Illinois 2025-2026 Regular Session

Illinois Senate Bill SB1374 Compare Versions

Only one version of the bill is available at this time.

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1	1	104TH GENERAL ASSEMBLY State of Illinois 2025 and 2026 SB1374 Introduced 1/29/2025, by Sen. Chapin Rose SYNOPSIS AS INTRODUCED: 40 ILCS 5/15-139.5 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. LRB104 09777 RPS 19843 b A BILL FOR 104TH GENERAL ASSEMBLY State of Illinois 2025 and 2026 SB1374 Introduced 1/29/2025, by Sen. Chapin Rose SYNOPSIS AS INTRODUCED: 40 ILCS 5/15-139.5 40 ILCS 5/15-139.5 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. LRB104 09777 RPS 19843 b LRB104 09777 RPS 19843 b A BILL FOR
2	2	104TH GENERAL ASSEMBLY State of Illinois 2025 and 2026 SB1374 Introduced 1/29/2025, by Sen. Chapin Rose SYNOPSIS AS INTRODUCED:
3	3	40 ILCS 5/15-139.5 40 ILCS 5/15-139.5
4	4	40 ILCS 5/15-139.5
5	5	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.
6	6	LRB104 09777 RPS 19843 b LRB104 09777 RPS 19843 b
7	7	LRB104 09777 RPS 19843 b
8	8	A BILL FOR
9	9	SB1374LRB104 09777 RPS 19843 b SB1374 LRB104 09777 RPS 19843 b
10	10	SB1374 LRB104 09777 RPS 19843 b
11	11	1 AN ACT concerning public employee benefits.
12	12	2 Be it enacted by the People of the State of Illinois,
13	13	3 represented in the General Assembly:
14	14	4 Section 5. The Illinois Pension Code is amended by
15	15	5 changing Section 15-139.5 as follows:
16	16	6 (40 ILCS 5/15-139.5)
17	17	7 Sec. 15-139.5. Return to work by affected annuitant;
18	18	8 notice and contribution by employer.
19	19	9 (a) An employer who employs or re-employs a person
20	20	10 receiving a retirement annuity from the System in an academic
21	21	11 year beginning on or after August 1, 2013 must notify the
22	22	12 System of that employment within 60 days after employing the
23	23	13 annuitant. The notice must include a summary of the contract
24	24	14 of employment or specify the rate of compensation and the
25	25	15 anticipated length of employment of that annuitant. The notice
26	26	16 must specify whether the annuitant will be compensated from
27	27	17 federal, corporate, foundation, or trust funds or grants of
28	28	18 State funds that identify the principal investigator by name.
29	29	19 The notice must include the employer's determination of
30	30	20 whether or not the annuitant is an "affected annuitant" as
31	31	21 defined in subsection (b).
32	32	22 The employer must also record, document, and certify to
33	33	23 the System (i) the amount of compensation paid to the
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37	37	104TH GENERAL ASSEMBLY State of Illinois 2025 and 2026 SB1374 Introduced 1/29/2025, by Sen. Chapin Rose SYNOPSIS AS INTRODUCED:
38	38	40 ILCS 5/15-139.5 40 ILCS 5/15-139.5
39	39	40 ILCS 5/15-139.5
40	40	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.
41	41	LRB104 09777 RPS 19843 b LRB104 09777 RPS 19843 b
42	42	LRB104 09777 RPS 19843 b
43	43	A BILL FOR
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68	68	1 annuitant for employment during the academic year, and (ii)
69	69	2 the amount of that compensation, if any, that comes from
70	70	3 either federal, corporate, foundation, or trust funds or
71	71	4 grants of State funds that identify the principal investigator
72	72	5 by name.
73	73	6 As used in this Section, "academic year" means the
74	74	7 12-month period beginning September 1.
75	75	8 For the purposes of this Section, an annuitant whose
76	76	9 employment by an employer extends over more than one academic
77	77	10 year shall be deemed to be re-employed by that employer in each
78	78	11 of those academic years.
79	79	12 The System may specify the time, form, and manner of
80	80	13 providing the determinations, notifications, certifications,
81	81	14 and documentation required under this Section.
82	82	15 (b) A person receiving a retirement annuity from the
83	83	16 System becomes an "affected annuitant" on the first day of the
84	84	17 academic year following the academic year in which the
85	85	18 annuitant first meets the following conditions:
86	86	19 (1) (Blank).
87	87	20 (2) While receiving a retirement annuity under this
88	88	21 Article, the annuitant was employed on or after August 1,
89	89	22 2013 by one or more employers under this Article and
90	90	23 received or became entitled to receive during an academic
91	91	24 year compensation for that employment in excess of 40% of
92	92	25 his or her highest annual earnings prior to retirement;
93	93	26 except that compensation paid from federal, corporate,
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104	104	1 foundation, or trust funds or grants of State funds that
105	105	2 identify the principal investigator by name is excluded.
106	106	3 (3) The annuitant received an annualized retirement
107	107	4 annuity under this Article of at least $10,000.
108	108	5 A person who becomes an affected annuitant remains an
109	109	6 affected annuitant, except for (i) any period during which the
110	110	7 person returns to active service and does not receive a
111	111	8 retirement annuity from the System; or (ii) any period on or
112	112	9 after the effective date of this amendatory Act of the 100th
113	113	10 General Assembly during which an annuitant received an
114	114	11 annualized retirement annuity under this Article that is less
115	115	12 than $10,000; or (iii) any period during which the annuitant
116	116	13 received, or became entitled to receive, during an academic
117	117	14 year compensation for that employment equal to 40% or less of
118	118	15 his or her highest annual earnings prior to retirement.
119	119	16 (c) It is the obligation of the employer to determine
120	120	17 whether an annuitant is an affected annuitant before employing
121	121	18 the annuitant. For that purpose the employer may require the
122	122	19 annuitant to disclose and document his or her relevant prior
123	123	20 employment and earnings history. Failure of the employer to
124	124	21 make this determination correctly and in a timely manner or to
125	125	22 include this determination with the notification required
126	126	23 under subsection (a) does not excuse the employer from making
127	127	24 the contribution required under subsection (e).
128	128	25 The System may assist the employer in determining whether
129	129	26 a person is an affected annuitant. The System shall inform the
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140	140	1 employer if it discovers that the employer's determination is
141	141	2 inconsistent with the employment and earnings information in
142	142	3 the System's records.
143	143	4 (d) Upon the request of an annuitant, the System shall
144	144	5 certify to the annuitant or the employer the following
145	145	6 information as reported by the employers, as that information
146	146	7 is indicated in the records of the System: (i) the annuitant's
147	147	8 highest annual earnings prior to retirement, (ii) the
148	148	9 compensation paid for that employment in each academic year,
149	149	10 and (iii) whether any of that employment or compensation has
150	150	11 been certified to the System as being paid from federal,
151	151	12 corporate, foundation, or trust funds or grants of State funds
152	152	13 that identify the principal investigator by name. The System
153	153	14 shall only be required to certify information that is received
154	154	15 from the employers.
155	155	16 (e) In addition to the requirements of subsection (a), an
156	156	17 employer who employs an affected annuitant must pay to the
157	157	18 System an employer contribution in the amount and manner
158	158	19 provided in this Section, unless the annuitant is compensated
159	159	20 by that employer solely from federal, corporate, foundation,
160	160	21 or trust funds or grants of State funds that identify the
161	161	22 principal investigator by name.
162	162	23 The employer contribution required under this Section for
163	163	24 employment of an affected annuitant in an academic year shall
164	164	25 be equal to the lesser of: (1) 3 12 times the amount of the
165	165	26 gross monthly retirement annuity payable to the annuitant for
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176	176	1 the month in which the first paid day of that employment in
177	177	2 that academic year occurs, after any reduction in that annuity
178	178	3 that may be imposed under subsection (b) of Section 15-139; or
179	179	4 (2) $100,000.
180	180	5 If an affected annuitant is employed by more than one
181	181	6 employer in an academic year, the employer contribution
182	182	7 required under this Section shall be divided among those
183	183	8 employers in proportion to their respective portions of the
184	184	9 total compensation paid to the affected annuitant for that
185	185	10 employment during that academic year.
186	186	11 If the System determines that an employer, without
187	187	12 reasonable justification, has failed to make the determination
188	188	13 of affected annuitant status correctly and in a timely manner,
189	189	14 or has failed to notify the System or to correctly document or
190	190	15 certify to the System any of the information required by this
191	191	16 Section, and that failure results in a delayed determination
192	192	17 by the System that a contribution is payable under this
193	193	18 Section, then the amount of that employer's contribution
194	194	19 otherwise determined under this Section shall be doubled.
195	195	20 The System shall deem a failure to correctly determine the
196	196	21 annuitant's status to be justified if the employer establishes
197	197	22 to the System's satisfaction that the employer, after due
198	198	23 diligence, made an erroneous determination that the annuitant
199	199	24 was not an affected annuitant due to reasonable reliance on
200	200	25 false or misleading information provided by the annuitant or
201	201	26 another employer, or an error in the annuitant's official
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212	212	1 employment or earnings records.
213	213	2 The changes to this subsection (e) made by this amendatory
214	214	3 Act of the 104th General Assembly apply to employer
215	215	4 contributions required on or after January 1, 2021.
216	216	5 (f) Whenever the System determines that an employer is
217	217	6 liable for a contribution under this Section, it shall so
218	218	7 notify the employer and certify the amount of the
219	219	8 contribution. The employer may pay the required contribution
220	220	9 without interest at any time within one year after receipt of
221	221	10 the certification. If the employer fails to pay within that
222	222	11 year, then interest shall be charged at a rate equal to the
223	223	12 System's prescribed rate of interest, compounded annually from
224	224	13 the 366th day after receipt of the certification from the
225	225	14 System. Payment must be concluded within 2 years after receipt
226	226	15 of the certification by the employer. If the employer fails to
227	227	16 make complete payment, including applicable interest, within 2
228	228	17 years, then the System may, after giving notice to the
229	229	18 employer, certify the delinquent amount to the State
230	230	19 Comptroller, and the Comptroller shall thereupon deduct the
231	231	20 certified delinquent amount from State funds payable to the
232	232	21 employer and pay them instead to the System.
233	233	22 (g) If an employer is required to make a contribution to
234	234	23 the System as a result of employing an affected annuitant and
235	235	24 the annuitant later elects to forgo his or her annuity in that
236	236	25 same academic year pursuant to subsection (c) of Section
237	237	26 15-139, then the required contribution by the employer shall
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248	248	1 be waived, and if the contribution has already been paid, it
249	249	2 shall be refunded to the employer without interest.
250	250	3 (h) Notwithstanding any other provision of this Article,
251	251	4 the employer contribution required under this Section shall
252	252	5 not be included in the determination of any benefit under this
253	253	6 Article or any other Article of this Code, regardless of
254	254	7 whether the annuitant returns to active service, and is in
255	255	8 addition to any other State or employer contribution required
256	256	9 under this Article.
257	257	10 (i) Notwithstanding any other provision of this Section to
258	258	11 the contrary, if an employer employs an affected annuitant in
259	259	12 order to continue critical operations in the event of either
260	260	13 an employee's unforeseen illness, accident, or death or a
261	261	14 catastrophic incident or disaster, then, for one and only one
262	262	15 academic year, the employer is not required to pay the
263	263	16 contribution set forth in this Section for that annuitant. The
264	264	17 employer shall, however, immediately notify the System upon
265	265	18 employing a person subject to this subsection (i). For the
266	266	19 purposes of this subsection (i), "critical operations" means
267	267	20 teaching services, medical services, student welfare services,
268	268	21 and any other services that are critical to the mission of the
269	269	22 employer.
270	270	23 (j) This Section shall be applied and coordinated with the
271	271	24 regulatory obligations contained in the State Universities
272	272	25 Civil Service Act. This Section shall not apply to an
273	273	26 annuitant if the employer of that annuitant provides
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284	284	1 documentation to the System that (1) the annuitant is employed
285	285	2 in a status appointment position, as that term is defined in 80
286	286	3 Ill. Adm. Code 250.80, and (2) due to obligations contained
287	287	4 under the State Universities Civil Service Act, the employer
288	288	5 does not have the ability to limit the earnings or duration of
289	289	6 employment for the annuitant while employed in the status
290	290	7 appointment position.
291	291	8 (Source: P.A. 100-556, eff. 12-8-17.)
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