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Public Act 098-1144 | ||||
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AN ACT concerning public employee benefits.
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Be it enacted by the People of the State of Illinois, | ||||
represented in the General Assembly:
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Section 5. The Illinois Pension Code is amended by changing | ||||
Section 15-139.5 as follows: | ||||
(40 ILCS 5/15-139.5) | ||||
Sec. 15-139.5. Return to work by affected annuitant; notice | ||||
and contribution by employer. | ||||
(a) An employer who employs or re-employs a person | ||||
receiving a retirement annuity from the System in an academic | ||||
year beginning on or after August 1, 2013 must notify the | ||||
System of that employment within 60 days after employing the | ||||
annuitant. The notice must include a summary of the contract of | ||||
employment or specify the rate of compensation and the | ||||
anticipated length of employment of that annuitant. The notice | ||||
must specify 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. | ||||
The notice must include the employer's determination of whether | ||||
or not the annuitant is an "affected annuitant" as defined in | ||||
subsection (b). | ||||
The employer must also record, document, and certify to the | ||||
System (i) the amount of compensation paid to the annuitant for |
employment during the academic year, and (ii) the amount of | ||
that compensation, if any, that comes from either federal, | ||
corporate, foundation, or trust funds or grants of State funds | ||
that identify the principal investigator by name. | ||
As used in this Section, "academic year" means the 12-month | ||
period beginning September 1. | ||
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 re-employed by that employer in each | ||
of those academic years. | ||
The System may specify the time, form, and manner of | ||
providing the determinations, notifications, certifications, | ||
and documentation required under this Section. | ||
(b) A person receiving a retirement annuity from the System | ||
becomes an "affected annuitant" on the first day of the | ||
academic year following the academic year in which the | ||
annuitant first meets the following conditions condition : | ||
(1) (Blank). | ||
(2) While receiving a retirement annuity under this | ||
Article, the annuitant was employed on or after August 1, | ||
2013 by one or more employers under this 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. | ||
(3) The annuitant received an annualized retirement | ||
annuity under this Article of at least $10,000. | ||
A person who becomes an affected annuitant remains an | ||
affected annuitant, except for any period during which the | ||
person returns to active service and does not receive a | ||
retirement annuity from the System. | ||
(c) 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 (a) does not excuse the employer from making | ||
the contribution required under subsection (e). | ||
The System may assist the employer in determining whether a | ||
person is an affected annuitant. The System shall inform the | ||
employer if it discovers that the employer's determination is | ||
inconsistent with the employment and earnings information in | ||
the System's records. | ||
(d) Upon the request of an annuitant, the System shall | ||
certify to the annuitant or the employer the following | ||
information as reported by the employers, as that information | ||
is indicated in the records of the System: (i) the annuitant's | ||
highest annual earnings prior
to retirement, (ii) the |
compensation paid for that employment in each academic year, | ||
and (iii) whether any of that employment or compensation has | ||
been certified to the System as being paid from federal, | ||
corporate, foundation, or trust funds or grants of State funds | ||
that identify the principal investigator by name. The System | ||
shall only be required to certify information that is received | ||
from the employers. | ||
(e) In addition to the requirements of subsection (a), an | ||
employer who employs an affected annuitant must pay to the | ||
System an employer contribution in the amount and manner | ||
provided in this Section, unless the annuitant is compensated | ||
by that employer solely from federal, corporate, foundation, or | ||
trust funds or grants of State funds that identify the | ||
principal investigator by name. | ||
The employer contribution required under this Section for | ||
employment of an affected annuitant in an academic year 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 that employment in that academic year occurs, | ||
after any reduction in that annuity that may be imposed under | ||
subsection (b) of Section 15-139. | ||
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. | ||
If the System 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 the System or to correctly document or | ||
certify to the System any of the information required by this | ||
Section, and that failure results in a delayed determination by | ||
the System that a contribution is payable under this Section, | ||
then the amount of that employer's contribution otherwise | ||
determined under this Section shall be doubled. | ||
The System shall deem a failure to correctly determine the | ||
annuitant's status to be justified if the employer establishes | ||
to the System's 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. | ||
(f) Whenever the System determines that an employer is | ||
liable for a contribution under this Section, it shall so | ||
notify the employer and certify the amount of the contribution. | ||
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 the System's prescribed | ||
rate of interest, compounded annually from the 366th day after |
receipt of the certification from the System. 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 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. | ||
(g) If an employer is required to make a contribution to | ||
the System 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 subsection (c) of Section | ||
15-139, 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. | ||
(h) Notwithstanding any other provision of this Article, | ||
the employer contribution required under this Section shall not | ||
be included in the determination of any benefit under this | ||
Article or any other Article of this Code, regardless of | ||
whether the annuitant returns to active service, and is in | ||
addition to any other State or employer contribution required | ||
under this Article. | ||
(i) 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 this Section for that annuitant. The | ||
employer shall, however, immediately notify the System upon | ||
employing a person subject to this subsection (i). For the | ||
purposes of this subsection (i), "critical operations" means | ||
teaching services, medical services, student welfare services, | ||
and any other services that are critical to the mission of the | ||
employer.
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(j) This Section shall be applied and coordinated with the | ||
regulatory obligations contained in the State Universities | ||
Civil Service Act. This Section shall not apply to an annuitant | ||
if the employer of that annuitant provides documentation to the | ||
System that (1) the annuitant is employed in a status | ||
appointment position, as that term is defined in 80 Ill. Adm. | ||
Code 250.80, and (2) due to obligations contained under the | ||
State Universities Civil Service Act, 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. | ||
(Source: P.A. 97-968, eff. 8-16-12; 98-596, eff. 11-19-13.) |