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Bill > SB1267


IL SB1267

IL SB1267
PEN CD-IMRF-ANNUITY SUSPENSION


summary

Introduced
01/28/2025
In Committee
03/21/2025
Crossed Over
Passed
Dead

Introduced Session

104th General Assembly

Bill Summary

Amends the Illinois Municipal Retirement Fund (IMRF) Article of the Illinois Pension Code. Provides that if any annuitant must be considered a participating employee because there was not a separation from service and the participating municipality or participating instrumentality that employs or re-employs that annuitant knowingly fails to notify the Board to suspend the annuity, the Board may review the totality of circumstances regarding the annuitant not having a separation of service and assign proportionate responsibility for reimbursement of the total of any annuity payments made to the annuitant after the date the annuity should have been suspended, as determined by the Board, between the participating municipality or participating instrumentality and the annuitant, less any amount actually repaid by the annuitant. Provides that in no case shall the total amount repaid by the annuitant plus any amount reimbursed by the employer to the Fund be more than the total of all annuity payments made to the annuitant after the date the annuity should have been suspended. Removes language providing that the provisions shall not apply if the annuitant returned to work for the employer for less than 12 months. Adds similar provisions to a provision concerning separation from service and entitlement to a retirement annuity. Amends the State Mandates Act to require implementation without reimbursement.

AI Summary

This bill amends the Illinois Municipal Retirement Fund (IMRF) Article of the Illinois Pension Code to address situations where an annuitant returns to work without a proper separation from service. Specifically, if a participating municipality knowingly fails to notify the IMRF Board to suspend an annuitant's retirement benefits when the annuitant should no longer be eligible, the Board can review the circumstances and assign responsibility for reimbursing annuity payments between the employer and the annuitant. The bill establishes that the total amount repaid by the annuitant and the employer cannot exceed the total annuity payments made after the date the annuity should have been suspended. Importantly, the bill removes a previous provision that exempted short-term returns to work (less than 12 months) from these rules. The legislation also requires the IMRF to develop a system to track annuitants who return to work and notify both employers and annuitants about limitations on working while receiving retirement benefits. The bill aims to prevent improper continuation of retirement annuities and ensure appropriate reporting and reimbursement when an retiree returns to work in a qualifying position.

Committee Categories

Labor and Employment

Sponsors (1)

Last Action

Rule 3-9(a) / Re-referred to Assignments (on 03/21/2025)

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