Sen. Daniel Biss

Filed: 3/14/2014





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2    AMENDMENT NO. ______. Amend Senate Bill 2887 by replacing
3everything after the enacting clause with the following:
4    "Section 5. The Illinois Pension Code is amended by
5changing Section 15-139.5 as follows:
6    (40 ILCS 5/15-139.5)
7    Sec. 15-139.5. Return to work by affected annuitant; notice
8and contribution by employer.
9    (a) An employer who employs or re-employs a person
10receiving a retirement annuity from the System in an academic
11year beginning on or after August 1, 2013 must notify the
12System of that employment within 60 days after employing the
13annuitant. The notice must include a summary of the contract of
14employment or specify the rate of compensation and the
15anticipated length of employment of that annuitant. The notice
16must specify whether the annuitant will be compensated from



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1federal, corporate, foundation, or trust funds or grants of
2State funds that identify the principal investigator by name.
3The notice must include the employer's determination of whether
4or not the annuitant is an "affected annuitant" as defined in
5subsection (b).
6    The employer must also record, document, and certify to the
7System (i) the amount of compensation paid to the annuitant for
8employment during the academic year, and (ii) the amount of
9that compensation, if any, that comes from either federal,
10corporate, foundation, or trust funds or grants of State funds
11that identify the principal investigator by name.
12    As used in this Section, "academic year" means the 12-month
13period beginning September 1.
14    For the purposes of this Section, an annuitant whose
15employment by an employer extends over more than one academic
16year shall be deemed to be re-employed by that employer in each
17of those academic years.
18    The System may specify the time, form, and manner of
19providing the determinations, notifications, certifications,
20and documentation required under this Section.
21    (b) A person receiving a retirement annuity from the System
22becomes an "affected annuitant" on the first day of the
23academic year following the academic year in which the
24annuitant first meets the following conditions condition:
25        (1) (Blank).
26        (2) While receiving a retirement annuity under this



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1    Article, the annuitant was employed on or after August 1,
2    2013 by one or more employers under this Article and
3    received or became entitled to receive during an academic
4    year compensation for that employment in excess of 40% of
5    his or her highest annual earnings prior to retirement;
6    except that compensation paid from federal, corporate,
7    foundation, or trust funds or grants of State funds that
8    identify the principal investigator by name is excluded.
9        (3) The annuitant received an annualized retirement
10    annuity under this Article of at least $10,000.
11    A person who becomes an affected annuitant remains an
12affected annuitant, except for any period during which the
13person returns to active service and does not receive a
14retirement annuity from the System.
15    (c) It is the obligation of the employer to determine
16whether an annuitant is an affected annuitant before employing
17the annuitant. For that purpose the employer may require the
18annuitant to disclose and document his or her relevant prior
19employment and earnings history. Failure of the employer to
20make this determination correctly and in a timely manner or to
21include this determination with the notification required
22under subsection (a) does not excuse the employer from making
23the contribution required under subsection (e).
24    The System may assist the employer in determining whether a
25person is an affected annuitant. The System shall inform the
26employer if it discovers that the employer's determination is



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



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1after any reduction in that annuity that may be imposed under
2subsection (b) of Section 15-139.
3    If an affected annuitant is employed by more than one
4employer in an academic year, the employer contribution
5required under this Section shall be divided among those
6employers in proportion to their respective portions of the
7total compensation paid to the affected annuitant for that
8employment during that academic year.
9    If the System determines that an employer, without
10reasonable justification, has failed to make the determination
11of affected annuitant status correctly and in a timely manner,
12or has failed to notify the System or to correctly document or
13certify to the System any of the information required by this
14Section, and that failure results in a delayed determination by
15the System that a contribution is payable under this Section,
16then the amount of that employer's contribution otherwise
17determined under this Section shall be doubled.
18    The System shall deem a failure to correctly determine the
19annuitant's status to be justified if the employer establishes
20to the System's satisfaction that the employer, after due
21diligence, made an erroneous determination that the annuitant
22was not an affected annuitant due to reasonable reliance on
23false or misleading information provided by the annuitant or
24another employer, or an error in the annuitant's official
25employment or earnings records.
26    (f) Whenever the System determines that an employer is



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1liable for a contribution under this Section, it shall so
2notify the employer and certify the amount of the contribution.
3The employer may pay the required contribution without interest
4at any time within one year after receipt of the certification.
5If the employer fails to pay within that year, then interest
6shall be charged at a rate equal to the System's prescribed
7rate of interest, compounded annually from the 366th day after
8receipt of the certification from the System. Payment must be
9concluded within 2 years after receipt of the certification by
10the employer. If the employer fails to make complete payment,
11including applicable interest, within 2 years, then the System
12may, after giving notice to the employer, certify the
13delinquent amount to the State Comptroller, and the Comptroller
14shall thereupon deduct the certified delinquent amount from
15State funds payable to the employer and pay them instead to the
17    (g) If an employer is required to make a contribution to
18the System as a result of employing an affected annuitant and
19the annuitant later elects to forgo his or her annuity in that
20same academic year pursuant to subsection (c) of Section
2115-139, then the required contribution by the employer shall be
22waived, and if the contribution has already been paid, it shall
23be refunded to the employer without interest.
24    (h) Notwithstanding any other provision of this Article,
25the employer contribution required under this Section shall not
26be included in the determination of any benefit under this



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



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1employment for the annuitant while employed in the status
2appointment position.
3(Source: P.A. 97-968, eff. 8-16-12; 98-596, eff. 11-19-13.)".