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 91^st 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 91^st 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)