by dividing by 8 the total earnings of the employee
during the 96 consecutive months in which the total earnings were the highest
within the last 120 months prior to termination.
2) For
any other Tier 2 Member, the average annual earnings during the 8
consecutive academic years within the 10 years prior to termination in which
the employee's earnings were the highest.
3) For
an employee with less than 96 consecutive months or 8 consecutive academic
years of service, whichever is necessary, the average earnings during his or
her entire period of service. [40 ILCS 5/15-112(b)]
d) A
participant paid on an "hourly basis" is a participant who is paid
per hour worked.
e) An
"annual salary" is a salary paid over 12 months for work to be
performed during all 12 months of the academic year. SURS will determine if a
participant receives an annual salary by looking at the period for which
services were performed, not the period over which salary payments were
received, and, in determining annual salary, will not consider payment for
summer teaching or any additional contracts for summer school, overloads, or
any other extra services. For example, an academic employee who receives a
contract to teach 9 or 10 months of the academic year, but who chooses to be
paid over 12 months, is not receiving an annual salary. For further example,
an academic employee who receives a contract to teach less than 12 months of
the academic year plus a contract to teach summer school is not receiving an
annual salary even though he or she may perform work for 12 months and be paid
over 12 months as a result of teaching summer school.
f) In
determining a participant's "earnings", the system allocates earnings
to the period in which the corresponding work was performed. Earnings are not
determined by when the payment is made. For example, a participant has a
9-month contract to teach from September through May and will be paid $90,000.
The participant has the option of receiving payment over 9 months (September
through May at $10,000 per month) or over 12 months (September through August
at $7,500 per month). The payment method chosen does not change the participant's
earnings. If the participant chooses to receive payment over 9 months or over
12 months, the earnings and the period to which they are allocated does not
change. For further example, the same participant receives a contract to teach
summer school during the following June, July and August and will be paid
$15,000. The participant has earnings during each of those 3 months of
$5,000. If the participant was receiving the prior 9-month contract payments
during the summer, as well as $5,000 each month for the summer contract, the
payments to the participant would be $12,500 during June, July and August, but
the earnings would be $5,000 in each month. For further example, if the participant
received a lump sum payment in October of $15,000 for the summer contract, that
payment is not "earnings" in October, but is "earnings"
allocated to the summer months.
g) This
Section is effective beginning March 1, 2005, with respect to Tier 1 Members.
However, a Tier 1 Member who, on March 1, 2005, is within his or her final rate
of earnings period prior to retirement may have his or her final earnings
calculated under either subsection (b)(1) or (b)(2), even if subsection (b)(2)
would not otherwise be applicable to that participant. The provisions of this
Section applicable to Tier 2 Members are effective beginning January 1, 2011.
(Source: Amended at 38 Ill.
Reg. 16375, effective July 17, 2014)
| TITLE 80: PUBLIC OFFICIALS AND EMPLOYEES
SUBTITLE D: RETIREMENT SYSTEMS
CHAPTER II: STATE UNIVERSITIES RETIREMENT SYSTEM
PART 1600
UNIVERSITIES RETIREMENT
SECTION 1600.410 TWENTY PERCENT LIMITATION ON FINAL RATE OF EARNINGS INCREASES
Section 1600.410 Twenty
Percent Limitation on Final Rate of Earnings Increases
a) Introduction.
Public Act 90-65 added to Section 15-112 of the Code a limitation on increases
in earnings for the period of time covered under the calculation of final rate
of earnings. This Section provides guidance and interpretation to the staff of
SURS in implementing Section 15-112. The 20% limitation on increases in
earnings shall consider basic compensation only to the extent actually paid in
exchange for services rendered.
b) All annual increases in earnings, as defined at Section 15-111
of the Code, by a participant during the period used in determining the final
rate of earnings of 20% or less shall be deemed to be includable in the
calculation of the final rate of earnings. No further inquiry shall be
necessary by the staff of SURS.
c) Except as otherwise provided in subsection (d), in the event
that there is an annual increase in earnings by a participant during the period
used in determining the final rate of earnings of greater than 20%, any
increase in excess of 20% shall be disregarded in calculating the final rate of
earnings.
d) Regardless of subsection (c), the following shall not be
subject to the 20% increase limitation:
1) a change in the percentage of time worked by the participant (except
that time worked in excess of 100% per employer shall be subject to the
limitation);
2) a change from a nine-month position to a 12-month position;
3) overloads or extensions, so long as the overload for which
payment is received took place during the period used for calculating the final
rate of earnings; and
4) supplemental contracts, so long as verifiable additional work
is performed pursuant to the supplemental contract, such as the teaching of a
course additional to the customary load, or performance of duties additional
to, and not in replacement of, the participant's regular duties.
e) Subsection (d)(1) shall not apply to a member who is a
participant on or after September 1, 2024. [40 ILCS 5/15-134.1(b)]
(Source: Amended at 49 Ill.
Reg. 3321, effective February 26, 2025)
| TITLE 80: PUBLIC OFFICIALS AND EMPLOYEES
SUBTITLE D: RETIREMENT SYSTEMS
CHAPTER II: STATE UNIVERSITIES RETIREMENT SYSTEM
PART 1600
UNIVERSITIES RETIREMENT
SECTION 1600.420 MAKING PRELIMINARY ESTIMATED PAYMENTS
Section 1600.420 Making
Preliminary Estimated Payments
a) SURS shall make a Preliminary Estimated Payment (PEP) to
members who qualify for a retirement annuity and file an application for that
annuity. The purpose of a PEP is to provide members with some of their
retirement income while their retirement claim is still being processed.
b) The amount of the PEP shall be based on the highest applicable
Rule described in Section 15-136 of the Code.
c) The PEP calculation will not consider unverified current year
earnings, nor unverified current year vacation payments, nor unverified
additional credit for unused and unpaid sick leave, nor unverified reciprocal
credits, nor early retirement option payments, nor additional service credit
purchased after the application for retirement annuity has been received by
SURS. Applicable taxes and insurance premiums will be deducted from the PEP.
d) Date of Payment
1) If the application for retirement annuity is received at least
90 days before the member's effective retirement date, the PEP will be paid on
the first working day of the month following the effective date of the
annuity. It will be paid each month until the retirement claim is finalized.
2) If the application for retirement annuity, or the decision of
the member under subsection (d)(3), is received less than 90 days before the
member's effective retirement date, the PEP will be paid as soon as
practicable. It will be paid each month until the retirement claim is
finalized.
3) If the member is entitled to the election under Section
15-135.1 of the Code, the member must first make or decline that election
before a PEP can be calculated.
e) Amount of Payment. SURS shall pay a PEP amount pursuant to the
following calculations applying the Rules in Section 15-136(a) of the Code:
1) If the member has reciprocal service credit, SURS will apply
Rule 2.
A) If in a reciprocal case Rule 1 is estimated to be highest, SURS
will pay 100% of the Rule 2 amount.
B) If in a reciprocal case Rule 2 is estimated to be highest, SURS
will pay 80% of the Rule 2 amount.
2) If the member has no reciprocal credits, SURS will pay 90% of
the estimated Rule 1 amount or 90% of the estimated Rule 2 amount, whichever is
higher.
3) If the member makes an election under Section 15-135.1 of the
Code, SURS will pay 100% of the estimated Rule 2 amount.
4) If the member qualifies under Section 15-136.3 of the Code,
SURS will pay the higher of $75 per month or 100% of the estimated Rule 2
amount.
5) If the member qualifies for a retirement annuity under Rule 4,
SURS will pay 90% of the Rule 4 amount.
6) If the member applies for a retirement annuity under Rule 4,
but the years of service as a police officer or firefighter have not yet been
verified by staff, SURS will pay 90% of the Rule 2 amount.
f) Once the retirement claim has been finalized, the member will
receive a check for the difference between the PEP payments and the actual
monthly benefit amount that is due to the member, retroactive to the effective
date of the member's annuity, without interest. If the PEP payments result in
an overpayment, SURS will recover the overpaid benefit from future benefits,
without interest.
g) Pursuant to Sections 15-163 and 15-168 of the
Code, if a participant or annuitant fails to provide any information that is
necessary for the calculation, payment, or finalization of the retirement claim
within 90 calendar days after the date of the System's request, then the System
may immediately cease processing the benefit and suspend the payment of any
PEPs until the requested information is provided as provided under Section
1600.160 of this Part.
(Source: Amended at 49 Ill.
Reg. 3321, effective February 26, 2025)
| TITLE 80: PUBLIC OFFICIALS AND EMPLOYEES
SUBTITLE D: RETIREMENT SYSTEMS
CHAPTER II: STATE UNIVERSITIES RETIREMENT SYSTEM
PART 1600
UNIVERSITIES RETIREMENT
SECTION 1600.430 EXCESS BENEFIT ARRANGEMENT
Section 1600.430 Excess
Benefit Arrangement
a) The Excess Benefit Arrangement of the State Universities
Retirement System of Illinois (Arrangement) is adopted effective January 1,
1995. The Arrangement is established and maintained by SURS solely for the
purpose of providing benefits for certain of its participants who participate
in SURS and whose benefits are limited by section 415 of the Internal Revenue
Code (IRC) (26 U.S.C. 415).
b) The Arrangement is adopted pursuant to the authority granted
to SURS by Section 1-116 of the Code.
c) This Arrangement is a portion of a governmental plan (as that
term is defined in IRC section 414(d) and section 3(32) of the Employee
Retirement Income Security Act of 1974, as amended (29 U.S.C. 1002)) and is
administered as a qualified governmental excess benefit arrangement pursuant to
the provisions of IRC section 415(m).
d) Accordingly, SURS adopts the Arrangement pursuant to the terms
and provisions set forth in this subsection (d):
1) Definitions. Wherever used in this Section, the following
terms shall have the meanings set forth in this subsection (d)(1):
A) "Retirement Date" means the beginning date of the
annuity payment period set forth in Section 15-135 of the Code.
B) "Arrangement" means the Excess Benefit Arrangement of
the State Universities Retirement System of Illinois.
C) "Qualified Plan" means the SURS plan at Sections
15-103.1 and 15-103.2 of the Code.
D) "Qualified Plan Retirement Benefit" means the
aggregate benefit payable to a participant pursuant to the Qualified Plan.
E) "Qualified Plan Surviving Spouse Benefit" means the
aggregate benefit payable to the Surviving Spouse of a participant pursuant to
the Qualified Plan.
F) "Supplemental Retirement Benefit" means the benefit
payable to a participant pursuant to the Arrangement by reason of his or her
termination of employment with any employer for any reason other than death.
G) "Surviving Spouse" means a person as defined at
Section 15-127 of the Code.
H) "Supplemental Surviving Spouse Benefit" means the
benefit payable to a Surviving Spouse pursuant to the Arrangement.
I) "Limitation Year" means that period for which all
calculations and determinations of benefits and contribution limits will be
made under IRC section 415 and the Arrangement. The Limitation Year shall be
the calendar year.
2) Eligibility. A participant who is eligible to receive a
Qualified Plan Retirement Benefit, the amount of which is reduced by reason of
the application to the Qualified Plan of the limitations on benefits imposed by
IRC section 415, as in effect on the date of commencement of the Qualified Plan
Retirement Benefit, or as in effect at any time thereafter, shall be eligible
to receive a Supplemental Retirement Benefit. The Surviving Spouse of such participant
shall be eligible to receive a Supplemental Surviving Spouse Benefit.
Participation in the Arrangement by a participant or Surviving Spouse shall be
mandatory and automatic upon eligibility to receive a Supplemental Retirement
Benefit or Supplemental Surviving Spouse Benefit, as applicable. Participation
shall end for any portion of a Limitation Year in which the Qualified Plan
Retirement Benefit or the Qualified Plan Surviving Spouse Benefit is not
limited by application of IRC section 415 or if all benefit obligations under
the Arrangement to the participant or Surviving Spouse have been satisfied.
3) Supplemental Retirement Benefit
A) Amount. The amount described in subsections (d)(3)(A)(i) and
(ii) shall be computed annually, based upon a Limitation Year. The Supplemental
Retirement Benefit payable to an eligible participant shall be a monthly amount
equal to the difference between subsections (d)(3)(A)(i) and (ii).
i) The monthly amount of the Qualified Plan Retirement Benefit
to which the participant would have been entitled under the Qualified Plan if the
benefit were computed without giving effect to the limitations on benefits
imposed by IRC section 415; LESS
ii) The monthly amount of the Qualified Plan Retirement Benefit
actually payable to the participant under the Qualified Plan.
B) Form of Benefit. The Supplemental Retirement Benefit payable
to a participant shall be paid in the same form under which the Qualified Plan
Retirement Benefit is payable to the participant. The participant's election
under the Qualified Retirement Benefit as to form (with the valid consent of the
Surviving Spouse when required under the Qualified Plan) shall also be
applicable to the payment of a Supplemental Retirement Benefit.
C) Commencement of Benefit. Payment of the Supplemental
Retirement Benefit to a participant shall commence on the same date as payment
of the Qualified Plan Retirement Benefit to the participant commences or as
soon as administratively practicable thereafter. Any election under the
Qualified Plan made by the participant with respect to the commencement of
payment of a Qualified Plan Retirement Benefit shall also be applicable with
respect to the commencement of payment of the Supplemental Retirement Benefit.
4) Supplemental Surviving Spouse Benefit
A) Amount. If a participant dies under circumstances in which a
Qualified Plan Surviving Spouse Benefit is payable to his or her Surviving
Spouse, and the Qualified Plan Surviving Spouse Benefit is limited by
application of IRC section 415, then a Supplemental Surviving Spouse Benefit is
payable to the Surviving Spouse as provided in this subsection (d)(4)(A). The
Supplemental Surviving Spouse Benefit payable to a Surviving Spouse shall be a
monthly amount equal to the difference between subsections (d)(4)(A)(i) and
(ii).
i) The monthly amount of the Qualified Plan Surviving Spouse
Benefit to which the surviving spouse would have been entitled under the
Qualified Plan if that benefit were computed without giving effect to the
limitations on benefits imposed by application of IRC section 415; LESS
ii) The monthly amount of the Qualified Plan Surviving Spouse
Benefit actually payable to the Surviving Spouse under the Qualified Plan.
B) Form and Commencement of Benefit. A Supplemental Surviving
Spouse Benefit shall commence and be payable in the same manner as the
Qualified Plan Surviving Spouse Benefit is paid.
5) Administration of the Arrangement
A) Administration by SURS. SURS shall be responsible for the
general operation and administration of the Arrangement and for carrying out
the provisions of the Arrangement. SURS shall have the authority to interpret the
Arrangement and to issue such policies with respect to the Arrangement as it
deems appropriate. SURS shall have the duty and responsibility to maintain
records and to make calculations and determinations of benefits under the
Arrangement. SURS regulations, interpretations, determinations, and
calculations shall be final and binding upon all persons and parties concerned.
B) General Powers of Administration. All provisions set forth in
the Qualified Plan with respect to the administrative powers and duties of
SURS, expenses of administration, and procedures for filing claims shall also
be applicable with respect to the Arrangement, including, but not limited to, the
provisions of Sections 15-185, 15-186.1, 15-187, 15-190, and 15-191 of the Code.
SURS shall be entitled to rely conclusively upon all tables, valuations,
certificates, opinions, and reports furnished by any actuary, accountant,
controller, counsel, or other person employed or engaged by SURS with respect
to the Arrangement.
6) Amendment or Termination
A) Amendment or Termination. SURS reserves the right to amend or
terminate the Arrangement when, in the sole opinion of SURS, amendment or
termination is advisable. Any amendment or termination shall be made pursuant
to a resolution of the Board and shall be effective as of the date set forth in
the resolution.
B) Effect of Amendment or Termination. No amendment or
termination of the Arrangement shall directly or indirectly deprive any current
or former participant or Surviving Spouse of all or any portion of any
Supplemental Retirement Benefit or Supplemental Surviving Spouse Benefit
payment that has commenced prior to the effective date of the amendment or
termination or that would be payable if the participant terminated employment
for any reason, including death, on that effective date.
7) General Provisions
A) Funding. A trust fund is hereby established as a valid trust
under the law of the State of Illinois, as a grantor trust of which the State
of Illinois is the grantor, within the meaning of subpart E, part I, subchapter
J, chapter 1, subtitle A of the IRC, and will be construed accordingly. This
trust fund is separate and apart from the Qualified Plan trust fund to hold
contributions of the State to pay benefits under the Arrangement. No assets of
the Qualified Plan trust fund shall be transferred to the Arrangement or
otherwise used to pay benefits under the Arrangement, and the trust funds must
be accounted for separately. All assets held in the Arrangement's trust fund,
including all State contributions, all property and rights acquired or
purchased with these amounts and all income attributable to such amounts, will
be, and remain, the general, unpledged, unrestricted assets of the
Arrangement's trust fund, and will be subject to the claims of the State's
general creditors under federal and State law in the event of insolvency, to
the extent of the State's undistributed contributions, if any. Nothing herein
will be construed to create an irrevocable trust of any kind. Income accruing
to the trust fund under the Arrangement constitutes income derived from the
exercise of an essential governmental function upon which the trust fund is
exempt from tax under IRC section 115, as well as IRC section 415(m)(1). The
Arrangement at all times shall be entirely unfunded and no provision shall at
any time be made with respect to segregating any assets of SURS, of the State
of Illinois, or of any employer for payment of any benefits under the
Arrangement. No participant, Surviving Spouse, or any other person shall have
any preferred claim on, or any beneficial interest in, any assets of the
Arrangement's trust fund, SURS, the State, or any employer by reason of the unsecured
right to receive a benefit under the Arrangement. SURS will determine an amount
necessary to pay the Supplemental Retirement Benefits and Supplemental
Surviving Spouse Benefits for each Limitation Year. The State will make monthly
contributions to the Arrangement's trust fund based upon SURS' determination.
Under no circumstances will the State's contributions to the Arrangement's
trust fund be credited to or commingled with contributions paid into and
accumulated in the Qualified Plan. No election is provided at any time to a
participant or Surviving Spouse, directly or indirectly, to defer compensation
or otherwise make contributions under the Arrangement.
B) General Conditions. Except as otherwise expressly provided in
this Section, all terms and conditions of the Qualified Plan applicable to a
Qualified Plan Retirement Benefit or a Qualified Plan Surviving Spouse Benefit
shall also be applicable to a Supplemental Retirement Benefit or a Supplemental
Surviving Spouse Benefit payable under the Arrangement. Any Qualified Plan
Retirement Benefit or Qualified Plan Surviving Spouse Benefit, or any other
benefit payable under the Qualified Plan, shall be paid solely in accordance
with the terms and conditions of the Qualified Plan and nothing in the
Arrangement shall operate or be construed in any way to modify, amend or affect
the terms and provisions of the Qualified Plan.
C) No Guaranty of Benefits. Nothing contained in the Arrangement
shall constitute a guaranty by SURS, the State, any employer, or any other
entity or person that the assets of any such entity will be sufficient to pay
any benefit under the Arrangement.
D) No Enlargement of Participant Rights. No participant or Surviving
Spouse shall have any right to a benefit under the Arrangement except in
accordance with the terms of the Arrangement. Establishment of the Arrangement
shall not be construed to give any participant the right to be retained in the
service of any employer.
E) Applicable Law. The Arrangement shall be construed and
administered under the laws of the State of Illinois.
(Source: Amended at 47 Ill.
Reg. 14005, effective September 14, 2023)
| TITLE 80: PUBLIC OFFICIALS AND EMPLOYEES
SUBTITLE D: RETIREMENT SYSTEMS
CHAPTER II: STATE UNIVERSITIES RETIREMENT SYSTEM
PART 1600
UNIVERSITIES RETIREMENT
SECTION 1600.431 INDIRECT PAYMENTS TO MINORS AND LEGALLY DISABLED PERSONS
Section 1600.431 Indirect Payments to Minors and Legally
Disabled Persons
Purpose. Sections 15-145(c), 15-190 and 15-191 of the Code
allow SURS to make indirect payments to minors and persons under legal
disability. This Section provides clarification of terms used in the statutory
provisions and sets forth the procedure for handling these indirect payments.
a) Person
Under Legal Disability. For purposes of Section 15-190 of the Illinois Pension
Code:
1) A "person
under legal disability" means a person age 18 or over who meets the
definition of a "disabled person" under Section 11a-2 of the Illinois
Probate Act of 1975 [755 ILCS 5/11a-2]. Any person acting or applying for
benefits on behalf of the person under legal disability must provide SURS with
a certified copy of a valid court order finding legal disability or an
evaluation certifying legal disability signed by a licensed physician.
2) "Guardian"
means a person who has been appointed the guardian over the property of the
person under legal disability, or the guardian's successor. Any person acting
in the capacity of guardian must provide SURS with a certified copy of the
letters of appointment.
b) Minor Recipients. For
purposes of Section 15-191 of the Illinois Pension Code:
1) "Minor"
means an unmarried person under age 18.
2) "Guardian"
means a person who has been appointed the guardian over the person or property
of the minor, or the guardian's successor, by a court. Any person acting in
the capacity of guardian must provide SURS with a certified copy of the letters
of appointment.
(Source: Added at 32 Ill.
Reg. 16515, effective September 25, 2008)
| TITLE 80: PUBLIC OFFICIALS AND EMPLOYEES
SUBTITLE D: RETIREMENT SYSTEMS
CHAPTER II: STATE UNIVERSITIES RETIREMENT SYSTEM
PART 1600
UNIVERSITIES RETIREMENT
SECTION 1600.432 INDIRECT PAYMENTS TO CHILD SURVIVORS THROUGH THE SURVIVING SPOUSE
Section 1600.432 Indirect Payments to Child Survivors
Through the Surviving Spouse
Purpose. Section 15-145(c) of the Code authorizes SURS to
pay the survivors insurance benefits of a child survivor to the surviving
spouse if the child is "in care of" the surviving spouse. This Section
defines the phrase "in care of". All references to "child"
or "surviving child" in this Section assume that the child has
fulfilled the applicable requirements under Section 15-145(c) of the Code and
this Part to become eligible for survivor insurance benefits.
a) Surviving Child under Age
18
1) A
surviving child under age 18 is "in care of" the surviving spouse if
the child has been living with the surviving spouse for at least 30 days.
2) Except
as provided in subsection (a)(3), a surviving child under age 18 who is living
apart from the surviving spouse is "in care of" the surviving spouse
if:
A) The child
lived apart from the surviving spouse for not more than 4 months, or the
current absence is not expected to last over 4 months;
B) The
child is living apart from the surviving spouse because the child is attending
school or because of the spouse's employment, but the surviving spouse makes
contributions to the child's support that enable the spouse to claim the child
as a dependent for federal income tax purposes or that provide at least 50% of
the child's support; or
C) The
child is living apart because of the child's physical or mental disability or
because of a physical disability of the surviving spouse.
3) Notwithstanding
subsection (a)(2), a surviving child who is living apart from the surviving
spouse is not "in care of" a surviving spouse if:
A) The child is living with
his or her other parent;
B) The
child is removed from the surviving spouse's custody and control by court
order;
C) The
surviving spouse has given the right to have custody and control of the child
to someone else; or
D) The
surviving spouse has been adjudicated by a court to be under a legal
disability.
b) Surviving Child Age 18
or Older
1) A
surviving child between ages 18 and 22 who is a full-time student is "in
care of" the surviving spouse if the surviving spouse makes contributions
to the child's support that enable the spouse to claim the child as a dependent
for federal income tax purposes or that provide at least 50% of the child's
support.
2) A
surviving child of age 18 or older who was dependent upon the participant or
annuitant by reason of a physical or mental disability that began prior to the
date the child attained age 18 (age 22 if a full-time student) is "in care
of" the surviving spouse if:
A) The
child has been living with the surviving spouse for at least 30 days; however,
the child is not "in care of" the surviving spouse if:
i) The
child is 18 years old or older with a mental disability, but the surviving
spouse does not actively supervise the child's activities and does not make
important decisions about the child's needs; or
ii) The
child is 18 years old or older with a physical disability, but it is not
necessary for the surviving spouse to perform personal services for the child. Personal
services are services such as dressing, feeding and managing money that the
child cannot do alone because of a disability.
B) The
surviving spouse makes contributions to the child's support that enable the
spouse to claim the child as a dependent for federal income tax purposes or
that provide at least 50% of the child's support.
(Source: Added at 32 Ill.
Reg. 16515, effective September 25, 2008)
| TITLE 80: PUBLIC OFFICIALS AND EMPLOYEES
SUBTITLE D: RETIREMENT SYSTEMS
CHAPTER II: STATE UNIVERSITIES RETIREMENT SYSTEM
PART 1600
UNIVERSITIES RETIREMENT
SECTION 1600.440 VOLUNTARY DEDUCTIONS FROM ANNUITY PAYMENTS
Section 1600.440 Voluntary Deductions from Annuity
Payments
Purpose. This Section implements procedures for voluntary
deductions from annuities and disability benefits as authorized under Section 4
of the State Salary and Annuity Withholding Act (SSAWA) [5 ILCS 365/4] and
Section 4.5 of the Voluntary Payroll Deductions Act of 1983 (VPDA) [5 ILCS
340/4.5]. The SSAWA allows a SURS annuitant receiving an annuity or disability
benefit to authorize the withholding of a portion of his or her annuity or
disability benefit for purposes enumerated in Section 4(1) through (13) of the
SSAWA. In furtherance of Section 4(12) of the SSAWA, the VPDA allows a SURS
annuitant receiving an annuity or disability benefit under Article 15 of the
Code to authorize the withholding of a portion of his or her annuity or
disability benefit for contribution to a maximum of four organizations
described in Section 3(b) and (c) of the VPDA. Upon written request of the
annuitant, SURS may deduct from the annuity or disability benefit of the
annuitant the amount specified in the voluntary deduction authorization to the
entity designated by the annuitant.
a) Written
Authorizations. The written request for voluntary annuity or disability
benefit deductions shall be made by filling out and signing a SURS-prepared
voluntary deduction authorization form, by written correspondence from the
annuitant, or by a voluntary deduction authorization form prepared by an
organization or entity authorized to solicit annuitants under the SSAWA and
VPDA.
b) Form
of Authorization. The voluntary deduction authorization form or correspondence
shall contain the following to be an effective authorization for voluntary
deductions:
1) one or more of the following purposes authorized
under the SSAWA, including the name and address of the organization or entity
to receive the deduction:
A) for purchase of United States Savings Bonds;
B) subject to restrictions under the SSAWA, for
payment of premiums on: life or accident and health insurance, as defined in
Section 4 of the Illinois Insurance Code [215 ILCS 5/4]; policies of
automobile insurance as defined in Section 143.13 of the Illinois Insurance
Code; and personal multiperil coverages commonly known as homeowner's
insurance;
C) for payment to any labor organization
designated by the employee;
D) for payment of dues to any association the
membership of which consists of State employees and former State employees;
E) for deposit in any credit union in which State
employees are within the field of membership as a result of their employment;
F) for payment to or for the benefit of an
institution of higher education by an employee of that institution;
G) for payment of parking fees at the underground
facility located south of the William G. Stratton State Office Building in
Springfield, the parking ramp located at 401 South College Street, west of the
William G. Stratton State Office Building in Springfield, or the parking
facilities located on the Urbana-Champaign campus of the University of
Illinois;
H) for voluntary payment to the State of Illinois
of amounts then due and payable to the State;
I) for investment purchases made as a participant
in College Savings Programs established pursuant to Section 30-15.8a of the
School Code [105 ILCS 5/30-15.8a];
J) for voluntary payment to the Illinois
Department of Revenue of amounts due or to become due under the Illinois Income Tax Act [35 ILCS 5];
K) for payment of optional contributions to a
retirement system subject to the provisions of the Code;
L) for contributions to organizations found
qualified by the State Comptroller under the requirements set forth in the VPDA
(this purpose must be accompanied by a deduction code issued by the State
Comptroller);
M) for payment of fringe benefit contributions to
employee benefit trust funds; (Section 4 of the SSAWA)
2) the amount to be withheld from the annuity or
disability benefit of the annuitant for each designated entity;
3) the expiration date of the authorization, if
applicable;
4) the annuitant's current mailing address; and
5) the annuitant's signature.
c) Effective Date of Authorization. The voluntary
deduction authorization shall be effective for annuities and disability
benefits according to the following schedule. An authorization is deemed
submitted when it is received and date stamped by SURS.
1) If a voluntary deduction authorization is
submitted on or before the SURS monthly benefit processing date, the
authorization shall be effective from the first day of the next calendar month
for annuities and from the last day of the same calendar month for disability
benefits.
2) If a voluntary deduction authorization is
submitted after the scheduled SURS monthly benefit processing date, the
authorization shall be effective from the first day of the calendar month
following the next calendar month for annuities and from the last day of the
next calendar month for disability benefits.
d) Deduction Increases. The annuitant may authorize
in writing increases in amounts withheld by voluntary deduction without filing
a new deduction authorization form (e.g., on account of increases in union
dues). However, prior to an increase in withholding taking effect,
written notice shall be given to SURS and to each affected annuitant by the
entity to receive the increase.
e) Termination
and Reinstatement. Effective voluntary deduction authorizations may be
terminated at any time by the annuitant by written request. Absent a written
request for termination, an effective voluntary deduction authorization is
automatically terminated upon reaching the date of expiration as indicated on
the written request for voluntary deductions. If no expiration date is
indicated, then the voluntary deduction authorization continues to be effective
for each recurring annuity or disability benefit pay period until the annuity
or disability benefit ceases. A reinstatement of a deduction subsequent to its
termination as a result of a request for termination, expiration, or cessation
of annuity or benefit must be authorized under a new voluntary deduction
authorization as prescribed under subsection (b). However, a temporary
suspension (such as a suspension due to the lack of a valid address
verification) of an annuity or disability benefit, followed by its
recommencement, does not require a new voluntary deduction authorization.
f) Deduction Limits
1) In
addition to the requirements under the SSAWA and VPDA, any organization or
entity for which a deduction authorization is submitted must have received
deduction authorizations from at least 50 SURS annuitants before the monthly
benefit processing date of the previous month.
2) Once
SURS has received effective deduction authorizations for withholding on behalf
of four organizations or entities that may receive deductions for any of the
purposes stated under subsections (b)(1)(A) through (b)(1)(K) and (b)(1)(M) of
this Section, SURS shall accept no further deduction authorization forms for
those organizations or entities from that annuitant, unless a previously
effective deduction authorization is terminated by the annuitant (or by the expiration
of the stated term of the prior authorization).
3) Once
SURS has received effective deduction authorizations for withholding on behalf
of four qualified organizations described under Section 3(b) and (c) of the
VPDA for the purpose stated under subsection (b)(1)(L) of this Section, SURS
shall accept no further deduction authorization forms for those organizations
from that annuitant, unless a previously effective deduction authorization is
terminated by the annuitant (or by the expiration of the stated term of the
prior authorization).
(Source: Amended at 32 Ill.
Reg. 16515, effective September 25, 2008)
| TITLE 80: PUBLIC OFFICIALS AND EMPLOYEES
SUBTITLE D: RETIREMENT SYSTEMS
CHAPTER II: STATE UNIVERSITIES RETIREMENT SYSTEM
PART 1600
UNIVERSITIES RETIREMENT
SECTION 1600.450 OVERPAYMENT RECOVERY
Section 1600.450 Overpayment Recovery
Purpose. Under Section 15-186.1 of the Code, SURS may
recover amounts overpaid from the recipient and/or the recipient’s estate
(collectively, "recipient"), plus interest at the effective rate from
the date of overpayment to the date of recovery, either directly or by
deducting that amount from the remaining benefits payable to the recipient at a
rate determined prudent and in the best interests of the System. This Section
establishes procedures by which SURS' authority to collect overpayments under
Section 15-186.1 is to be exercised.
a) Demand
and Statements. SURS will provide the overpaid recipient with a written demand
upon discovery of the overpayment. The written demand shall specify the total
amount of the overpayment, the month or months in which the overpayment
occurred, a description of the nature of the overpayment, the interest rate to
be assessed, and the option for installment payments or deduction from future
benefits. The written demand shall also notify the recipient of the right to
appeal and receive a hearing concerning the determination of overpayment status
in accordance with Section 1600.500. SURS will send the recipient monthly statements
indicating the overpayment balance and any installment balances and shall
continue sending monthly statements until the total amount is fully repaid or SURS
acts under subsection (c).
b) Interest.
Interest will compound monthly at 1/12 the current effective rate of interest
per month starting 35 days after the date of issuance of the written demand
until collection is completed. Notwithstanding the foregoing, interest accrual
shall be suspended during the pendency of a request for review of the overpayment
under Section 1600.500. However, if the recipient does not prevail under
administrative review, interest shall apply retroactively to the date 35 days
after the date of issuance of the written demand until collection is completed.
c) Actions
for Recovery. If the recipient has not begun repayment or has not filed an
appeal within 35 days after the written demand, or a final non-appealable
decision in favor of SURS issued subsequent to an appeal, SURS may take any, or
any combination, of the following actions, as SURS deems appropriate and
prudent, to collect the overpayment:
1) Deduct
from benefits, refunds and credits payable to the recipient. Under Section
15-185 of the Code, the Board may deduct from any benefit payable to
participants, annuitants, survivors and beneficiaries amounts owed to SURS due
to the participant's service. SURS may recover overpayments from any benefit
payable due to the participant's service, including annuity benefits, survivor
benefits, separation refunds, disability benefits and death benefits. If
anyone receiving a benefit due to the participant's service is overpaid, the
overpayment may be recovered from any current or future benefits paid to the
same person or any other person receiving benefits due to the participant's
service;
2) Engage a private
collections agent;
3) Initiate
proceedings to obtain a civil judgment by attorneys retained by SURS or through
the Attorney General;
4) Refer
the overpayment to the Debt Collection Bureau of the Illinois Department of
Revenue and/or the Illinois Debt Recovery Offset Portal (IDROP) of the Illinois
State Comptroller;
5) Coordinate
collection efforts with the State of Illinois Treasurer's Office; and/or
6) By
and through any other means permissible by law.
d) Maintenance
of Records. Records of overpayments shall be maintained for at least 36
months, except as provided under subsection (e), and shall contain the
following:
1) A description of the
cause for the overpayment;
2) Correspondence
concerning attempts to collect the overpayment; and
3) Evidence
of notice given for a hearing and review of the overpayment and any final
outcome of the hearing and review.
e) Uncollectible
Accounts Receivable. If SURS is unable to collect all or part of an
overpayment after 36 months, SURS' staff may request the Board, or its duly
authorized representative, to certify the overpayment balance as uncollectible
and no longer to be maintained as an account receivable in SURS' records. The
request shall include the documentation required under subsection (d) and
confirmation that the certification would be in the best economic interest of SURS.
In determining the best economic interest of SURS, staff shall determine
whether the total collection cost expended or anticipated will exceed the
recoupment reasonably expected. However, the following exceptions may apply:
1) SURS'
staff may deem an overpayment balance of $100 or less to be uncollectible 6
months after the date of the demand without certification by the Board;
2) SURS'
staff may request certification for an overpayment balance of more than $100
but less than $5,000 after collection efforts have elapsed for at least 12
months.
f) Reopening
Uncollectible Accounts Receivable. Overpayments certified by the Board as
uncollectible may be reopened for collection if the SURS' staff determines that
it is in the best economic interest of SURS to do so.
g) Past
Overpayments. Overpayments incurred prior to January 1, 2008 may be certified
as uncollectible under subsection (e) notwithstanding the lack of any of the
documentation required under subsection (d).
h) De Minimis Exception. Any revision or
correction of a benefit that results in a difference of $1 or less per month
for monthly payments or $10 or less for lump-sum payments shall be considered
de minimis and shall not be treated as an overpayment that is to be collected
from the recipient under this Section.
(Source: Amended at 49 Ill.
Reg. 3321, effective February 26, 2025)
| TITLE 80: PUBLIC OFFICIALS AND EMPLOYEES
SUBTITLE D: RETIREMENT SYSTEMS
CHAPTER II: STATE UNIVERSITIES RETIREMENT SYSTEM
PART 1600
UNIVERSITIES RETIREMENT
SECTION 1600.455 BENEFIT FORFEITURES RELATING TO FELONY CONVICTIONS
Section 1600.455 Benefit
Forfeitures Relating to Felony Convictions
Purpose. This
Section implements Section 15-187 of the Code concerning the forfeiture of
benefits, which provides that none of the benefits provided under
Article 15 of the Code shall be paid to any person who is convicted of any
felony relating to or arising out of or in connection with a person's service
as an employee from which the benefit derives. [40 ILCS 5/15-187]
a) Date of Conviction. The
benefits subject to forfeiture under this Section shall be limited to benefits
that are payable on or after the date on which a sentence is imposed by a court
of competent jurisdiction following a judgment or conviction of a felony. The
System shall not suspend or impair any vested right under the Code prior to the
date of such sentencing. The forfeiture under this Section shall be applied beginning on the date of the sentencing even if the
criminal conviction is appealed to an appellate court. If the conviction is
overturned on appeal by a final, non-appealable judgment, then the System shall
pay the member any previously forfeited benefits without interest. If the member
received a refund of contributions under subsection (b), only the forfeited
benefits that were payable until the date of such refund shall be paid, without
interest.
b) Refund Rights.
Notwithstanding the forfeiture of any benefit under this Section, a participant
or annuitant shall be entitled to receive a refund of any employee
contributions made under Section 15-157 of the Code, but shall not be entitled
to any employer contributions or any interest. In the case of a member of the
Retirement Savings Plan, the member shall be entitled to receive a refund of
employee contributions (adjusted for any gains and
losses up to the date of the refund), but the refund shall not include any
employer contributions (including any gains or
losses earned on those contributions).
c) Employment with
Different Employers. The conviction of a felony relating to or arising out of
or connection with a person's service earned under a particular employer shall
not be applied to service earned under a different employer that bears no relation
to the felony.
d) Multiple Positions,
Appointments, or Contracts with the Same Employer. The conviction of a felony
relating to or arising out of or in connection with service earned under a
particular employer shall cause the forfeiture of all benefits derived from all
service earned under that employer, even if the felony did not relate to, did
not arise out of, or was not in connection with other periods of service earned
under that employer.
(Source: Added at 49 Ill. Reg. 3321, effective February
26, 2025)
| TITLE 80: PUBLIC OFFICIALS AND EMPLOYEES
SUBTITLE D: RETIREMENT SYSTEMS
CHAPTER II: STATE UNIVERSITIES RETIREMENT SYSTEM
PART 1600
UNIVERSITIES RETIREMENT
SECTION 1600.460 ACCELERATED PENSION BENEFIT PAYMENT IN LIEU OF ANY PENSION BENEFIT
Section 1600.460 Accelerated Pension Benefit Payment In
Lieu of Any Pension Benefit
a) Purpose.
This Section implements Section 15-185.5 of the Code providing for an
accelerated pension benefit payment in lieu of any pension benefit, to be
referred to in this Section as the "Vested Inactive Buyout" or "VIB".
b) Definitions.
For purposes of Section 15-185.5(a) of the Code, the following terms shall have
the meanings specified in this subsection (b).
1) Eligible
Person. An eligible "person" shall mean a person who satisfies the
following conditions.
A) The person
has terminated all service, meaning the person has terminated
employee status under Section 15-107 of the Code of the code as of the date
SURS receives the VIB application and has continuously remained in non-employee
status as of the date SURS receives the election to accept the VIB offer.
B) The person
has accrued sufficient service credit to be eligible to receive a retirement
annuity under Article 15 of the Code, meaning the person must meet
the applicable retirement eligibility requirements under Section 15-135 of the
Code solely with respect to service credit as of the date SURS receives the VIB
application. For this purpose, service credit shall include only service
credited under Article 15 of the Code. No service credited at a reciprocal
retirement system or pension fund shall count under this subsection (b)(1)(B).
C) The person
has not received any retirement annuity under Article 15 of the Code,
meaning the person must not have received any retirement annuity or Preliminary
Estimated Payments as of the date SURS receives the VIB application.
D) The person
has not made the election under Section 15-185.6 of the Code.
E) The person
is not a participant in the Self-Managed Plan under Section 15-158.2 of the
Code.
2) Implementation
Date. "Implementation date" means the earliest date upon which
the Board authorizes eligible persons to begin irrevocably electing the
accelerated pension benefit payment option under Section 15-185.5 of the
Code. The Board shall endeavor to make such participation available as soon
as possible after June 4, 2018 and shall establish an implementation
date by Board resolution. [40 ILCS 5/15-185.5(a)]
3) Pension
Benefit. The "pension benefit" upon which the VIB shall be
calculated shall consist of one or more of the following benefits, as
applicable:
A) Traditional
Benefit Package
i) Tier
1 Members. Retirement benefits under the applicable provisions of Section
15-136 of the Code and, if a permanent survivor (as defined under subsection (b)(4))
exists, survivors insurance benefits under Section 15-145 of the Code, subject
to the minimum total survivors annuity payable under Section 15-146(b) of the
Code.
ii) Tier
2 Members. Retirement benefits under the applicable provisions of Section
15-136 of the Code and, if a permanent survivor (as defined under subsection (b)(4)
of this Section) exists, survivors insurance benefits under Section 15-145.1 of
the Code.
B) Portable Benefit
Package
i) Tier
1 Members. Retirement benefits based on the actuarial equivalent of a
single-life annuity described under Section 15-136.4(b) of the Code with
automatic annual increases under Section 15-136.4(l) of the Code.
ii) Tier
2 Members. Retirement benefits based on the actuarial equivalent of a
single-life annuity described under Section 15-136.4(b) of the Code with
automatic annual increases under Section 15-136(d-5) of the Code.
C) Refund
of Survivors Contributions. If the eligible person has no permanent survivor
as of the VIB application date, then the refund that would have been payable as
of the assumed retirement date under Section 15-154(c) of the Code.
D) Refund
of Additional Contributions. The refund that would be payable as of the
assumed retirement date under Section 15-154(d) of the Code, if applicable.
E) Refund
of Excess Service Credit. The refund that would be payable as of the assumed
retirement date under Section 15-154(e) of the Code for excess or waived
service credit.
F) Refund
of Police and Firefighter Contributions. The refund that would be payable as
of the assumed retirement date under Section 15-154(f) of the Code, if the
eligible person elects to waive the application of Rule 4 of Section 15-136 of
the Code.
4) Permanent
Survivor. For purposes of this Section, the term "permanent survivor"
shall mean a person who:
A) is
living as of the earlier of the assumed retirement date or the date on which
the VIB offer is issued; and
B) is the
youngest (i.e., has the longest actuarially assumed life expectancy) from among
the following:
i) a "surviving
spouse" under Section 15-127 of the Code (without regard to any one-year
minimum marriage requirement) or an "eligible spouse" under Section
15-136.4(a) of the Code (without regard to any one-year minimum marriage
requirement); or
ii) a "child"
under Section 15-129 of the Code who is unmarried and dependent upon the person
by reason of a physical or mental disability that began prior to the date the
child attained age 18.
● If the child is age 18 or
older as of the application date, the child will be deemed to be disabled on
the basis of a written certificate from one or more licensed and practicing
physicians stating that the child is unable to engage in any substantial
gainful activity by reason of any medically determinable physical or mental
impairment that can be expected to result in death or that has lasted or can be
expected to last for a continuous period of not less than 12 months. The
physician's determination of disability shall be determined in accordance with
20 CFR 416.905 through 416.911.
● If the child is under age
18 as of the application date, the child will be deemed to be disabled on the
basis of a written certificate from one or more licensed and practicing
physicians stating that the child has a medically determinable physical or
mental impairment or combination of impairments that causes marked and severe
functional limitations, and that can be expected to cause death or that has
lasted or can be expected to last for a continuous period of not less than 12
months. The physician's determination of disability shall be determined in
accordance with 20 CFR 416.905 through 416.911.
c) VIB
Application. Beginning on the implementation date, an eligible person may
apply for a VIB calculation in writing in the form prescribed by SURS, subject
to the following conditions:
1) Application
Deadline. SURS must receive the application by the
date by which an irrevocable election must be made under Section 15-185.5(b) of
the Code. However, in no event shall SURS accept an application less
than 12 months prior to the date on which the eligible person must begin
receiving Required Minimum Distributions under Section 1-116.1 of the Code and
IRC section 401(a)(9).
2) Termination
of Application
A) A
pending application shall terminate prior to SURS' receipt of the election to
receive the VIB on the earliest of the eligible person's:
i) revocation
of the application;
ii) re-employment;
iii) death;
iv) required
beginning date for Required Minimum Distributions under Section 1-116.1 of the
Code; or
v) election
to receive an Automatic Annual Increase Buyout (AAI Buyout) under Section
15-185.6 of the Code and Section 1600.461 of this Part.
B) No
election to accept a VIB offer shall be effective upon or after the termination
of a pending application.
C) The
eligible person may not withdraw or revoke a pending application as of the date
SURS receives the completed VIB election form.
3) Other
Benefits. The eligible person may not apply for a refund, disability benefit,
or disability retirement annuity while a VIB application is pending.
d) VIB Offer Amount. After receipt of a VIB
application, SURS shall calculate the VIB offer amount as soon as practicable.
The VIB offer amount shall be 60% of the present value of the applicable
pension benefit payable as of the assumed retirement date. The calculation
shall be subject to the following conditions:
1) Actuarial
Assumptions
A) All
actuarial tables used to calculate the VIB offer amount shall use actuarial
assumptions most recently adopted by the Board as of the time of the
calculation.
B) The
present value date shall be the first of the month on or immediately following
the date that SURS receives the VIB application.
C) The
discount rate used to calculate the present value of any benefit shall be the
prescribed rate of interest.
D) The
effective rate of interest for fiscal years prior to the fiscal year containing
the date of the calculation shall be the historical rates set by the Board or
the State Comptroller, as applicable. The effective rate of interest for
fiscal years inclusive of and after the fiscal year containing the date of the
calculation shall be the last known effective rate of interest set by the Board
or the State Comptroller, as applicable.
2) Service Credit
A) All
service credit purchases must have been completed by the date SURS receives the
VIB application.
B) Service
credit for unused, unpaid sick leave under Section 15-113.4 of the Code shall
apply only if the eligible person was an employee within 60 days immediately
preceding the assumed retirement date.
3) Assumed
Retirement Date. The assumed retirement date shall be the retirement annuity
commencement date determined as follows.
A) If the
eligible person has attained the earliest applicable retirement age under
Section 15-135 of the Code as of the date SURS receives the VIB application,
the VIB offer amount shall be based on a retirement annuity that commences on
the first of the month on or immediately following the date that SURS receives
the VIB application (subject to any applicable early age reductions under
Section 15-136 of the Code).
B) If the
eligible person has not attained the earliest applicable retirement age under
Section 15-135 of the Code as of the date SURS receives the VIB application,
the VIB offer amount shall be based on a retirement annuity that commences on
the first of the month following the birthday on which the person will have
attained the earliest applicable retirement age under Section 15-135 of the
Code (subject to any applicable early age reductions under Section 15-136 of
the Code).
4) Survivor
Benefits. The assumed dates of death of the eligible person and eligible
permanent survivor with respect to any assumed survivor benefit shall be based
on the most recent mortality assumptions adopted by the Board as of the date of
the calculation.
5) Frequency.
No more than one VIB offer amount shall be calculated in a State fiscal year.
6) Appeals.
An eligible person may seek an appeal of the calculation of the VIB offer
amount within 35 days after the issuance of the offer, in accordance with
Section 1600.500.
e) VIB
Election. The election to accept the VIB offer shall be made in the manner and
form prescribed by SURS. SURS may require additional documentation or proof to
verify any fact or record necessary for the administration of the election.
1) Election
Deadline. The eligible person shall elect to accept the VIB offer within 120
days after the date the VIB offer was issued. If no election is submitted by
the deadline, the eligible person shall be deemed to have rejected the VIB
offer.
2) Election
Date. The date of the election to accept the VIB offer shall be the date SURS
receives the completed VIB election form.
3) Survivor
Consent. The election shall be accompanied by written and notarized consent of
any permanent survivor. If a permanent survivor who was identified in the VIB
application no longer qualifies as a permanent survivor, then the election
shall be, instead, accompanied by documentation proving the disqualifying
condition as follows:
A) Death.
Death shall be proven by a certified copy of the death certificate.
B) Divorce.
A dissolution of marriage shall be proven by a certified copy of the judgment
of dissolution of marriage or civil union.
C) Child's
Non-Disability. A child's non-disability shall be proven by a written
certificate from one or more licensed and practicing physicians stating that
the child is no longer disabled under subsection (b)(4)(B)(ii).
4) Effect
of Acceptance. Upon SURS' receipt of the election to accept the VIB offer
amount, the eligible person shall be subject to the following conditions:
A) The
election to accept the VIB offer shall be irrevocable unless:
i) the
State Comptroller fails to remit the full VIB amount to SURS within a year
after SURS has submitted a voucher under Section 15-185.5(f) of the Code; or
ii) SURS
has knowledge of specific and articulable facts, taken together with rational
inferences from those facts, that would lead a reasonable person to believe
that the election to accept the VIB was made under fraud, duress, undue
influence, illegality or incapacity.
B) The
eligible person may not elect to proceed under the Retirement Systems
Reciprocal Act [40 ILCS 5/Art. 20] with respect to any service to which the VIB
pertains.
C) The
eligible person may not purchase service credit under Article 15 of the Code
with respect to any service credit attributable to the VIB or any accelerated
pension benefit payment under Section 14-147.5, 14-147.6, 16-190.5 or 16-190.6
of the Code.
D) The
eligible person shall no longer be a participant of SURS and forfeits all
accrued rights and credits in SURS and no other benefit shall be paid under
Article 15 based on those forfeited rights and credits, including any
retirement, survivor or other benefit; except, to the extent that
participation, benefits or premiums under the State Employees Group Insurance
Act of 1971 [5 ILCS 375] are based on the amount of service credit.
E) The
VIB may not be repaid to SURS, and the forfeited rights and credits may not
under any circumstances be reinstated.
F) If
the eligible person returns to participation under Article 15, any benefits
under SURS earned as a result of that return to participation shall be based
solely on the person's credits and creditable service arising from the return
to participation. Upon return to participation, the person shall be considered
a new employee subject to all the qualifying conditions for participation and
eligibility for benefits applicable to new employees, except the person shall
retain the same Tier status and program elections previously made under Section
15-134.5 of the Code.
G) An
election to accept the VIB offer shall be deemed to be a waiver of any appeal
rights under Section 1600.500 with respect to the VIB.
f) VIB Voucher and Payment
1) As
soon as administratively practicable after SURS' receipt of the election to
accept the VIB offer, SURS shall submit one or more vouchers to the State
Comptroller for the payment of the VIB. SURS shall pay the VIB as soon as
administratively practicable after SURS' receipt of the VIB amount from the
State Comptroller. In no event shall SURS pay the VIB without having received
the amounts sufficient to pay the VIB in full from the State Comptroller.
2) The
VIB shall be paid in the form of a direct rollover to an "eligible
retirement plan" as defined under Section 1600.140(h)(6) (including any
supplemental defined contribution plan administered by SURS) to the extent
permissible under IRC section 401(a)(31), except for any amounts attributable
to Required Minimum Distributions under Section 1-116.1 of the Code or amounts
paid under the Excess Benefit Arrangement under Section 1600.430 of this Part.
The eligible person may not elect to receive any portion of the direct rollover
as cash.
3) If
the eligible person dies after having elected to accept the VIB offer amount,
but prior to payment of the VIB, the VIB shall be payable to the eligible
person's estate.
(Source: Amended at 49 Ill. Reg. 3321,
effective February 26, 2025)
| TITLE 80: PUBLIC OFFICIALS AND EMPLOYEES
SUBTITLE D: RETIREMENT SYSTEMS
CHAPTER II: STATE UNIVERSITIES RETIREMENT SYSTEM
PART 1600
UNIVERSITIES RETIREMENT
SECTION 1600.461 ACCELERATED PENSION BENEFIT PAYMENT FOR A REDUCTION AND DELAY IN AAI
Section 1600.461 Accelerated Pension Benefit Payment for
a Reduction and Delay in AAI
a) Purpose.
This Section implements Section 15-185.6 of the Code providing for an
accelerated pension benefit payment for a reduction and delay in an automatic
annual increase (AAI) to a retirement annuity and an annuity benefit payable as
a result of death, to be referred to in this Section as the "AAI Buyout".
b) Definitions.
For purposes of Section 15-185.6(a) of the Code, the following terms shall have
the meanings specified in this subsection (b).
1) Eligible
Person. An "eligible person" shall mean a person who satisfies the
following conditions:
A) The person
is a Tier 1 member.
B) The person
has submitted an application for a retirement annuity under Article 15 of
the Code.
C) The person
has met the age and service requirement for receiving a retirement annuity under
Article 15 of the Code, meaning the person must meet the applicable
retirement eligibility requirements under Section 15-135 of the Code with
respect to age and service credit accrued under Article 15 of the Code and, if
the person elects to retire under the Retirement Systems Reciprocal Act, any
service credit of a participating reciprocal system.
D) The person
has not received any retirement annuity under Article 15 of the Code,
meaning the retirement date specified in the retirement application cannot be
prior to the date SURS receives the application for a retirement annuity.
E) The person
has not made the election under Section 15-185.5 of the Code.
F) The person
is not a participant in the Self-Managed Plan under Section 15-158.2 of the Code.
2) Implementation
Date. "Implementation date" means the earliest date upon which
the Board authorizes eligible persons to begin irrevocably electing the
accelerated pension benefit payment option under Section 185.6 of the Code.
The Board shall endeavor to make such participation available as soon as
possible after June 4, 2018 and shall establish an implementation date
by Board resolution. [40 ILCS 5/15-185.6(a)]
3) Assumed
Annuities. The AAI Buyout shall be based on one or more of the following
assumed annuities, as applicable:
A) Traditional
Benefit Package. Retirement benefits under the applicable provisions of
Section 15-136 of the Code and, if a permanent survivor (as defined under subsection
(b)(4)) exists, survivors insurance benefits under Section 15-145 of the Code,
subject to the minimum total survivors annuity payable under Section 15-146(b)
of the Code.
B) Portable
Benefit Package. Retirement benefits based on the actuarial equivalent of a
single-life annuity described under Section 15-136.4(b) of the Code.
4) Permanent
Survivor. For purposes of this Section, the term "permanent survivor"
shall mean a person who:
A) is
living as of the earlier of the assumed retirement date or the date on which
the AAI Buyout offer is issued; and
B) is the
youngest (i.e., has the longest actuarially assumed life expectancy) from among
the following:
i) a "surviving
spouse" under Section 15-127 of the Code (without regard to any one-year
minimum marriage requirement); or
ii) a "child"
under Section 15-129 of the Code who is unmarried and dependent upon the person
by reason of a physical or mental disability which began prior to the date the
child attained age 18.
● If the child is age 18 or
older as of the application date, the child will be deemed to be disabled on
the basis of a written certificate from one or more licensed and practicing
physicians stating that the child is unable to engage in any substantial
gainful activity by reason of any medically determinable physical or mental
impairment that can be expected to result in death or that has lasted or can be
expected to last for a continuous period of not less than 12 months. The
physician's determination of disability shall be determined in accordance with
20 CFR 416.905 through 416.911.
● If the child is under age
18 as of the application date, the child will be deemed to be disabled on the
basis of a written certificate from one or more licensed and practicing
physicians stating that the child has a medically determinable physical or
mental impairment or combination of impairments that causes marked and severe
functional limitations, and that can be expected to cause death or that has
lasted or can be expected to last for a continuous period of not less than 12
months. The physician's determination of disability shall be determined in
accordance with 20 CFR 416.905 through 416.911.
c) AAI
Buyout Application. Beginning on the implementation date, an eligible person
may apply for an AAI Buyout calculation in writing in the form prescribed by
SURS, subject to the following conditions:
1) Application
Deadline. SURS must receive the AAI Buyout application by the retirement date
specified on the completed retirement application, which can be no later than the date until which the System is required to implement
the AAI Buyout under Section 15-185.6(b) of the Code.
2) Termination
of Application
A) A
pending application shall terminate on the earliest of the eligible person's:
i) revocation
of the application;
ii) cancellation
or suspension of the retirement annuity under Section 15-139 of the Code;
iii) death;
or
iv) an
election to receive a Vested Inactive Buyout under Section 15-185.5 of the Code
and Section 1600.460 of this Part.
B) No
election to accept an AAI Buyout offer shall be effective upon or after the
termination of a pending application.
C) The
eligible person may not withdraw or revoke a pending application as of the date
SURS receives the completed AAI Buyout election form.
d) AAI
Buyout Offer Amount
1) After
receipt of an AAI Buyout application, SURS shall calculate the AAI Buyout offer
amount as soon as practicable.
2) The
AAI Buyout offer amount shall be 70% of the difference of:
A) the
present value of the automatic annual increases to the assumed annuities under
Sections 15-136(d), 15-136.4(l), and 15-145(j) of the Code, as applicable; and
B) the
present value of the automatic annual increases to the assumed annuities, using
the formula provided under Section 15-185.6(b-5) of the Code.
3) The
calculation shall be subject to the following conditions:
A) Actuarial
Assumptions
i) All
actuarial tables used to calculate the AAI Buyout offer amount shall use
actuarial assumptions most recently adopted by the Board as of the time of the
calculation.
ii) The
present value date shall be the retirement date.
iii) The
discount rate used to calculate the present value shall be the prescribed rate
of interest.
B) Survivor
Benefits. The assumed dates of death of the eligible person and eligible
permanent survivor or contingent annuitant, as applicable, with respect to any
assumed survivors insurance benefit or survivor portion of a joint and survivor
annuity, as applicable, shall be based on the most recent mortality assumptions
adopted by the Board as of the date of the calculation. The AAI to a survivors
insurance annuity or the survivor portion of a joint and survivor annuity, as
applicable, calculated under Section 15-185.6(b-5) of the Code, shall commence
on the January 1 occurring on or after the first anniversary of the
commencement of the survivors insurance annuity or survivor portion of a joint
and survivor annuity.
C) Frequency.
No more than one AAI Buyout offer amount shall be calculated in a State fiscal
year.
D) Appeals.
An eligible person may seek an appeal of the calculation of the AAI Buyout
offer amount within 35 days after the issuance of the offer in accordance with
Section 1600.500.
e) AAI
Buyout Election. The election to accept the AAI Buyout offer shall be made in
the manner and form prescribed by SURS. SURS may require additional
documentation or proof to verify any fact or record necessary for
administration of the election.
1) Election
Deadline. The eligible person shall elect to accept the AAI Buyout offer
within 120 days after the date the AAI Buyout offer was issued. If no election
is submitted by the deadline, the eligible person shall be deemed to have
rejected the AAI Buyout offer.
2) Election
Date. The date of the election to accept the AAI Buyout offer shall be the
date SURS receives the completed AAI Buyout election form.
3) Termination
from Employment. The eligible person must not return to work as an employee
under Section 15-107 of the Code until after the date SURS receives the
completed AAI Buyout election form.
4) Survivor
Consent. The election shall be accompanied by written and notarized consent of
any permanent survivor or contingent annuitant, as applicable. If a permanent
survivor who was identified in the AAI Buyout application no longer qualifies
as a permanent survivor, the election shall be, instead, accompanied by
documentation proving the disqualifying condition as follows:
A) Death.
Death shall be proven by a certified copy of the death certificate.
B) Divorce.
A dissolution of marriage shall be proven by a certified copy of the judgment
of dissolution of marriage or civil union.
C) Child's
Non-Disability. A child's non-disability shall be proven by a written
certificate from one or more licensed and practicing physicians stating that
the child is no longer disabled under subsection (b)(4)(B)(ii).
5) Effect
of Acceptance. Upon SURS' receipt of the election to accept the AAI Buyout
offer amount, the eligible person shall be subject to the following conditions:
A) The
election to accept the AAI Buyout offer shall be irrevocable unless:
i) the
State Comptroller fails to remit the full AAI Buyout amount to SURS within a
year after SURS has submitted a voucher under Section 15-185.6(d-5) of the Code;
or
ii) SURS
has knowledge of specific and articulable facts, taken together with rational
inferences from those facts, that would lead a reasonable person to believe
that the election to accept the AAI Buyout was made under fraud, duress, undue
influence, illegality or incapacity.
B) An
eligible person who participates in the Traditional Benefit Package and who
elects to accept the AAI Buyout offer may not elect to receive a survivors
contribution refund under Section 15-154(c) of the Code if a survivors
insurance beneficiary exists as of the retirement date. If no survivors
insurance beneficiary exists as of the retirement date, the survivors
contribution refund shall be payable to the eligible person.
C) An
eligible person who elects to accept the AAI Buyout offer shall be deemed to
have waived the right to any supplemental payments under Section 15-136.3 and
Section 15-146(d) of the Code.
D) An
election to accept the AAI Buyout offer shall be deemed to be a waiver of any
appeal rights under Section 1600.500 with respect to the AAI Buyout and all
underlying calculations.
6) Effect
of Rejection. Upon SURS' receipt of a rejection of the AAI Buyout offer amount
or upon the failure to make an election within the deadline specified under
subsection (e)(1), SURS shall pay automatic annual increases as provided under
Sections 15-136(d), 15-136.4(l), and 15-145(j) of the Code, as applicable.
f) AAI Buyout Voucher and
Payment
1) As
soon as administratively practicable after the SURS' receipt of the election to
accept the AAI Buyout offer amount, SURS shall submit one or more vouchers to
the State Comptroller for the payment of the AAI Buyout. SURS shall pay the
AAI Buyout as soon as administratively practicable after the SURS' receipt of
the AAI Buyout amount from the State Comptroller. In no event shall SURS pay
the AAI Buyout without having received the amounts sufficient to pay the AAI
Buyout in full from the State Comptroller.
2) The
AAI Buyout shall be paid in the form of a direct rollover to an "eligible
retirement plan" as defined under Section 1600.140(h)(6) (including any
supplemental defined contribution plan administered by SURS) to the extent
permissible under IRC section 401(a)(31), except for any amounts attributable
to Required Minimum Distributions under Section 1-116.1 of the Code or amounts
paid under the Excess Benefit Arrangement under Section 1600.430. The eligible
person may not elect to receive any portion of the direct rollover as cash.
3) The
AAI Buyout may not be repaid to SURS. However, if the retirement annuity is
cancelled under Section 15-139(a) of the Code after the eligible person is paid
the AAI Buyout offer amount, the eligible person shall repay to SURS that amount,
plus any applicable interest under Section 1600.450.
4) If
the eligible person who has received the AAI Buyout returns to participation
under Article 15, the calculation of any future automatic annual increase in
all retirement and survivor annuities under Section 15-139(c) shall be
calculated in accordance with Section 15-185.6(b-5) of the Code.
5) If
the eligible person dies after having elected to accept the AAI Buyout offer,
but prior to payment of the AAI Buyout, the AAI Buyout shall be payable to the
eligible person's estate.
(Source: Amended at 49 Ill. Reg. 3321,
effective February 26, 2025)
SUBPART E: DISABILITY CLAIMS AND ADMINISTRATIVE REVIEW
| TITLE 80: PUBLIC OFFICIALS AND EMPLOYEES
SUBTITLE D: RETIREMENT SYSTEMS
CHAPTER II: STATE UNIVERSITIES RETIREMENT SYSTEM
PART 1600
UNIVERSITIES RETIREMENT
SECTION 1600.500 ADMINISTRATIVE STAFF DETERMINATIONS AND RULES FOR APPEAL - NATURE AND REQUIREMENTS OF FORMAL HEARINGS
Section 1600.500 Administrative
Staff Determinations and Rules for Appeal − Nature and Requirements of
Formal Hearings
a) Administrative Determination
The Board of
Trustees hereby delegates to the SURS administrative staff the responsibility
for the daily claims-processing function of SURS, including making initial
determinations as to all applications for annuities and benefits, service
credit, or any other claims against or relating to SURS, consistent with the
provisions of the Illinois Pension Code.
b) Review by Senior Claims Management
Any participant, annuitant or beneficiary adversely affected by the
disposition of a claim by the administrative staff may file a written request
for review by a member of the SURS senior claims management or such other
person as may be designated by the Executive Director. A request for review by
the member of senior claims management must be received within 35 days from the
date of the decision from which review is sought. The review will be based
upon all materials contained in the file, as well as any additional materials
the claimant attaches to the written request for review. All filings or
submissions, whether optional or required under this Section, shall be
considered timely if date stamped by SURS within the time prescribed. The
decision reached by senior claims management or the Executive Director's
designee shall be served on the participant, annuitant or beneficiary by
delivery to a third-party commercial carrier or by registered or certified
mail, return receipt requested.
c) Review by the Claims Panel
1) A Claims Panel shall hear all administrative contested matters.
The Panel shall meet periodically as determined by the Executive Director.
2) Request for Review. Any participant, annuitant or beneficiary
(hereinafter "claimant") adversely affected by the disposition of a
claim by the member of senior claims management or the Executive Director's
designee may request, in writing, a review by the Claims Panel and, at the same
time, a copy of all relevant documents from the claimant's file. A request for
review must be received by the General Counsel of SURS, or the General Counsel's
designee, within 35 days from the date of the decision from which review is
sought.
3) Notice of Hearing. Upon receipt of a claimant's Request for
Review, SURS shall assign the claim a docket number; schedule the claim for the
first available meeting of the Claims Panel; and notify the claimant, by a
Notice of Hearing, that the claimant is required to file a single Statement of
Claim. The Notice of Hearing may be accompanied by any relevant documentation
from the claimant's file.
4) Statement of Claim. The Statement of Claim must be received by
the SURS General Counsel, or the General Counsel's designee, no later than 35
days from the date of the mailing of the Notice of Hearing. The Statement of
Claim shall include: a formal Appearance, containing the claimant's name, SURS
identification number and address; the name and address of the claimant's
authorized representative, if any; a statement of the facts forming the basis
for the appeal; any documents or other materials the claimant wishes to be
considered in conjunction with the appeal, in addition to those already
contained in the claimant's file; whether the claimant desires a hearing or
whether the claimant desires to waive a hearing and allow the Claims Panel to
reach a decision based upon the Statement of Claim and the relevant documents
in the claimant's file; a list of witnesses, if any, the claimant intends to
present at a hearing; and an explanation of the relief sought. The Statement of
Claim shall not exceed 15 pages in length, unless an exception is granted by
the Claims Panel Hearing Officer. The Hearing Officer may grant a motion to
Strike/Dismiss all or part of the Statement of Claim.
5) Response to Statement of Claim. SURS staff may submit a
Response to the Statement of Claim, which shall also not exceed 15 pages in
length, unless an exception is granted by the Claims Panel Hearing Officer.
6) Notification. The Notice of Hearing shall also provide a
claimant with written notice of: the date, time and place of the hearing;
the subject matter of the hearing; and relevant procedural and substantive
statutory and regulatory provisions [5 ILCS 100/10-25]. The Notice shall
inform the claimant of an opportunity to provide a statement of the claimant's
position, present oral evidence, and conduct examination and cross-examination
of witnesses as necessary for full and true disclosure of the facts. Notice
shall also be given to the claimant that the claimant is required to provide
written confirmation, at least 14 days prior to the scheduled date of the hearing,
of the claimant's intent to appear at the hearing, whether in person or by
telephone conference call. The claimant is not required to physically appear
at the hearing. The claimant may appear at the hearing by telephone conference
call. The claimant may also choose to affirmatively waive personal appearance
at the hearing. In the absence of the claimant, the Claims Panel will consider
the claimant's Statement of Claim and any documentary evidence, testimony
evidence, argument and any other information properly presented to the Claims
Panel by SURS staff during the scheduled hearing.
7) Pre-hearing Conference. Upon request of the General Counsel,
the claimant, or upon the decision of the Hearing Officer, a pre-hearing
conference shall be held for the purpose of simplification or definition of
issues or procedures at the hearing.
8) Legal Representation and Other Assistance. The claimant and SURS
may be represented by legal counsel and/or assisted by a designated family
member or spokesperson at the hearing.
9) Burden of Proof. It shall be the burden of the claimant to
establish a right to the benefit claimed, or the right to the continuation of
the benefit claimed in cases of revocation of the benefit by SURS, by
establishing that right by a preponderance of the evidence.
d) Discovery. All discovery is at the discretion of the Hearing
Officer. Requests to take discovery must be made in writing to the Hearing
Officer with notice to the other party. Discovery may be taken with the prior
permission of the Hearing Officer only upon good cause shown, that is, if the
evidence sought is material and cannot be obtained in any other way. Failure
to comply with orders of the Hearing Officer may be sanctioned by the Hearing
Officer, by means including, but not limited to, dismissal of a claim.
e) Depositions
1) The Hearing Officer may order the taking of evidence
depositions of a person, specifying the subject matter to be covered, under
oral examination or written questions, for use as evidence at the hearing,
provided:
A) The Hearing Officer has determined upon request that there is a
need to preserve a person's testimony. The need to preserve a person's
testimony shall be determined using criteria similar to that set forth under
Illinois Supreme Court Rule 212(b);
B) The request is made on motion by a party who gives notice of the
motion to the other party;
C) The Hearing Officer has determined that an evidence deposition
containing oral testimony will be necessary to the Claims Panel in determining
the merits of the claim; and
D) The Hearing Officer shall not grant any request to take the
evidence deposition of any SURS trustee, employee, or consultant working on
behalf of SURS. Requests for oral testimony at the hearing from these
individuals must be filed with the Hearing Officer for determination.
2) The taking of depositions shall be in accordance with the
provisions for taking depositions in civil cases, and the order for the taking
of a deposition may provide that any deposition exhibits, designated books,
papers, documents or tangible objects that are not privileged shall be produced
by the party requesting the deposition at least 7 days in advance of the
scheduled deposition.
3) Any party to the hearing shall, during any deposition process,
have the right to confront and cross-examine any witness whose deposition
testimony is to be presented to the Claims Panel.
4) Depositions shall be taken in the county of residence or
employment of the witness, unless the witness waives that right in writing.
5) Depositions shall be taken at the cost of the party requesting
the deposition. All deposition-related expenses shall be paid by the party
requesting the deposition. The party requesting the deposition shall pay for
and submit an original sealed transcript of the evidence deposition to SURS in
advance of the Claims Panel hearing. The non-requesting party may order and
pay for its own copy of the transcript.
f) Subpoenas
1) The Hearing Officer may request the Secretary of the Board to
issue a subpoena to compel the attendance of a witness at an evidence
deposition or the production of documents when the witness has, or the
documents contain, relevant evidence. A party may also request the Hearing
Officer to request the Secretary of the Board to issue a subpoena to compel the
attendance of a witness at an evidence deposition or the production of
documents. The request shall either be in writing or on the record and shall:
A) Identify the witness or
document sought; and
B) State
the facts that will be proven by each witness or document sought.
2) The Hearing Officer shall grant or deny the request, either in
writing or on the record. If the request for subpoena is granted, the Hearing
Officer shall, if necessary, reschedule the hearing to a specific date. The
request for subpoena shall be denied if the Hearing Officer finds that the
evidence sought is immaterial, irrelevant or cumulative. If the request for
subpoena is denied, the specific reasons for denial of the request shall be
made part of the record on appeal.
3) If a witness fails to obey a subpoena, the party seeking
enforcement of the subpoena shall prepare an application to the circuit court
of the county in which the subpoenaed witness resides requesting enforcement of
the subpoena, and shall present the application to the Hearing Officer, at the
same time serving a copy of the application upon the other party. If satisfied
that the subpoena was properly served and that the application is in proper
form, the Hearing Officer shall sign a subpoena to be submitted with the
application and the party seeking the subpoena may then file and prosecute the
application in the circuit court, in the name of the Board. The petitioner in
the application shall be styled as "Name of Petitioner ex rel. Board of
Trustees of the State Universities Retirement System" unless the
petitioner is SURS, in which case the petition shall be brought in the name of
the Board. In the event of an application being filed with the circuit court,
the matter shall be continued pending the outcome of the application to enforce
the subpoena.
4) The fees of witnesses for attendance and travel shall be the
same as fees of witnesses before the circuit courts of this State and shall be
paid by the party seeking the subpoena.
g) Conduct of the Hearing
1) Hearing Officer. The hearing shall be conducted by the
Hearing Officer. The Hearing Officer shall be an attorney licensed to practice
law in the State of Illinois and approved by the Board. Other members of the
Claims Panel may, but are not required to, attend the hearing. Members may
attend hearings either in-person or by video or teleconference.
A) The Hearing Officer shall have full power to conduct the hearing
and the presence of any other members of the Claims Panel is not required. The
Hearing Officer shall be one of the members of the Claims Panel and shall be chosen
by SURS to serve in that capacity.
B) The Claims Panel shall consist of:
i) the Executive Director of SURS;
ii) the Hearing Officer; and
iii) one other person, selected by the Chairperson of the Board of
Trustees of SURS, who shall be a member of the Board.
C) Each member of the Panel shall be reimbursed for travel or other
related expenses incurred in connection with duties as a member of the Panel. The
Hearing Officer shall receive reasonable compensation and reimbursement for
travel or other related expenses incurred per the terms of the contract with
SURS.
D) At a minimum, the members of the Claims Panel shall have a
general familiarity with the provisions of the Illinois Pension Code, this Part
and the internal operating procedures of SURS.
2) Procedures
A) The Hearing Officer shall conduct a full and fair hearing,
receive testimony of the claimant and admit exhibits into evidence, avoid
delay, maintain order and make a sufficient record for a full and true
disclosure of the facts and issues.
B) To accomplish these ends, the Hearing Officer shall make all
procedural and evidentiary rulings necessary for the conduct of the hearing.
C) All testimony shall be taken under oath before an officer
authorized to administer oaths by the laws of this State or of the United
States or of the place where the testimony is to be given.
D) As a general matter, the rules of evidence as applied in
civil cases in the circuit courts of the State of Illinois shall be followed;
however, evidence inadmissible under those rules may be admitted (except where
precluded by statute) if it is of a type commonly relied upon by reasonably
prudent persons in the conduct of their affairs. Any part of the evidence may
be received in written form, provided that the interests of the parties will
not be prejudiced. Notice may be taken of generally recognized technical facts
within SURS' specialized knowledge and SURS' experience,
technical competence and specialized knowledge may be used in evaluation of the
evidence. [5 ILCS 100/10-40]
E) The Hearing Officer, and any member of the Claims Panel
attending the hearing, may ask questions necessary for better understanding of
the facts or law.
F) The Hearing Officer shall have the authority to impose
reasonable time limits for each party to present its case and shall, in
general, have the power to manage and control the hearing process.
G) The hearing shall be open to the public and conducted pursuant
to the Open Meetings Act [5 ILCS 120].
3) Record of Proceedings. The record of proceedings shall be
kept in the form of either a stenographic transcription or an audio recording.
The claimant may directly obtain a stenographic transcription of the hearing
from the stenographer or request a copy of the audio recording of the hearing from
SURS by making a request after the close of the hearing and paying the actual
cost charged by the stenographer for the transcription.
4) Disqualification; Ex Parte Communications
A) Disqualification
i) A Hearing Officer or other member of the Claims Panel may
be disqualified on grounds of bias or conflict of interest. A
motion to disqualify a Hearing Officer or other member of the Claims Panel for
bias or conflict of interest shall be made to the Hearing Officer by any party
to the hearing within 14 days after the issuance of the notice of the hearing,
with a copy of the motion to be simultaneously submitted to the SURS General
Counsel. The motion shall be heard, considered and ruled upon by the Hearing
Officer at or prior to the commencement of the hearing. The movant shall have
the burden of proof with respect to the motion to disqualify. An adverse
ruling, familiarity with the facts of the case, non-dispositive involvement
in the staff decision underlying the case, or the fact that a Hearing Officer
or other member of the Claims Panel is a SURS trustee, an employee of SURS or
has a contract with SURS, standing alone, shall not constitute bias or
conflict of interest. [5 ILCS 100/10-30]
ii) The Executive Director may not be called as a witness unless
it is demonstrated that the Executive Director has relevant noncumulative
personal knowledge of facts bearing upon the claim. The Executive Director may
not be disqualified as a member of the Claims Panel on the basis that the
Executive Director is responsible for the overall administration of SURS.
iii) In the event that any member of the Claims Panel is
disqualified or is otherwise unable to serve, the Board Chairperson may appoint
another qualified person to the Claims Panel. The Board Chairperson shall
appoint another person if the Claims Panel is reduced to fewer than two members.
If the Hearing Officer is disqualified or is otherwise unable to serve, SURS
may retain another duly licensed attorney who may serve as the Hearing Officer.
B) Ex Parte Communications Prohibited
i) Except in the disposition of matters that SURS is
authorized by law to entertain or dispose of on an ex parte basis, the members
of the Claims Panel shall not, after receiving notice of a hearing in a
contested matter, communicate, directly or indirectly, in connection with any
issue of fact, with any party, or in connection with any other issue
with any party, or the representative of any party, except upon notice
and opportunity for all parties to participate. However, an employee of SURS
may communicate with other employees of SURS and an employee of SURS or member
of the Claims Panel may have the aid and advice of one or more assistants.
An ex parte communication received by any member of the Claims
Panel shall be made a part of the record of the pending matter,
including all written communications, all written responses to the
communications, and a memorandum stating the substance of all oral
communications and all responses made and the identity of each person from whom
the ex parte communication was received. Communications regarding matters of
procedure and practice, such as the format of pleadings, number of copies
required, manner of service, and status of proceedings, and questions
concerning potential conflict of interest and possible recusal are not
considered ex parte communications. [5 ILCS 100/10-60]
ii) Any documentary evidence, testimony evidence, argument and
any other information properly presented to the Claims Panel by SURS staff
during a scheduled hearing held in the absence of a claimant who waived the
right to participate in the hearing will not be deemed to be ex parte
communications.
5) Decisions of the Claims Panel and Executive Committee
A) Claims Panel Decisions
i) The record of proceedings shall be completed upon conclusion
of the hearing by the Hearing Officer, unless the Hearing Officer determines to
re-open the proceedings. In compliance with the Illinois Open Meetings Act,
upon conclusion of all evidence and arguments, the Claims Panel shall
deliberate in closed session and make a Decision as to the disposition of the
claim based on the evidence of record when they return to open session. The
Claims Panel Decision shall be served on all parties and their agents, if any,
by delivery to a third-party commercial carrier or by registered or certified
mail, return receipt requested. If a Statement of Exceptions to the Decision is
not filed pursuant to this subsection (g)(5)(A), the Decision is final for all
purposes and not subject to administrative or judicial review. However, if a
Statement of Exceptions to the Decision is filed or, if the members of the
Panel are unable to agree on a Decision, then the claim shall be presented to
the Executive Committee for a final administrative decision.
ii) If a
Statement of Exceptions is filed by either party, it must be received by SURS,
along with a brief in support, within 21 days after the date of mailing of the
Claims Panel Decision. SURS will pay to procure a copy of the verbatim
transcript of the Claims Panel proceedings. Any responsive brief filed by the
opposing party shall be received by SURS within 21 days after the filing of the
Statement of Exceptions. Any reply brief shall be received by SURS within 14
days after the filing of the responsive brief. The filing of any responsive or
reply brief is optional. The Executive Director, or The Director's designee, shall
provide the Executive Committee with a copy of the decision of the Claims
Panel. The Executive Committee will make a final administrative decision based
on the Claims Panel Decision, any Statement of Exceptions, and/or briefs
properly filed. All filings shall be served upon the opposing party and shall
contain a certificate of service. Filing deadlines in this subsection
(g)(5)(A)(ii) may be continued to a date certain by the Chairperson of the
Executive Committee for good cause shown on written application filed with SURS
prior to the expiration of the deadline sought to be continued.
iii) If
the claim is presented to the Executive Committee because the members of the
Claims Panel are unable to agree on a Decision, the Executive Committee shall
make a final administrative decision based on the written record, the verbatim
transcription of the proceedings, and any briefs properly filed with the Claims
Panel by the parties. SURS will pay to procure a copy of the verbatim
transcript of the Claims Panel proceedings.
B) Executive Committee Decision
i) When necessary pursuant to subsection (g)(5)(A), the
Executive Committee of the Board shall make a decision on the claim. No oral
argument shall be permitted before the Executive Committee.
ii) The Executive Committee shall render one of the following
decisions with respect to the claim: affirmance of the administrative action,
reversal of the administrative action, or remand of the case to the
administrative staff for further investigation and/or consideration. Remand of
the case to the administrative staff shall not be considered a final decision
of the Executive Committee. A decision by the Executive Committee either
reversing or affirming the decision of the administrative staff shall
constitute a final decision for the purpose of review under the Administrative
Review Law [735 ILCS 5/Art. III]. A final decision of the Executive
Committee shall be in writing or stated in the record.
iii) The Executive Committee may adopt, as its own, the findings
of fact and conclusions of law of the Claims Panel. Findings of fact, if
set forth in statutory language, shall be accompanied by a concise and explicit
statement of the underlying facts supporting the findings.
iv) All decisions of the Executive Committee shall specify
whether they are final and subject to the Administrative Review Law. [5
ILCS 100/10-50]
v) Parties and their agents, if any, shall be notified by sending
the decision of the Executive Committee via a third-party commercial carrier,
or by registered or certified mail, return receipt requested. The date of
mailing of the decision shall constitute the date of service for purposes of
the Administrative Review Law or any other applicable law.
(Source: Amended at 47 Ill.
Reg. 14005, effective September 14, 2023)
| TITLE 80: PUBLIC OFFICIALS AND EMPLOYEES
SUBTITLE D: RETIREMENT SYSTEMS
CHAPTER II: STATE UNIVERSITIES RETIREMENT SYSTEM
PART 1600
UNIVERSITIES RETIREMENT
SECTION 1600.510 EMPLOYER-RELATED DETERMINATIONS AND RULES FOR APPEAL
Section 1600.510 Employer-Related Determinations and
Rules for Appeal
This Section establishes procedures for employer appeals
concerning matters of administration under the Illinois Pension Code.
a) Administrative
Determination. The Board of Trustees hereby delegates to the SURS
administrative staff the responsibility for making determinations that affect
the rights and obligations of employers, consistent with the provisions of the
Code.
b) Review
by Senior Claims Management. Any employer adversely affected by a determination
by System administrative staff may file, with a member of the SURS senior
claims management or other person designated by the Executive Director, an
Employer Request for Review. An Employer Request for Review must be received
within 35 days after the date of the decision from which review is sought. If an
Employer Request for Review is not timely filed, the determination by
administrative staff is final for all purposes and not subject to
administrative or judicial review. The review shall be based on all materials
contained in the record, as well as any additional materials the employer
attaches to the Employer Request for Review. All filings or submissions,
whether optional or required under this Section, shall be considered timely if
date stamped by SURS within the time prescribed. The decision reached by
senior claims management or the Executive Director's designee shall be served
on the employer's authorized representative by delivery to a third-party
commercial carrier or by registered or certified mail, return receipt
requested.
c) Review
by the Claims Panel and Executive Committee. Any employer adversely affected
by the disposition of an Employer Request for Review made by senior claims
management or the designee may request, in writing, review by the Claims Panel
of the Board by filing with the SURS General Counsel, within 35 days after the
date of the decision from which review is sought, a Petition for Employer Appeal
All rights, obligations, procedures, pleading requirements, evidentiary
standards, and standards of proof applicable to the review by the Claims Panel
and any subsequent appeal to the Executive Committee of the Board under a
Petition for Employer Appeal shall be as provided for member appeals under
Section 1600.500(c) through (g).
d) Effect of Appeal on Due
Dates, Interest and Penalties
1) Due
Dates. If any provision of the Code or SURS regulations requires the employer
to make payment by a certain date, the due date shall not be extended during
the pendency of the appeal. Any final decision under this Section that
partially reduces the payment shall extend the due date of the remaining
balance by the time period during which the matter was under appeal.
2) Interest
and Penalties on Payments. If any provision of the Code or SURS regulations
imposes interest or penalties upon an employer after a certain date for
nonpayment, the interest and/or penalties shall continue to accrue during the
pendency of the appeal. Any final decision that partially reduces the payment
shall also reduce the attributable interest and/or penalties. To avoid the
accrual of interest and/or penalties, the employer may make payment or perform
any action required by SURS under protest. A payment submitted or required
action performed under protest must be submitted or performed on or before the
date of the Petition for Employer Appeal is filed pursuant to subsection (b). Any
payment submitted or required action performed under protest shall not be
considered an admission of any liability and shall not constitute a waiver of
any appeal rights under this Section.
(Source: Amended at 47 Ill. Reg. 14005,
effective September 14, 2023)
| TITLE 80: PUBLIC OFFICIALS AND EMPLOYEES
SUBTITLE D: RETIREMENT SYSTEMS
CHAPTER II: STATE UNIVERSITIES RETIREMENT SYSTEM
PART 1600
UNIVERSITIES RETIREMENT
SECTION 1600.550 DISABILITY CLAIMS PROCEDURE
Section 1600.550 Disability Claims Procedure
a) Pursuant
to Code Section 15-150, a participant may be granted a disability benefit if,
while a participating employee, he or she becomes physically or mentally
incapacitated and unable to perform the duties of his or her assigned position
for any period exceeding 60 consecutive calendar days and the employee had
completed 2 years of service at the time of disability, unless the disability
is a result of an accident or the employee is a
police officer who qualifies for line-of-duty disability benefits under Section
15-153(b) of the Code. An employee shall be considered disabled only
during the period for which the Board determines, based upon the evidence
listed in this Section, that the employee is unable to reasonably perform the
duties of his or her assigned position as a result of a physical or mental
disability. This determination shall be based upon:
1) a
written certificate from one or more licensed and practicing physicians
appointed by or acceptable to the Board, stating that the employee is disabled
and unable to reasonably perform the duties of his or her assigned position;
2) a
written certificate from the employer stating that the employee is unable to
perform the duties of his or her assigned position
and, if the employee is a police officer applying for a line-of-duty disability,
the employer's position on whether the disability qualifies as a line-of-duty
disability; and
3) any
other medical examinations, hospital records, laboratory results, or other
information necessary for determining the employment capacity and condition of
the employee; and
4) if the employee is a police officer applying for
a line-of-duty disability, a written certification from one or more licensed
and practicing physicians appointed by or acceptable to the Board, stating that
the disability qualifies as a line-of-duty disability under Section 15-153(b)
of the Code.
b) Application Filing
Requirements
1) An
application for disability benefits must include the certifications described
in subsections (a)(1), (a)(2), (a)(4), if applicable, and supporting
documentation described in subsection (a)(3), all as explained in more detail
in this Section, for each disabling condition as well as for the entire period
of disability.
2) The
application must be filed within one calendar year after the date on which the
disability occurred. The application is deemed to
have been filed on the date on which the System first receives any part or
section of the application. This limitation may be waived upon a
showing of good cause, including, but not limited to, extenuating circumstances
in which the applicant was under significant physical, mental or medical
infirmity or legal status that prevented the applicant from filing within the
time period.
c) Certification
By Physicians. For purposes of subsections (a)(1) and (a)(4), the following
shall apply:
1) Physicians
acceptable to the Board are attending physicians, physicians designated by the
participant and physicians to whom the participant was referred by the
attending or designated physician. Physicians appointed by SURS staff to
examine the participant are deemed to be physicians appointed by the Board.
The physician must be licensed to practice and be currently practicing in the
field of expertise related to the underlying physical or mental condition for
which disability benefits are sought.
2) The
certification must be signed by a physician described in subsection (c)(1) or
an authorized representative of the physician and must state the following:
A) the
medical diagnosis of the physical or mental condition;
B) the
prognosis of the physical or mental condition;
C) the
physical or mental limitations to which the participant should
adhere; and
D) that
the participant is disabled and is unable to reasonably perform the duties of
his or her assigned position as a result of the physical or mental disability;
and
E) if the employee is a police officer applying for
a line-of-duty disability, that the disability qualifies as a line-of-duty
disability under Section 15-153(b) of the Code.
3) The
certification must be accompanied by a report containing the following:
A) the date of examination;
B) the
medical history of the participant;
C) the
results of any diagnostic tests used;
D) the
diagnosis of the physical or mental condition;
E) the
plan of treatment for the physical or mental condition and prognosis in
response to the treatment plan;
F) an
evaluation of the physical or mental condition as it bears upon the
participant's ability to reasonably perform the duties of his or her assigned
position; and
G) any
existing documentation of objective medically demonstrable anatomical,
physiological or psychological abnormalities manifested as test results or laboratory
findings apart from self-reported symptoms.
d) Certification
by Employers. For purposes of subsection (a)(2), the certification must be
signed by an officer authorized by the employer and must state the following:
1) the
physical or mental performance requirements for the reasonable performance of
the participant's assigned position;
2) whether
the participant is able to satisfy each physical or mental performance
requirement for the reasonable performance of his or her assigned position to
the best of the employer's knowledge or belief and the reason for that
knowledge or belief;
3) whether
the participant is able to reasonably perform the duties of his or her assigned
position based on the provisions of subsections (d)(1) and (d)(2); and
4) if the employee
is a police officer applying for a line-of-duty disability, the employer's
position on whether the disability qualifies as a line-of-duty disability under
Section 15-153(b) of the Code.
e) Determination
of Regular and Line-of-Duty Disability. If the participant establishes, by a preponderance
of the evidence, that he or she is physically or mentally disabled and unable
to perform the duties of his or her assigned position as a result of the
disability, the participant shall be determined eligible for regular disability
benefits under Section 15-153(a) of the Code. In
lieu of regular disability benefits under Section 15-153(a) of the Code, if a
police officer establishes, by a preponderance of the evidence, that as the
result of sickness, accident, or injury incurred in or resulting from the
performance of an act of duty, the police officer is found to be physically or
mentally disabled for employment as a police officer so as to render necessary
his or her suspension or retirement from employment as a police officer or is
found to be unable to perform his or her duties as a police officer by reason
of heart disease, stroke, tuberculosis, or any disease of the lungs or
respiratory tract, resulting from employment as a police officer, the
police officer shall be determined eligible for line-of-duty disability
benefits under Section 15-153(b) of the Code. Any police officer who
suffers a heart attack or stroke as a result of the performance and discharge
of police duty shall be considered to have been injured in the performance of
an act of duty and shall be eligible for line-of-duty disability benefits
under Section 15-153(b) of the Code. For purposes of Section 15-153(b) of the
Code, a police officer shall be considered to be in the performance of an
act of duty while on any assignment approved by the police officer's chief,
whether the assignment is on or off the employer's property. [40 ILCS
5/15-153(b)].
1) SURS
staff shall determine whether certifications made under subsections (a)(1),
(a)(2), and (a)(4), if applicable, and supporting documentation described in
subsection (a)(3) establish eligibility for regular disability benefits or
line-of-duty disability benefits.
2) At
the discretion of SURS staff, the participant may be required to submit to
additional examinations by staff appointed physicians or specialists to aid in
the determination process.
3) Physical
or mental conditions resulting from self-inflicted injuries, substance abuse,
or any act for which the participant was convicted of a misdemeanor or felony
A) are
not the result of an accident for purposes of Section 15-150 of the Code; and
B) are not a sickness, accident, or injury incurred
in or resulting from the performance of an act or duty for purposes of Section
15-153(b) of the Code.
f) Subsequent
Re-examination of Disabled Participants
1) SURS
staff shall secure from one or more physicians, periodically, re-evaluation
reports concerning the continued disability of the participant. The date of
re-evaluation shall be determined by SURS staff on the basis of the medical
reports received previously, the nature of the disability, and other relevant
information.
2) In
the re-evaluation of disability claims, the examining physician shall be the
attending physician or the physician designated by the participant, but, if the
nature of the disability or other circumstances justifies the appointment of
someone other than the participant's attending physician or designated
physician as the examining physician, SURS staff shall make the appointment.
All other procedures that may be applicable in processing the initial claim for
disability benefits shall be followed in re-evaluation of the claim.
g) Release
of Medical Information. The participant may be required to authorize the
release of all medical or other information related to the disability claim,
including but not limited to medical reports, hospital records, Department of
Employment Security earnings statements, income tax records, unemployment
records, and any record deemed necessary to the administration of the
disability claim. The failure of the participant to submit to a re-evaluation
examination or a treatment plan, to produce records, or to approve release of
information required shall result in the discontinuance of disability benefit
payments under Section 15-152 of the Code or
suspension under Section 1600.160 of this Part, as applicable.
h) Vacation
Payments and Disability Benefit Commencement. If an employee receives payment
for unused vacation leave accrued under the employment from which the employee
is disabled, the date of the "termination of payment of salary or sick
leave benefits" under Section 15-151 of the Code shall be delayed by the
number of work days attributable to the vacation payment.
(Source: Amended at 49 Ill. Reg. 3321,
effective February 26, 2025)
| TITLE 80: PUBLIC OFFICIALS AND EMPLOYEES
SUBTITLE D: RETIREMENT SYSTEMS
CHAPTER II: STATE UNIVERSITIES RETIREMENT SYSTEM
PART 1600
UNIVERSITIES RETIREMENT
SECTION 1600.555 DISABILITY RETIREMENT ANNUITY CLAIMS PROCEDURE
Section 1600.555 Disability
Retirement Annuity Claims Procedure
a) Pursuant to Section
15-153.2 of the Code, a participant whose disability benefits are
discontinued under the provisions of clause (6) of Section 15-152 of the Code
and who is not a participant in the Retirement Savings Plan is entitled
to a disability retirement annuity of 35% of the basic compensation which was
payable to the participant at the time the regular disability began under
Section 15-153(a) of the Code, or 65% of the basic compensation that was
payable to the participant at the time the line-of-duty disability began under
Section 15-153(b) of the Code, provided that the Board determines that the
participant has a medically determinable physical or mental impairment that prevents
him or her from engaging in any substantial gainful activity, and which can be
expected to result in death or which has lasted or can be expected to last for
a continuous period of not less than 12 months. This determination shall
be based upon:
1) a written certificate
from one or more licensed and practicing physicians appointed by or acceptable
to the Board, stating that the participant is unable to engage in any
substantial gainful activity; and
2) any other medical
examinations, hospital records, laboratory results, or other information
necessary for determining the employment capacity and condition of the
participant.
b) Application Filing
Requirements
1) An application for a
disability retirement annuity must include the certification described in
subsection (a)(1) and supporting documentation described in subsection (a)(2),
all as explained in more detail in this Section, for each disabling condition
as well as for the entire period of the disability retirement annuity.
2) The application for a
disability retirement annuity must be filed within one calendar year after the
date on which the disability benefits are discontinued under clause (6) of
Section 15-152 of the Code. The application is deemed to have been filed on
the date on which the System first receives any part or section of the
application. An untimely application shall render the participant ineligible
for a disability retirement annuity. This limitation may be waived upon a
showing of good cause, including, but not limited to, extenuating circumstances
in which the applicant was under a significant physical, mental or medical
infirmity or legal status that prevented the applicant from filing within the
time period.
c) Certification By
Physicians. For purposes of subsection (a)(1), the following shall apply:
1) Physicians acceptable to
the Board are attending physicians, physicians designated by the participant
and physicians to whom the participant was referred by the attending or
designated physician. Physicians appointed by SURS staff to examine the
participant are deemed to be physicians appointed by the Board. The physician
must be licensed to practice and be currently practicing in the field of
expertise related to the underlying physical or mental condition for which
disability benefits are sought.
2) The certification must
be signed by a physician described in subsection (c)(1) or an authorized
representative of the physician and must state the following:
A) the medical diagnosis of
the physical or mental condition;
B) the prognosis of the
physical or mental condition; and
C) that the participant has
a medically determinable physical or mental impairment that prevents the
participant from engaging in any substantial gainful activity and can be
expected to result in death or has lasted or can be expected to last for a
continuous period of not less than 12 months.
3) The certification must
be accompanied by a report containing the following:
A) the date of examination;
B) the medical history of
the participant;
C) the results of any
diagnostic tests used;
D) the diagnosis of the
physical or mental condition;
E) the plan of treatment for
the physical or mental condition and prognosis in response to the treatment
plan;
F) an evaluation of the
physical or mental condition that prevents the participant from engaging in any
substantial gainful activity and that can be expected to result in death or has
lasted or can be expected to last for a continuous period of not less than 12
months; and
G) any existing
documentation of objective medically demonstrable anatomical, physiological or
psychological abnormalities manifested as test results or laboratory findings
apart from self-reported symptoms.
d) Determination of
Disability Retirement Annuity. If the participant whose disability benefits
are discontinued under the provisions of clause (6) of Section 15-152 of the
Code establishes, by a preponderance of the evidence, that the participant has
a medically determinable physical or mental impairment that prevents the
participant from engaging in any substantial gainful activity and can be
expected to result in death or has lasted or can be expected to last for a
continuous period of not less than 12 months, the participant shall be
determined eligible for a disability retirement annuity under Section 15-153.2
of the Code. Participants in the Retirement Savings Plan are not eligible
to receive disability retirement annuity benefits.
1) SURS staff shall determine
whether the certifications made under subsection (a)(1) and supporting
documentation described in subsection (a)(2) establish eligibility for a
disability retirement annuity.
2) At the discretion of
SURS staff, the participant may be required to submit to additional
examinations by staff appointed physicians or specialists to aid in the
determination process.
e) Subsequent
Re-examination of Disability Retirement Annuity Recipients
1) SURS staff shall secure
from one or more physicians, periodically, re-evaluation reports concerning the
continued disability of the participant or the recipient. The date of
re-evaluation shall be determined by SURS staff on the basis of the medical
reports received previously, the nature of the disability, and other relevant
information.
2) In the re-evaluation of
disability retirement annuity claims, the examining physician shall be the
attending physician or the physician designated by the participant or the
recipient. However, if the nature of the disability or other circumstances
justifies the appointment of someone other than the participant's or recipient's
attending physician or designated physician as the examining physician, SURS
staff shall make the appointment. All other procedures that may be applicable
in processing the initial claim for a disability retirement annuity shall be
followed in re‑evaluation of the claim.
f) Release of Medical
Information. The participant or the recipient may be required to authorize the
release of all medical or other information related to the disability
retirement annuity claim, including, but not limited to, medical reports,
hospital records, Department of Employment Security earnings statements, income
tax records, unemployment records, and any record deemed necessary to the
administration of the disability retirement annuity claim. The failure of the
participant or the recipient to submit to a re-evaluation examination or a
treatment plan, to produce records, or to approve release of information
required shall result in the discontinuance of disability retirement annuity
payments payable to the participant or recipient
who failed to comply pursuant to Section 15-153.2(d) of the Code or suspension
under Section 1600.160, as applicable.
g) The terms "substantial gainful activity" and "medically
determinable physical or mental impairment" shall have the meanings
ascribed to them under 20 C.F.R.
404.1510 and 404.1521, respectively.
(Source: Added at 49 Ill. Reg. 3321,
effective February 26, 2025)
SUBPART F: QUALIFIED ILLINOIS DOMESTIC RELATIONS ORDERS
| TITLE 80: PUBLIC OFFICIALS AND EMPLOYEES
SUBTITLE D: RETIREMENT SYSTEMS
CHAPTER II: STATE UNIVERSITIES RETIREMENT SYSTEM
PART 1600
UNIVERSITIES RETIREMENT
SECTION 1600.600 DEFINITIONS
Section 1600.600 Definitions
a) The definitions in Section 1-119(a) of the Pension Code shall
apply to the rules contained in this Subpart.
b) The phrase "alternate payee" in Section 1-119(a)(1)
of the Pension Code means a current spouse, former spouse, child or other
dependent of a SURS member, as designated in a QILDRO.
c) The phrase "death benefit" in Section 1-119(a)(2) of
the Pension Code means a benefit paid pursuant to Section 15-141 or 15-142 of
the Pension Code, or any lump-sum payment under Section 15-145(e) of the
Pension Code.
d) The phrase "member's refund" in Section 1-119(a)(5)
of the Pension Code does not include an "error refund" as defined in
subsection (e) of this Section.
e) The phrase "error refund", as used in this Subpart,
means a refund paid to a member as the result of an error in a payment to the
System, a refund paid to a member when the required employee or employer
contributions necessary to purchase or reinstate service credit have not been
fully paid, or a refund of contributions made under Section 1600.240(e).
f) The phrase "disability benefit" in Section
1-119(a)(3) of the Pension Code includes:
1) A disability benefit under Section 15-150 of the Pension Code;
or
2) A disability retirement annuity under Section 15-153.2 of the Pension
Code.
g) The phrase "member's retirement benefit", as used in
this Subpart, means the total amount of the retirement benefit as defined in
Section 1-119(a)(8) of the Pension Code that would be payable to the member in
the absence of a QILDRO.
h) The phrase "partial member's refund", as used in
this Subpart, includes:
1) A refund of survivor benefit contributions;
2) A refund of excess contributions or interest; or
3) A refund of waived service credit.
i) The
phrase "permissive service", as used in this Subpart, means service
credit purchased by payment of voluntary contributions by the member under
Sections 15-113.1(c), 15-113.2, 15-113.3, 15-113.5, 15-113.6, 15-113.7,
15-113.8 and 15-113.9 of the Pension Code and service credited under Section
15-113.4 of the Pension Code. Permissive service restored upon the repayment
of a refund under Section 15-154(b) of the Pension Code is restored as
permissive service.
j) The
phrase "regular service", as used in this Subpart, means service
credited under Sections 15-113.1(b) and 15-113.3 of the Pension Code without
the payment of voluntary contributions. Regular service restored upon the
repayment of a refund under Section 15-154(b) of the Pension Code is restored
as regular service.
k) The
phrase "effective date of retirement", as used in Section 1-119 of
the Pension Code and this Subpart, means the beginning of the "annuity
payment period" as defined in Section 1600.100.
(Source: Amended at 33 Ill.
Reg. 10757, effective July 1, 2009)
| TITLE 80: PUBLIC OFFICIALS AND EMPLOYEES
SUBTITLE D: RETIREMENT SYSTEMS
CHAPTER II: STATE UNIVERSITIES RETIREMENT SYSTEM
PART 1600
UNIVERSITIES RETIREMENT
SECTION 1600.605 REQUIREMENTS FOR A VALID QUALIFIED ILLINOIS DOMESTIC RELATIONS ORDER
Section 1600.605
Requirements for a Valid Qualified Illinois Domestic Relations Order
SURS will accept a court order
as a valid QILDRO or QILDRO Calculation Court Order if it meets all of the
following requirements:
a) The
following requirements apply to the QILDRO and the QILDRO Calculation Court
Order:
1) The order must be accompanied by a $50 non-refundable
processing fee, by check or money order payable to the State Universities
Retirement System.
2) The
order must be a certified copy of the original.
3) The order must have been issued by an Illinois court of
competent jurisdiction in a proceeding for declaration of invalidity of
marriage, legal separation or dissolution of marriage that provides for the
distribution of property, or any proceeding to amend or enforce the property
distribution. A judgment, order or notice of income withholding for support
under a support enforcement mechanism under Title IV-D of the Social Security
Act (42 USC 666) or any other state law that purports to divide or garnish the
member's retirement benefit under any proceeding for the declaration of
invalidity of marriage, legal separation or dissolution of marriage will not be
honored by SURS unless the judgment, order or notice is accompanied by a QILDRO
(and if applicable, a QILDRO Calculation Court Order) issued by an Illinois
court.
4) The order must contain the name, residence address and Social
Security number of the member.
5) The order must contain the name, residence address and Social
Security number of the alternate payee.
6) The order must identify the State Universities Retirement
System as the retirement system to which it is directed.
7) The
order must identify the court that issued it.
8) The order must apply only to benefits that are statutorily
subject to QILDROs, as provided in Code Section 1-119(b)(1).
9) The orders and, if applicable, the Consent to Issuance of
QILDRO, must be in the form adopted by SURS as of the date the order is
received. Any alterations will invalidate the order.
10) Except as otherwise provided in this subsection (a)(10), the
effective date of the order must be after July 1, 1999 and before the date of
death of the member. If the effective date of the order is on or after the
member's date of death, SURS will deem the effective date of the posthumous
order as if it had been entered on the day immediately prior to the member's
date of death if the order is dated no later than 6 months after the date of
death and:
A) any applicable consent requirements under subsection (b)(1)
were met prior to the member's date of death; or
B) the order is accompanied by a certified copy of a decree of
dissolution of marriage that is dated before the date of death of the member
and incorporates the terms of a written marital settlement agreement that was
signed by both parties before the date of death of the member and provides
direction for the division of the member's SURS benefits under a QILDRO.
b) The following additional requirements apply only to the
QILDRO:
1) If
the QILDRO applies to a person who became a SURS member before July 1, 1999, it
must be accompanied by the original Consent to Issuance of QILDRO form signed
by the member, or a certified copy of the original. The consent cannot be
signed by a judge, sheriff or any person other than the member. A QILDRO
issued on or after July 1, 2006 that modifies a QILDRO issued prior to July 1,
2006 must be accompanied by an original Consent to Issuance of QILDRO signed by
the member on or after July 1, 2006. If the alternate payee is unable to
obtain a signed consent from the member, the required consent can be
established if the QILDRO is accompanied by a certified copy of a decree of
dissolution of marriage that incorporates the terms of a written marital
settlement agreement that was signed by both parties and provides direction for
the division of the member's SURS benefits under a QILDRO.
2) The
QILDRO must specify each benefit to which it applies, and it must specify only
one method by which the benefit shall be paid to the alternate payee.
3) If
any benefit is to be paid using the Marital Portion Benefit Calculation, the
QILDRO must comply with Code Section 1-119(n)IX and the QILDRO must contain
language in conformance with Section 1-119(n)IX(1) and (2) properly completed.
The "other" option must only be checked for the purpose of using a
combination of permissive service and regular service. If the "other"
option is checked, a supplemental order stating the details of the combination
must accompany the QILDRO. The supplemental order must not purport to
establish a formula differing from the ones appearing under Code Section
1-119(n) or purport to create new classes of service credit.
4) If
the member is a participant of the Traditional or Portable Benefit Package, the
order must designate whether the alternate payee will receive automatic annual
increases as provided under Code Section 1-119(n)IV.
5) If
the member is a participant of the Self-Managed Plan who has an account
balance, then the QILDRO may only provide for the division of the account
balance as of a certain date. If the Self-Managed Plan member is receiving
benefits under an annuity contract, then the QILDRO may only divide the member's
retirement benefit or death benefit, if any, or both.
c) The
following additional requirements apply only to the QILDRO Calculation Court
Order:
1) The
QILDRO Calculation Court Order must allocate benefits consistent with the
underlying QILDRO. Benefits that will never become payable on or after the
date the QILDRO Calculation Court Order is filed need not be allocated under
the QILDRO Calculation Court Order
2) Benefits
allocated using a calculation method on the QILDRO Calculation Court Order must
contain a clear result of the equation. SURS is not obligated to review or
verify the equations or assist in the calculations to determine the benefits.
(Source: Amended at 41 Ill.
Reg. 11606, effective September 1, 2017)
| TITLE 80: PUBLIC OFFICIALS AND EMPLOYEES
SUBTITLE D: RETIREMENT SYSTEMS
CHAPTER II: STATE UNIVERSITIES RETIREMENT SYSTEM
PART 1600
UNIVERSITIES RETIREMENT
SECTION 1600.610 INVALID ORDERS
Section 1600.610 Invalid
Orders
An order failing to satisfy all the applicable requirements
under Section 1600.605 shall be invalid and shall not cause the member's
benefits to be divided or reduced absent the submission of a new order
satisfying those requirements. The new order shall not be treated as a
modified order under Section 1600.620 and shall not be implemented
retroactively.
(Source: Amended at 33 Ill.
Reg. 10757, effective July 1, 2009)
| TITLE 80: PUBLIC OFFICIALS AND EMPLOYEES
SUBTITLE D: RETIREMENT SYSTEMS
CHAPTER II: STATE UNIVERSITIES RETIREMENT SYSTEM
PART 1600
UNIVERSITIES RETIREMENT
SECTION 1600.615 FILING A QILDRO WITH THE SYSTEM
Section 1600.615 Filing a
QILDRO with the System
a) A QILDRO or QILDRO Calculation Order should be sent to the
SURS Legal Department, accompanied by the consent form, if applicable, and the
$50 non-refundable processing fee.
b) A QILDRO or QILDRO Calculation Order will be deemed received
by SURS on the date it is file-stamped as received at the SURS office.
c) Within 45 calendar days after receiving a QILDRO or QILDRO
Calculation Order, SURS will review the order and notify the member and each
alternate payee by first-class mail that it has received the QILDRO or QILDRO
Calculation Order, and whether it is a valid order. If SURS determines that the
order is not a valid QILDRO or QILDRO Calculation Order, the notice will
specify the reasons.
(Source: Amended at 33 Ill.
Reg. 10757, effective July 1, 2009)
| TITLE 80: PUBLIC OFFICIALS AND EMPLOYEES
SUBTITLE D: RETIREMENT SYSTEMS
CHAPTER II: STATE UNIVERSITIES RETIREMENT SYSTEM
PART 1600
UNIVERSITIES RETIREMENT
SECTION 1600.620 MODIFIED QILDROS
Section 1600.620 Modified
QILDROs
a) A QILDRO or QILDRO Calculation Order that has been modified by
the issuing court must be submitted in the same manner as the original order. A
separate $50 non-refundable processing fee is required for each modified order.
b) A modified QILDRO will hold the same priority of payment that
the original QILDRO held, as long as it does not increase the dollar amount or
percentage of any benefit payable to the alternate payee or affect a different
benefit that was not previously affected (other than automatic annual
increases). A modified QILDRO Calculation Court Order will not affect the
priority of payment of the underlying QILDRO.
c) If a modified QILDRO does increase the amount or affect benefits
not previously affected (other than automatic annual increases), it will lose
the priority held by the original QILDRO and priority of payment will be based
on the date SURS received the modified QILDRO.
(Source: Amended at 33 Ill.
Reg. 10757, effective July 1, 2009)
| TITLE 80: PUBLIC OFFICIALS AND EMPLOYEES
SUBTITLE D: RETIREMENT SYSTEMS
CHAPTER II: STATE UNIVERSITIES RETIREMENT SYSTEM
PART 1600
UNIVERSITIES RETIREMENT
SECTION 1600.625 BENEFITS AFFECTED BY A QILDRO
Section 1600.625 Benefits
Affected by a QILDRO
a) A QILDRO may apply only to the following benefits administered
by SURS:
1) A monthly retirement benefit;
2) A single-sum retirement benefit;
3) A termination refund;
4) A partial member's refund; and
5) A
death benefit.
b) If a QILDRO specifies a dollar amount payable to an alternate
payee from any partial member's refund that becomes payable, the aggregate
amount paid to the alternate payee from all partial member's refunds shall not
exceed the dollar amount specified in the QILDRO.
c) A QILDRO shall not apply to any of the following:
1) A monthly survivor benefit;
2) A disability benefit;
3) A disability retirement annuity; and
4) An error refund.
d) Any
option under a paragraph pertaining to a benefit that is left blank shall be
interpreted to not apply to the order. If all options under a particular
benefit are blank, then the alternate payee shall not receive any portion of
the benefit.
e) Any
QILDRO or QILDRO Calculation Court Order purporting to apply to any accelerated
pension benefit payment under Section 15-185.5 or 15-185.6 of the Code shall be
accompanied by a stipulated court order directing the manner and amounts of the
division of the payment. If the payment would diminish any amounts payable to
any other alternate payee having priority over the current alternate payee,
payment shall not be divided unless all affected parties have entered into
stipulated court orders directing the manner of the division of the payment.
(Source: Amended at 43 Ill.
Reg. 8562, effective July 26, 2019)
| TITLE 80: PUBLIC OFFICIALS AND EMPLOYEES
SUBTITLE D: RETIREMENT SYSTEMS
CHAPTER II: STATE UNIVERSITIES RETIREMENT SYSTEM
PART 1600
UNIVERSITIES RETIREMENT
SECTION 1600.630 EFFECT OF A VALID QILDRO
Section 1600.630 Effect of a
Valid QILDRO
a) Timing
of Effect. In no event shall a QILDRO apply to any benefit paid by SURS
before or within 30 days after the order is received. [40 ILCS
5/15-119(c)(3)] SURS shall not delay the payment of any benefit to a member
due to the receipt of a QILDRO. In addition to the foregoing, the following
shall apply:
1) Retirement
Benefits. A provision under a QILDRO dividing a retirement benefit under
Section 1-119(n)III of the Pension Code shall take effect as ordered under
either Section 1-119(n)III(B) or (C) of the Pension Code.
2) Member's Refunds and Death Benefits. A provision under a
QILDRO dividing a member's refund or death benefit shall take effect when the
member's refund is paid or as soon as administratively possible after the
member's death.
3) Self-Managed
Plan Accounts. A QILDRO pertaining to a member of the Self-Managed Plan having
an account balance shall only divide the vested account balance between the
member and the alternate payee as of a certain date (or the closest valuation
date if the plan provider cannot provide a valuation on the date specified).
The division shall be made in relation to a dollar amount, a percentage of the
gross balance, or a percentage of a balance derived from the marital period.
The System shall process the division as soon as administratively possible
after receipt of the QILDRO or, if required, the QILDRO Calculation Court
Order. If the QILDRO divides the member's account balance in accordance with
this subsection (a)(3), the System shall ignore purported divisions of other
benefit types.
b) Timing of Payments. Benefits subject to a QILDRO shall be
paid in the following manner:
1) Dollar Divisions. If a retirement benefit, member's refund or
death benefit is divided by a dollar amount, then the payments shall be made
when the QILDRO takes effect under subsection (a).
2) Percentage Divisions. If a retirement benefit, member's
refund or death benefit is divided as a percentage of the gross benefit or as a
percentage of the marital portion of the benefit, payment shall be made as soon
as administratively possible upon the receipt of a valid QILDRO Calculation
Court Order.
A) Withholding of Anticipated Payments. If the member
participates in the Traditional or Portable Benefit Packages prior to the
receipt of a QILDRO Calculation Court Order, SURS shall withhold an amount from
a member's retirement benefit for which a QILDRO is effective under subsection
(a). The member and any other alternate payees shall be paid the remaining
portion of the benefit in their order of priority.
i) If the division is by a percentage of the gross benefit, then
the amount withheld shall be calculated by applying the applicable percentage
to the benefit.
ii) If the division is by a percentage of the marital period,
then the amount withheld shall be calculated by applying the applicable
percentage and by assuming that all service, contributions, interest or
earnings attributable to periods between the marriage date and the date of
dissolution are attributed to the marital period. Any academic year containing
a portion of the marital period shall, in its entirety, be considered part of
the marital period for this purpose.
iii) If SURS cannot reasonably determine from the QILDRO alone the
amount to be withheld, neither the member nor the alternate payee shall be paid
until the QILDRO is modified to allow for a reasonable determination of the
anticipated payment or until a QILDRO Calculation Court Order is received.
iv) If SURS discovers that it has over-withheld due to the receipt
of a QILDRO Calculation Court Order, the excess shall be distributed to the
member and any other alternate payees in their order of priority. SURS shall
not pay any interest to the member or any other alternate payees for any
amounts over-withheld.
v) If SURS discovers that it has under-withheld due to the
receipt of a QILDRO Calculation Court Order, SURS shall make a deduction from
the remaining portion of the next monthly retirement benefit payable and pay
the deducted amounts to the alternate payee as soon as administratively
possible. The deduction rate shall be no more than 50% of the remaining
monthly retirement benefit payment net of tax or insurance withholdings. The
deduction shall recur for each monthly retirement benefit payment thereafter
until the alternate payee is paid the under-withheld amount in full. SURS
shall not pay any interest to the alternate payee for any amounts
under-withheld.
vi) In the event that a QILDRO terminates upon the death of the
alternate payee before a valid QILDRO Calculation Order is received, all
withholdings shall revert to the member and to other alternate payees in their
order of priority. SURS shall not pay any interest to the member or any other
alternate payees for any amounts so withheld.
B) Preliminary Estimated Payments. If a member is receiving
preliminary estimated payments under Section 1600.420 and a QILDRO Calculation
Court Order is required for payment under this subsection (b)(2), the
retirement benefit shall not be finalized until a QILDRO Calculation Court
Order is received by the System.
3) Self-Managed
Plan Accounts. If the division is a percentage of the gross account balance or
of the balance derived from the marital period, a QILDRO Calculation Order must
be received before the account is divided. Upon a division of the account, the
alternate payee shall have the option of receiving his or her portion of the
account balance in the form of a lump-sum payment or maintaining a separate
account with the service provider. The maintenance of an account balance shall
not create rights under the Self-Managed Plan for the alternate payee other
than the investment and distribution of his or her account.
c) Priority of Payments
1) Recouping Overpayments. If a member, survivor or other
beneficiary was overpaid benefits, any benefits payable shall be applied to the
overpayment before any QILDRO is applied.
2) If a benefit is subject to multiple QILDROs, each QILDRO shall
be satisfied in the order in which it was received until the benefit is
exhausted.
3) The alternate payee shall be paid a portion of the death
benefit to which the QILDRO applies before any death beneficiary or estate.
(Source: Amended at 33 Ill.
Reg. 10757, effective July 1, 2009)
| TITLE 80: PUBLIC OFFICIALS AND EMPLOYEES
SUBTITLE D: RETIREMENT SYSTEMS
CHAPTER II: STATE UNIVERSITIES RETIREMENT SYSTEM
PART 1600
UNIVERSITIES RETIREMENT
SECTION 1600.635 QILDROS AGAINST PERSONS WHO BECAME MEMBERS PRIOR TO JULY 1, 1999
Section 1600.635 QILDROs
Against Persons Who Became Members Prior to July 1, 1999
a) In accordance with Section 1-119(m)(1) of the Pension Code, a
QILDRO that applies to a person who became a SURS member prior to July 1, 1999
must be accompanied by the original Consent to Issuance of QILDRO signed by the
member. A consent form signed by a judge, sheriff or any other person other
than the member is invalid. A QILDRO issued on or after July 1, 2006 that
modifies a QILDRO issued prior to July 1, 2006 must be accompanied by an
original Consent to Issuance of QILDRO signed by the member on or after July 1,
2006.
b) If the original is unavailable, a certified copy of the
consent form filed with the court that issued the QILDRO is acceptable in lieu
of the original.
c) The Consent to Issuance of QILDRO must be in the form adopted
by SURS (including judicial district and county, case number and caption,
member's name and SSN, alternate payee's name and SSN, member's signature and
date) as of the date the QILDRO is received; otherwise it will be deemed
invalid. The required consent form is available from SURS upon request.
(Source: Amended at 33 Ill.
Reg. 10757, effective July 1, 2009)
| TITLE 80: PUBLIC OFFICIALS AND EMPLOYEES
SUBTITLE D: RETIREMENT SYSTEMS
CHAPTER II: STATE UNIVERSITIES RETIREMENT SYSTEM
PART 1600
UNIVERSITIES RETIREMENT
SECTION 1600.640 ALTERNATE PAYEE'S ADDRESS
Section 1600.640 Alternate
Payee's Address
a) An alternate payee is responsible to report to SURS, in
writing, each change in his or her name and residence address.
b) When a member's retirement benefit or refund subject to a
QILDRO becomes payable, SURS will send notice to the alternate payee's last
known address that the retirement benefit, refund or death benefit is payable.
Beyond that, SURS shall have no duty to take any other action to locate an
alternate payee.
c) If the notice is returned undelivered, SURS will hold the
amount payable to the alternate payee, as provided in Section 1-119(e)(2) of
the Pension Code for 180 days from the date SURS sent the notice or 180 days
from the date the benefit becomes payable, whichever is later. The amount held
will not bear interest.
d) If SURS is notified of the alternate payee's current address
within 180 days, SURS will release the amount held to the alternate payee. If
SURS does not learn of the alternate payee's current address within 180 days,
SURS will release the amount held to the member.
e) If SURS later learns of the alternate payee's current address,
SURS will implement the QILDRO, but the alternate payee will have no right to
any amounts already paid to the member.
(Source: Amended at 33 Ill.
Reg. 10757, effective July 1, 2009)
| TITLE 80: PUBLIC OFFICIALS AND EMPLOYEES
SUBTITLE D: RETIREMENT SYSTEMS
CHAPTER II: STATE UNIVERSITIES RETIREMENT SYSTEM
PART 1600
UNIVERSITIES RETIREMENT
SECTION 1600.645 ELECTING FORM OF PAYMENT
Section 1600.645 Electing
Form of Payment
a) A member whose benefit is subject to a QILDRO may not elect a
form of payment that would diminish the amount payable to the alternate payee,
unless the alternate payee has consented to such election in a notarized
written statement submitted to SURS, as provided in Section 1-119(j)(1) of the Pension
Code [40 ILCS 5/1-119(j)(1)].
b) A member's election either to receive or forego a proportional
annuity under the Retirement Systems Reciprocal Act [40 ILCS 5/Art. 20] is not
a prohibited election under Section 1-119(j)(1) of the Pension Code.
c) A member's election to take a refund is not a prohibited
election under Section 1-119(j)(1) of the Pension Code.
d) A member's election of a form of payment of annuity that
reduces the member's total benefit, while still allowing full payment to the
alternate payee under a QILDRO at the date of the election, is not a prohibited
election under Section 1-119(j)(1) of the Pension Code.
e) If there is some question as to whether an election would
diminish the amount payable to an alternate payee, SURS may hold the election
until clarification is obtained from a court of competent jurisdiction. It
shall be the duty of the member or alternate payee to obtain clarification.
(Source: Amended at 33 Ill.
Reg. 10757, effective July 1, 2009)
| TITLE 80: PUBLIC OFFICIALS AND EMPLOYEES
SUBTITLE D: RETIREMENT SYSTEMS
CHAPTER II: STATE UNIVERSITIES RETIREMENT SYSTEM
PART 1600
UNIVERSITIES RETIREMENT
SECTION 1600.650 AUTOMATIC ANNUAL INCREASES
Section 1600.650 Automatic
Annual Increases
a) The alternate payee will or will not receive a proportionate
share of any automatic annual increase in the member's retirement benefit under
Section 15-136 of the Pension Code, according to the designation in the QILDRO.
b) Except as provided in subsection (c) of this Section, the
initial increase in the amount due the alternate payee under the QILDRO is
payable with the next succeeding increase in the member's retirement benefit
after the date the QILDRO first took effect.
c) If the QILDRO first takes effect in the same month the
member's retirement benefit is increased, the alternate payee's initial
increase is not payable until the next increase in the member's retirement benefit.
d) SURS will calculate the amount of any increase payable to the
alternate payee under the QILDRO.
e) The amount of any increase payable to the alternate payee is
the percentage of increase applied to the member's retirement benefit under
Section 15-136 of the Pension Code, multiplied by the alternate payee's monthly
benefit as of the date of the increase.
(Source: Amended at 33 Ill.
Reg. 10757, effective July 1, 2009)
| TITLE 80: PUBLIC OFFICIALS AND EMPLOYEES
SUBTITLE D: RETIREMENT SYSTEMS
CHAPTER II: STATE UNIVERSITIES RETIREMENT SYSTEM
PART 1600
UNIVERSITIES RETIREMENT
SECTION 1600.655 EXPIRATION OF A QILDRO
Section 1600.655 Expiration
of a QILDRO
a) A QILDRO expires upon the death of the alternate payee. The
right to receive the affected benefit will then revert to the member.
b) A QILDRO expires upon the death of the member, except to the
extent that the order pertains to a death benefit.
c) A QILDRO expires when the member takes a refund that
terminates his or her participation in SURS. This is true even if the member's
refund is paid to an alternate payee. A QILDRO that expires because the member
took a refund is not renewed by his or her subsequent return to SURS
membership.
d) If a retired member returns to work, the QILDRO payments may
be suspended. If so, the payments will resume when the member retires again.
e) A
QILDRO expires by its terms or upon receipt of a certified copy of a court
order terminating the QILDRO.
f) A
QILDRO expires after the specified number of payments have been made to the
alternate payee under Section 1-119(n)III(D)(2) of the Pension Code, unless the
alternate payee is to receive all or a portion of the death benefit.
g) The
QILDRO expires upon payment of a death benefit or portion of the benefit to the
alternate payee under Section 1-119(n)VII of the Pension Code.
(Source: Amended at 33 Ill.
Reg. 10757, effective July 1, 2009)
| TITLE 80: PUBLIC OFFICIALS AND EMPLOYEES
SUBTITLE D: RETIREMENT SYSTEMS
CHAPTER II: STATE UNIVERSITIES RETIREMENT SYSTEM
PART 1600
UNIVERSITIES RETIREMENT
SECTION 1600.660 RECIPROCAL SYSTEMS QILDRO POLICY STATEMENT
Section 1600.660 Reciprocal
Systems QILDRO Policy Statement
It is the policy of SURS to
administer QILDROs in a manner consistent with the Policy Statement of the
Association of Retirement Systems on Qualified Illinois Domestic Relations
Orders (the Reciprocal Systems QILDRO Policy Statement). To the extent that there
is any conflict between this Subpart and the Reciprocal Systems QILDRO Policy
Statement, this Subpart shall control.
(Source: Amended at 33 Ill.
Reg. 10757, effective July 1, 2009)
| TITLE 80: PUBLIC OFFICIALS AND EMPLOYEES
SUBTITLE D: RETIREMENT SYSTEMS
CHAPTER II: STATE UNIVERSITIES RETIREMENT SYSTEM
PART 1600
UNIVERSITIES RETIREMENT
SECTION 1600.665 PROVIDING BENEFIT INFORMATION FOR DIVORCE PURPOSES
Section 1600.665 Providing
Benefit Information for Divorce Purposes
a) Information by Subpoena or Member Request. SURS shall provide
the information listed under Section 1-119(h)(1) of the Pension Code within 45
days after receipt of a subpoena from any party to a proceeding for declaration
of invalidity of marriage, legal separation or dissolution of marriage in which
a QILDRO may be issued, or after receiving a request from the member. If so
requested in the subpoena, SURS shall also provide in response general
retirement plan information available to a member and any relevant procedures,
rules or modifications to the model QILDRO.
b) QILDRO Division by Percentages. If a QILDRO provides for the
alternate payee to receive a percentage of the gross or marital portion of a
benefit, SURS shall provide the applicable information to the member and the
alternate payee, or to one designated representative of each, as indicated
below:
1) Self-Managed
Plan Account Divisions under Section 1-119(h)(1.5)(A) of the Pension Code. If
a member is a participant in the Self-Managed Plan and the QILDRO provides that
the only benefit the alternate payee is to receive is a percentage of the
member's vested account balance on a specific date that has already passed,
within 45 days after SURS receives the QILDRO SURS shall provide the account balance
to which the QILDRO percentage is to be applied.
2) Preliminary
Information under Section 1-119(h)(1.5)(B) of the Pension Code. SURS shall
provide the information listed under Section 1-119(h)(1.5)(B) of the Pension
Code within 45 days after receipt of the QILDRO.
3) Finalized
Information under Section 1-119(h)(1.5)(C) of the Pension Code. SURS shall
provide the information under Section 1-119(h)(1.5)(C) of the Pension Code
within 45 days after receipt of the QILDRO if received after the effective date
of retirement. If the QILDRO is received before the effective date of
retirement, SURS shall provide the information within 45 days after all
information necessary for the finalization of the member's benefits has been
received.
4) Death
Benefit Information under Section 1-119(h)(1.5)(D) of the Pension Code. If the
QILDRO divides a death benefit, SURS shall provide the information required
under Section 1-119(h)(1.5)(C) of the Pension Code within 45 days after receipt
of notice of the member's death or when administratively practicable, whichever
is later.
c) Information provided by SURS for divorce purposes does not include
the value of a member's retirement benefit accrued during an academic year for
which data are not yet on file with SURS.
d) Information provided by SURS for divorce purposes does not
reflect an actuarial opinion as to the present value of a member's retirement
benefit, refund or other interests.
e) Information provided by SURS for divorce purposes reflects the
member's total service career for which service credit in SURS has accrued, and
is not isolated as to the marital period only.
f) While SURS makes every effort to provide accurate information
for divorce purposes, benefit estimates are by their nature approximate and
subject to revision due to errors, omissions, erroneous assumptions, or future
changes in the rules and laws governing SURS.
g) SURS does not disclose information for divorce purposes to
spouses, former spouses, relatives or other third parties, including the
member's attorney, except in response to the member's written authorization to
release the information, in response to a subpoena, or in accordance with
subsections (a) and (b) of this Section.
(Source: Amended at 33 Ill.
Reg. 10757, effective July 1, 2009)
SUBPART G: BOARD TRUSTEE ELECTION
| TITLE 80: PUBLIC OFFICIALS AND EMPLOYEES
SUBTITLE D: RETIREMENT SYSTEMS
CHAPTER II: STATE UNIVERSITIES RETIREMENT SYSTEM
PART 1600
UNIVERSITIES RETIREMENT
SECTION 1600.700 NOMINATION OF CANDIDATES
Section 1600.700 Nomination of Candidates
a) The
Board Secretary shall determine the number and type of Board positions to be
filled at an election. The Secretary shall announce the election by October 1
preceding the next election.
b) Any
candidate for an open contributing membership position on the System's Board of
Trustees:
1) Shall
be, on the date voter eligibility is determined pursuant to Section 1600.715,
an employee who has been certified as a SURS covered employee by the employee's
employer and an employee for whom employee contributions have been received in
the previous 31 days;
2) Shall
be nominated by a written petition and/or if offered
by SURS, by a petition with electronic signatures submitted via an independent,
secure third-party vendor selected by SURS, signed by no fewer than 400
individuals who, as of the date of signing, were participants. Each candidate must submit their own petition and/or
obtain electronic signatures on behalf of their own candidacy. Single petitions
listing multiple candidates will not be accepted.
c) Any
candidate for an open annuitant position on the System's Board of Trustees:
1) Must
have been an annuitant for at least one full year prior to the Election Date as
determined pursuant to Section 1600.705;
2) Shall
be nominated by a written petition and/or offered by
SURS, by a petition with electronic signatures submitted via an independent,
secure third-party vendor selected by SURS, signed by no fewer than 100
individuals who, as of the date of signing, were annuitants. Each candidate must submit their own petition and/or obtain
electronic signatures on behalf of their own candidacy. Single petitions
listing multiple candidates will not be accepted.
d) For
purposes of determining whether a SURS member is a contributing member,
participant, or annuitant pursuant to this Subpart G:
1) A
SURS member who is a contributing member or participant in the Self-Managed
Plan, described in Section 15-158.2 of the Pension Code, is eligible under the
same terms as SURS members who are in the traditional or portable benefit
package, described in Sections 15-103.1 and 15-103.2, respectively, of the
Pension Code, and a benefit recipient pursuant to an annuity contract purchased
under the self-managed plan is an annuitant;
2) A
SURS member receiving a preliminary estimated payment pursuant to Section
1600.420 is an annuitant;
3) A
SURS member receiving a disability pursuant to Section 15-150 of the Illinois
Pension Code is not an annuitant, but is considered a contributing member for
purposes of Board elections.
e) All
candidates must complete an application in the form adopted by the System.
Candidate application forms may be obtained from the Board Secretary, upon
written or oral request by the candidate, on or after October 1 immediately
preceding the Election Date. The completed candidate application form shall be
submitted to the Board Secretary by the December 31 immediately preceding the
Election Date.
f) The
Board Secretary shall determine the eligibility of candidates pursuant to the
Illinois Pension Code and this Part. If a candidate should become ineligible
for the Board position after submission of the candidate application form, but
before the election, the Board Secretary shall declare the candidate ineligible
and remove that candidate from the ballot. If a candidate should become
ineligible for the Board position after the printing of the ballots, the
ineligible candidate's votes shall not be counted.
(Source: Amended at 45 Ill.
Reg. 6649, effective May 11, 2021)
| TITLE 80: PUBLIC OFFICIALS AND EMPLOYEES
SUBTITLE D: RETIREMENT SYSTEMS
CHAPTER II: STATE UNIVERSITIES RETIREMENT SYSTEM
PART 1600
UNIVERSITIES RETIREMENT
SECTION 1600.705 ELECTION DATE/ELECTION DAY DEFINED
Section 1600.705 Election
Date/Election Day – Defined
a) The term "Election Date" or "Election
Day" shall mean May 1.
b) If the Election Day falls on a Saturday, Sunday or holiday,
the election will be held the next day on which the System is open for
business. The final tabulation of ballots shall be completed on the next
business day after Election Day.
(Source: Added at 35 Ill.
Reg. 10952, effective June 22, 2011)
| TITLE 80: PUBLIC OFFICIALS AND EMPLOYEES
SUBTITLE D: RETIREMENT SYSTEMS
CHAPTER II: STATE UNIVERSITIES RETIREMENT SYSTEM
PART 1600
UNIVERSITIES RETIREMENT
SECTION 1600.710 PETITIONS
Section 1600.710 Petitions
a) All
petitions shall be in the form adopted by the System. Petition forms may be
obtained from the System on or after October 1 immediately preceding the
Election Date. The petition forms may be photocopied for use by the
candidates. If offered by SURS, petition signatures
can also be submitted electronically via an independent, secure third-party
vendor selected by SURS to accept electronic signatures.
b) A
valid petition nominating a candidate for an open contributing membership
position or an open annuitant position on the System's Board of Trustees shall
meet the following requirements:
1) On
page one of the petition the potential candidate must sign the petition as one
of the nominating signatories. The signature shall constitute the potential
candidate's confirmation that he or she is willing to be a candidate. If using the offered third-party vendor for submitting
electronic signatures, the candidates may submit their own signatures
electronically as well.
2) The
petition must bear the requisite number of original signatures of individuals
eligible to nominate the candidate, as established by Section 1600.700(b) or (c).
A valid petition may consist of multiple pages and may contain blank signature
lines; however, all valid signatures must be original signatures unless they are submitted via an offered third-party
vendor. Each candidate must submit their own petition and/or obtain electronic
signatures on behalf of their own candidacy. Single petitions listing multiple
candidates will not be accepted.
3) Each original
or electronic signature of an eligible voter must be accompanied by the signing
person's name (printed), home address (street and city), and SURS employer (or
last SURS employer). Signatures that are not accompanied by a full permanent address
will not be accepted.
4) Petitions
may be circulated for signatures commencing the October 1 immediately preceding
the applicable Election Date and ending on January 31.
5) An
individual eligible to sign a petition nominating a candidate for an open
contributing membership position on the Board may sign original and/or
electronic petitions for as many contributing membership position candidates as
desired.
6) An
individual eligible to sign a petition nominating a candidate for an open
annuitant position on the Board may sign original and/or electronic petitions
for as many annuitant candidates as desired.
7) Original-hardcopy
petitions shall bear the notarized signature of the individual who circulated
the petition for signatures, verifying that the signatures contained on the
petition were signed in that individual's presence and are genuine, and that,
to the best of the circulating individual's knowledge, the persons who signed
the petition were eligible to do so under Section 1600.700(b) or (c). These
requirements do not apply to petition signatures submitted electronically
through the third-party vendor offered by SURS.
8) Original
petitions and petitions with electronic signatures shall be filed with and must
be received by the Board Secretary by the January 31 immediately preceding the
Election Day. Petitions received after the prescribed petition-filing period
are invalid and will not be counted.
c) The
Board Secretary shall determine the validity of petitions pursuant to the
Illinois Pension Code and this Part not less than 75 days prior to the Election
Day and notify all candidates in accordance with the election calendar whether
their petitions met all petition requirements. Candidates filing conforming
petitions will be added to the slate of candidates on the respective ballot.
d) Any
individual may, upon reasonable notice to the System, examine the petitions
that have been filed with the System with respect to the election to take
place; provided, however, that in order to protect the signing participants'
and annuitants' privacy and confidentiality, the examination shall be subject
to the following limitations:
1) Petitions
that are examined will be duplicate copies of the original petitions filed
and/or printouts of electronic signatures filed, with any confidential
information redacted;
2) Petitions
and electronic signatures may only be examined at the System's offices after
the validity of the petitions has been verified by the Board Secretary as
provided in subsection (c); and
3) Petitions
and electronic signatures may not be removed from the System's offices, copied,
or duplicated by any means.
e) Challenge to the Petition
Validation Process
1) The
challenger shall submit a written statement identifying the specific aspects of
the petition validation process that is being challenged.
2) All
challenges shall be submitted to the Board Secretary no later than 7 days after
the petition validation notification required in subsection (c). Any challenge
submitted more than 7 days after the date of the notification shall not be
considered. The Board Secretary shall transmit any challenges to a 3 member
committee of the Board, comprised of members of the Board not running in the
contested election.
3) The committee
shall consider the written statement and proceed to make a final determination
with respect to the challenge.
4) A
written notice of the final determination shall be sent to the challenger and
all candidates within 7 days after making the determination.
5) The
determination of the committee shall constitute a final administrative decision
for purposes of the Administrative Review Law [305 ILCS 5/Art. III].
(Source: Amended at 49 Ill.
Reg. 3321, effective February 26, 2025)
| TITLE 80: PUBLIC OFFICIALS AND EMPLOYEES
SUBTITLE D: RETIREMENT SYSTEMS
CHAPTER II: STATE UNIVERSITIES RETIREMENT SYSTEM
PART 1600
UNIVERSITIES RETIREMENT
SECTION 1600.715 ELIGIBLE VOTERS
Section 1600.715 Eligible Voters
a) An
individual is eligible to vote for a contributing membership position on the
Board of Trustees of the System if he or she was a contributing member, defined
as an employee who has been certified as a SURS covered employee by the
employee's employer and an employee for whom employee contributions have been
received in the previous 31 days, except as provided for in subsection (e), as
of March 1 of the year in which the election is held.
b) An
individual is eligible to vote for an open annuitant position on the Board of
Trustees of the System if he or she was an annuitant as of March 1 of the year
in which the election is held.
c) A
person who is eligible to vote for a contributing membership position pursuant
to subsection (a) is not eligible to vote for an open annuitant position.
d) A
person who is eligible to vote for an annuitant position pursuant to subsection
(b) is not eligible to vote for an open contributing membership position.
e) A
SURS member receiving a disability pursuant to Section 15-150 of the Illinois
Pension Code is not an annuitant but is considered a contributing member for
purposes of Board elections.
(Source: Amended at 44 Ill.
Reg. 17714, effective October 22, 2020)
| TITLE 80: PUBLIC OFFICIALS AND EMPLOYEES
SUBTITLE D: RETIREMENT SYSTEMS
CHAPTER II: STATE UNIVERSITIES RETIREMENT SYSTEM
PART 1600
UNIVERSITIES RETIREMENT
SECTION 1600.720 ELECTION MATERIALS
Section
1600.720 Election Materials
a) The
Board Secretary may procure a qualified election services vendor and determine
the voting methods, specific voting instructions and security measures to be
used in the election, subject to the approval of the Board.
b) At
least 30 business days prior to the Election Day, the following election
materials shall be emailed to the eligible voter's latest email address known
to the System:
1) Electronic
instructions for accessing an electronic ballot listing, in order determined by
random, blind lottery conducted by the Board Secretary, either the contributing
membership candidates or the annuitant candidates, depending on the basis for
the individual's eligible voter status as provided in Section 1600.715, using
the entire name of each candidate in the System records on the first day
nomination petitions can be accepted;
2) Instructions
for accessing candidate provided biographies in the location, format and length
specified and approved by the Board Secretary;
3) Instructions
for voting methods as specified by the Board Secretary, including instructions
for voting online or by phone. These instructions will also include the voting
deadline.
4) Instructions
for requesting from the election vendor a mailing of the preprinted election
materials specified in subsection (c). Individual eligible voters may choose
to request hard copy materials, including a hard copy ballot, from the election
vendor even if they have a valid email address on file with SURS. If a request
is made for a hard copy ballot, the eligible voter can cast his or her vote
online, by phone, or by returning the hard copy ballot by the election
deadline. Only the first ballot received by the election vendor will be
counted.
c) For
voters without a valid email address on file with SURS, at least 30 business
days prior to the Election Day, and for voters for whom the email delivery
attempt in subsection (b) was unsuccessful, as soon as administratively
practicable after the election vendor is notified that the email delivery
attempt was unsuccessful, the following election materials shall be mailed to
the eligible voter's latest mailing address known to the System:
1) A
preprinted paper ballot listing, in order determined by random, blind lottery
conducted by the Board Secretary, either the contributing membership candidates
or the annuitant candidates, depending on the basis for the individual's
eligible voter status as provided in Section 1600.715, using the entire name of
each candidate in the System records on the first day nomination petitions can
be accepted;
2) Preprinted
paper candidate provided biographies in the format and length specified and
approved by the Board Secretary;
3) Instructions
for voting methods specified by the Board Secretary, including instructions for
voting online, by phone or by regular mail. These instructions shall also
include the voting deadline;
4) A
preprinted, return envelope.
d) If an
eligible voter is unable to access his or her election materials as specified
in subsection (b) or did not receive the preprinted election materials mailed
to him or her as specified in subsection (c), the eligible voter may request
that the election vendor send replacement election materials to him or her by
providing a current mailing address or a valid email address. Preprinted paper
ballots, candidate biographies and other election information will not be
mailed out within 5 business days prior to the Election Date; however, electronic
ballots and instructions for accessing candidate election information will be
electronically transmitted if authorized by the eligible voter at least one day
prior to the Election Date. If an eligible voter incorrectly marks or spoils
his or her paper ballot prior to returning it, the eligible voter may request a
new set of election materials from the election vendor at least 5 business days
prior to the Election Date. Paper ballots already mailed to the election vendor,
or electronic or phone ballots that have already been cast by the eligible
voter, shall not be replaced or revoked. The member's identity as an eligible
voter shall be authenticated prior to sending out replacement election
materials.
e) If
previously mailed election materials are returned to the election vendor
undelivered at least 5 business days prior to the Election Date and a
forwarding address has been provided, the election vendor shall mail election
materials to the forwarding address via first class U.S. mail.
f) In
addition to the election materials distributed by the election vendor, SURS
will post candidate biographies, in the format and length specified and
approved by the Board Secretary, on its website at least 30 days prior to the
election.
(Source: Amended at 41 Ill.
Reg. 15353, effective December 5, 2017)
| TITLE 80: PUBLIC OFFICIALS AND EMPLOYEES
SUBTITLE D: RETIREMENT SYSTEMS
CHAPTER II: STATE UNIVERSITIES RETIREMENT SYSTEM
PART 1600
UNIVERSITIES RETIREMENT
SECTION 1600.725 CASTING VOTES
Section 1600.725 Casting
Votes
A valid ballot, whether paper or electronic, must conform to
the following requirements:
a) All
choices of candidates must be clearly indicated as directed on the voting
instructions. If paper ballots are not marked as directed, the marks are
invalid and the associated votes will not be counted. An invalid mark for one
candidate will not negate other valid marks on the ballot.
b) Each eligible voter is
entitled to only one vote for any particular candidate.
c) With
respect to a ballot on which more than one trustee is to be elected, each
eligible voter may vote for only one candidate for each position to be
elected. If more candidates are selected than the number of positions to be
elected, the ballot is invalid and will not be counted. If the number of
candidates selected is fewer than the number of positions to be elected, the
selection or selections will each count as only one vote.
d) Only
official SURS paper ballots or votes received via other authorized voting
methods will be counted. Write-in candidates are invalid and will not be
counted.
(Source: Amended at 38 Ill.
Reg. 17457, effective July 30, 2014)
| TITLE 80: PUBLIC OFFICIALS AND EMPLOYEES
SUBTITLE D: RETIREMENT SYSTEMS
CHAPTER II: STATE UNIVERSITIES RETIREMENT SYSTEM
PART 1600
UNIVERSITIES RETIREMENT
SECTION 1600.730 RETURN OF BALLOTS AND BALLOT COUNTING PROCESS
Section 1600.730 Return of Ballots and Ballot Counting
Process
a) For
paper ballots, upon receipt of the election materials specified in Section
1600.720, the eligible voter shall:
1) Mark
his or her ballot in accordance with Section 1600.725;
2) Place
the completed ballot into the return envelope provided;
3) Seal
and mail, via U.S. mail only, the return envelope; and
4) Mail
paper ballots in the return envelope provided. The ballot shall be mailed only
to the address on the envelope. Paper ballots delivered to the System in bulk,
via hand delivery, by campus mail, or delivery other than as specified in this
subsection (a)(4) are invalid and will not be counted.
b) Ballots
must be received by the close of business on Election Day. Ballots received
after Election Day are invalid and will not be counted. A record of the
receipt date of each ballot will be maintained.
c) When
multiple voting methods are authorized, the first ballot cast will be counted
as the official ballot and any subsequent votes will not be counted. The Board
Secretary will develop procedures to ensure that only one ballot may be
received from each eligible voter.
d) The
Board Secretary will develop minimum standards to ensure ballots are properly
recorded, secured, tabulated and retained.
e) When
all eligible ballots have been counted and tabulated, the necessary number of
contributing members and annuitants who have received the greatest number of
votes will be elected trustees; provided, however, the Board Secretary will
ensure that, for the final composition of the Board, no more than 2 of the 4 contributing
members are current employees of the University of Illinois at any of the
campuses (Urbana-Champaign, Chicago, or Springfield) and no more than one of
the 2 annuitants was last employed prior to retirement by the University of
Illinois at any of the campuses. If the maximum number of University
of Illinois positions has been filled, then any remaining positions shall be
filled as follows:
1) The
remaining contributing member trustee positions will be filled by the
contributing member nominees who are not current employees of the University of Illinois at any of the campuses and who received the greatest number of
votes.
2) The
remaining annuitant trustee positions will be filled by annuitant nominees who
were not last employed prior to retirement by the University of Illinois
at any of the campuses and who received the greatest number of votes.
3) In
case of a tie, the contributing member nominee or annuitant nominee who will be
elected will be determined by blind, random drawing.
4) The
results of the election process then will be declared by the Board Secretary.
f) The
Board Secretary will certify to the Board the elected trustees by category and
term of office. The Board Secretary will further certify the place of
employment for each contributing member and the last place of employment prior
to retirement for each annuitant.
g) In
any trustee election that can be filled by one or more candidates who are
currently employed by or were last employed by any of the University of
Illinois campuses, if the number of the highest vote-getting candidates
affiliated with the University of Illinois campuses would cause the Board to
exceed the participant limit of 2 established by Section 15-159(d)(3) or the annuitant
limit of 1 established by Section 15-159(d)(4) of the Code, those candidates
shall be seated, in order beginning with the longest elected term available,
until the applicable limit of University of Illinois trustees is reached. All
remaining University of Illinois affiliated candidates shall immediately be
disqualified regardless of the number of votes they received or the elected
term for which they ran. Each remaining seat shall then be filled by the
non-University of Illinois candidate receiving the highest number of votes for
that seat.
(Source: Amended at 45 Ill.
Reg. 2259, effective February 5, 2021)
| TITLE 80: PUBLIC OFFICIALS AND EMPLOYEES
SUBTITLE D: RETIREMENT SYSTEMS
CHAPTER II: STATE UNIVERSITIES RETIREMENT SYSTEM
PART 1600
UNIVERSITIES RETIREMENT
SECTION 1600.735 CERTIFICATION OF BALLOT COUNTING
Section 1600.735 Certification
of Ballot Counting
The ballot tabulating process shall be certified to the
System in writing by an independent consultant at least 7 days prior to the
Election Day. The election results shall be certified to the System either by
an independent consultant or by the entity tabulating the results. The ballot
tabulation process and election results will not be disclosed or announced
until written certification is provided to the System.
(Source: Added at 35 Ill.
Reg. 10952, effective June 22, 2011)
| TITLE 80: PUBLIC OFFICIALS AND EMPLOYEES
SUBTITLE D: RETIREMENT SYSTEMS
CHAPTER II: STATE UNIVERSITIES RETIREMENT SYSTEM
PART 1600
UNIVERSITIES RETIREMENT
SECTION 1600.740 CHALLENGES TO ELECTION RESULTS
Section 1600.740 Challenges to Election Results
a) Any challenge to the
election results shall be made in the following manner:
1) The
challenger shall submit a written statement identifying the specific aspects of
the election results that are being challenged.
2) All
challenges shall be submitted to the Board Secretary no later than 7 days after
the election results have been certified. Any challenge submitted more than 7
days after the election results have been certified shall not be considered.
b) The
written statement timely submitted in accordance with subsection (a) shall be
presented to and considered by the Board at the next regularly scheduled
quarterly meeting of the Board. The challenger shall have no right to make a
presentation at the Board meeting. The Board shall, in its sole discretion,
determine what steps, if any, need to be taken in response to the challenge,
including, but not limited to, modifying the election results declared.
c) In
the event that election results have already been declared, the election
results shall remain valid pending determination of any challenge.
d) A
written notice of the final determination shall be sent to the challenger and
all candidates within 7 days after making the determination. This notice shall
constitute a final administrative decision of the Board for purposes of the
Administrative Review Law.
(Source: Added at 35 Ill.
Reg. 10952, effective June 22, 2011)
| TITLE 80: PUBLIC OFFICIALS AND EMPLOYEES
SUBTITLE D: RETIREMENT SYSTEMS
CHAPTER II: STATE UNIVERSITIES RETIREMENT SYSTEM
PART 1600
UNIVERSITIES RETIREMENT
SECTION 1600.745 CANDIDATE INFORMATIONAL COMMUNICATION
Section 1600.745 Candidate Informational Communication
During any election period commencing the January 1
immediately preceding the Election Date and ending the day after the Election
Date, the System will make available a blind mailing list containing address
files or e-mail lists of eligible voters for election candidates or other
organizations to send additional informational material about the candidate.
a) The
System may assist an organization in sending out one e-mail or hardcopy
communication per candidate per election cycle by providing a blind mailing
list to a third-party service firm hired by the organization. Organizations
must validly exist pursuant to law and must provide a mailing address and
contact information to the System at the same time that a request is made for a
blind mailing list.
b) The
System may assist each candidate with sending out one communication per
election cycle by:
1) providing
a blind mailing list to a third-party service firm for an e-mail or hardcopy
communication; or
2) sending
an e-mail communication through a third-party service firm hired by the System.
c) All
third-party service firms must limit the use of the blind mailing list to
ensure only one communication is distributed per candidate, per organization. The
third-party service firm must guarantee security of the blind mailing list and
only use the member contact information for communication of candidate
informational materials.
d) The
System will not incur any of the costs to produce, mail or e-mail the
additional candidate information, except for the one e-mail communication
referenced in subsection (b)(2).
e) Regardless
of the source of distribution, whether the communication is distributed by SURS
or a SURS-approved third-party service firm, the contents of the informational
materials must be approved by the SURS Board Secretary prior to the mailing or
e-mailing.
(Source: Amended at 48 Ill.
Reg. 4218, effective February 29, 2024)
| TITLE 80: PUBLIC OFFICIALS AND EMPLOYEES
SUBTITLE D: RETIREMENT SYSTEMS
CHAPTER II: STATE UNIVERSITIES RETIREMENT SYSTEM
PART 1600
UNIVERSITIES RETIREMENT
SECTION 1600.750 FILLING A VACANCY IN THE TERM OF AN ELECTED TRUSTEE
Section 1600.750 Filling a Vacancy in the Term of an
Elected Trustee
a) A
vacancy occurring in the elected membership of the Board shall be filled by the
elected trustees as prescribed in Section 15-159(e) of the Pension Code.
b) The
elected trustees shall fill an unexpired term with currently eligible
candidates or replacements otherwise satisfying the conditions in Sections
1600.700(b)(1) or (c)(1) and 1600.730(d) as follows:
1) If an
elected trustee position becomes vacant within the first 3 years of a term, the
vacant position shall temporarily be filled until the July 15 following the next
regularly scheduled Election Date. The remaining 3 years of the term shall be
permanently filled at the next available election. However, if a vacancy
occurs within 6 months prior to the next election, the remaining elected
trustees may choose to leave the position vacant until that election. The
vacant position openings and term lengths shall be filled as follows:
A) The
vacant position shall be temporarily filled by the elected members using the
eligibility rules provided in Section 1600.700(b)(1) and the process rules
provided in subsection (b)(3) of this Section.
B) If the
vacancy occurs prior to the January 1 immediately preceding the next election,
the vacant positions shall be filled for the remainder of the term (years 4-6),
through the election process, by adding the appropriate number of available
positions to the ballot at the next available election.
C) If a
vacancy occurs prior to the January 1 immediately preceding the next election,
and an election is required under Section 15-159(e) of the Pension Code, the
term lengths shall be determined with the candidates receiving the greatest
number of votes awarded the 6 year terms.
D) If a
vacancy occurs prior to the January 1 immediately preceding the next election
and an election is not otherwise necessary under Section 15-159(e), term
lengths shall be determined by blind random drawing.
2) If an
elected trustee position becomes vacant within the last 3 years of a term, the vacant
position shall be filled for the remainder of the term by the elected members
using the eligibility rules provided in this subsection (b) and the process
rules provided in subsection (b)(3). However, if a vacancy occurs within 6
months prior to the next election, the remaining elected trustees may choose to
leave the position vacant until that election.
3) Unexpired
terms will be filled by the elected membership using the process outlined in
this subsection (b)(3). The Board Secretary will announce the vacancy via a
press release and request nominations be submitted by a certain date in the
form adopted by the System. Once the nomination period has ended, the Board
Secretary shall determine the eligibility of the candidates pursuant to Section
15-159 of the Pension Code and the eligibility qualifications provided in this subsection
(b). The list of eligible nominees will be submitted to all elected members of
the Board for consideration of which candidate would best represent the
contributing members or annuitants, respectively. Departing elected members
shall not be eligible to participate in the replacement process. Majority
voting of all elected members will determine the appointee. If the elected
members cannot decide on a replacement, the full Board may declare a special
election to fill the vacancy.
(Source: Amended at 37 Ill.
Reg. 15517, effective September 12, 2013)
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