summary
Introduced
01/29/2025
01/29/2025
In Committee
01/29/2025
01/29/2025
Crossed Over
Passed
Dead
Introduced Session
104th General Assembly
Bill Summary
Amends the State Universities Article of the Illinois Pension Code. In a provision concerning additional employer contributions for employers that employ or re-employ affected annuitants, provides that the required employer contribution for employment of an affected annuitant in an academic year shall be equal to the lesser of: (1) 3 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 a specified provision; or (2) $100,000 (instead of 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 a specified provision). Provides that the changes to the required employer contribution made by the amendatory Act apply to employer contributions required on or after January 1, 2021. Provides that a person who becomes an affected annuitant remains an affected annuitant, except for any period during which the annuitant received, or became entitled to receive, during an academic year compensation for that employment equal to 40% or less of his or her highest annual earnings prior to retirement. Effective immediately.
AI Summary
This bill amends the Illinois Pension Code to modify the rules for state university retirees returning to work. Specifically, it changes the employer contribution requirements for "affected annuitants" - retired employees who return to work and earn more than 40% of their pre-retirement earnings in an academic year. The bill reduces the employer contribution from 12 times to 3 times the annuitant's monthly retirement annuity, with a new maximum cap of $100,000. The changes apply to employer contributions required on or after January 1, 2021. An important modification is that a person remains classified as an "affected annuitant" unless they earn 40% or less of their highest pre-retirement annual earnings during an academic year. The bill aims to provide more flexibility for universities rehiring retired employees while still maintaining financial disincentives for excessive post-retirement employment. Employers are required to notify the pension system about rehired retirees and determine their "affected annuitant" status, with potential penalties for incorrect or delayed reporting. The legislation maintains existing provisions about notification, documentation, and potential interest charges for non-compliance.
Sponsors (1)
Last Action
Referred to Assignments (on 01/29/2025)
bill text
bill summary
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bill summary
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bill summary
| Document Type | Source Location |
|---|---|
| State Bill Page | https://www.ilga.gov/legislation/BillStatus.asp?DocNum=1374&GAID=18&DocTypeID=SB&SessionID=114&GA=104 |
| BillText | https://www.ilga.gov/legislation/104/SB/10400SB1374.htm |
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