Sen. Daniel Biss
Filed: 3/15/2013
 
 


 




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1
AMENDMENT TO SENATE BILL 1687 




2 AMENDMENT NO. ______. Amend Senate Bill 1687 by replacing 
3everything after the enacting clause with the following:


4 "Section 5. The Illinois Pension Code is amended by 
5changing Sections 15-126.1, 15-139, 15-139.5, and 15-168.2 as 
6follows:




7 (40 ILCS 5/15-126.1) (from Ch. 108 1/2, par. 15-126.1)



8 Sec. 15-126.1. Academic year. "Academic year": The 
912-month period
beginning on the first day of the fall term as 
10determined
by each employer, or if the employer does not have 
11an academic program
divided into terms, then beginning 
12September 1. For the purposes of Section 15-139.5 and 
13subsection (b) of Section 15-139, however, "academic year" 
14means the 12-month period beginning September 1.

15(Source: P.A. 84-1472.)





 
 
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1 (40 ILCS 5/15-139) (from Ch. 108 1/2, par. 15-139)



2 Sec. 15-139. Retirement annuities; cancellation; suspended 
3during
employment.
4 (a) If an annuitant returns to employment for an employer

5within 60 days after the beginning of the retirement annuity 
6payment
period, the retirement annuity shall be cancelled, and 
7the annuitant shall
refund to the System the total amount of 
8the retirement annuity payments
which he or she received. If 
9the retirement annuity is cancelled, the
participant shall 
10continue to participate in the System.

11 (b) If an annuitant retires prior to age 60 and receives or 
12becomes
entitled to receive during any month compensation in 
13excess of the monthly
retirement annuity (including any 
14automatic annual increases) for services
performed after the 
15date of retirement for any employer under this System, that

16portion of the monthly
retirement annuity provided by employer 
17contributions shall not be payable.

18 If an annuitant retires at age 60 or over and receives
or 
19becomes entitled to receive during any academic year 
20compensation in
excess of the difference between his or her 
21highest annual earnings prior
to retirement and his or her 
22annual retirement annuity computed under Rule
1, Rule 2, Rule 
233, Rule 4, or Rule 5 of Section 15-136, or under Section

2415-136.4,
for services performed after
the date of retirement 
25for any employer under this System, that portion of
the monthly 
26retirement annuity provided by employer contributions shall be

 
 
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1reduced by an amount equal to the compensation that exceeds 
2such difference.

3 However, any remuneration received for serving as a member 
4of the
Illinois Educational Labor Relations Board shall be 
5excluded from
"compensation" for the purposes of this 
6subsection (b), and serving as a
member of the Illinois 
7Educational Labor Relations Board shall not be
deemed to be a 
8return to employment for the purposes of this Section.
This 
9provision applies without regard to whether service was 
10terminated
prior to the effective date of this amendatory Act 
11of 1991. 
12 "Academic year", as used in this subsection (b), means the 
1312-month period beginning September 1.

14 (c) If an employer certifies that an annuitant has been 
15reemployed
on a permanent and continuous basis or in a position

16in which the annuitant is expected to serve for at least 9 
17months, the
annuitant shall resume his or her status as a 
18participating employee
and shall be entitled to all rights 
19applicable to
participating employees upon filing with the 
20board an
election to forgo all annuity payments during the 
21period
of reemployment. Upon subsequent retirement, the 
22retirement
annuity shall consist of the annuity which was 
23terminated by the reemployment,
plus the additional retirement 
24annuity based upon service
granted during the period of 
25reemployment, but the combined retirement
annuity shall not 
26exceed the maximum
annuity applicable on the date of the last 
 
 
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1retirement.

2 The total service and earnings credited before and after 
3the initial
date of retirement shall be considered in 
4determining eligibility of the
employee or the employee's 
5beneficiary to benefits under this
Article, and in calculating 
6final rate of earnings.

7 In determining the death benefit
payable to a beneficiary 
8of an annuitant who again becomes a participating
employee 
9under this Section, accumulated normal and additional

10contributions shall be considered as the sum of the accumulated 
11normal and
additional contributions at the date of initial 
12retirement and the
accumulated normal and additional 
13contributions credited after that date,
less the sum of the 
14annuity payments received by the annuitant.

15 The survivors insurance benefits provided under Section 
1615-145 shall not
be applicable to an annuitant who resumes his 
17or her status as a
participating employee, unless the 
18annuitant, at the time of initial
retirement, has a survivors 
19insurance beneficiary who could qualify
for such benefits.

20 If the participant's employment is terminated because of 
21circumstances
other than death before 9 months from the date of 
22reemployment, the
provisions of this Section regarding 
23resumption of status as a
participating employee shall not 
24apply. The normal and survivors insurance
contributions which 
25are deducted during this period shall be refunded to
the 
26annuitant without interest, and subsequent benefits under this 
 
 
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1Article
shall be the same as those which were applicable prior 
2to the date the
annuitant resumed employment.

3 The amendments made to this Section by this amendatory Act 
4of the 91st
General Assembly apply without regard to whether 
5the annuitant was in service
on or after the effective date of 
6this amendatory Act.

7(Source: P.A. 97-933, eff. 8-10-12; 97-968, eff. 8-16-12.)


8 (40 ILCS 5/15-139.5)
9 Sec. 15-139.5. Return to work by affected annuitant; notice 
10and contribution by employer.
11 (a) An employer who employs or re-employs a person 
12receiving a retirement annuity from the System in an academic 
13year beginning on or after August 1, 2014 2013 must notify the 
14System of that employment within 60 days after employing the 
15annuitant. The notice must include a summary copy of the 
16contract of employment or ; if no written contract of employment 
17exists, then the notice must specify the rate of compensation 
18and the anticipated length of employment of that annuitant. The 
19notice must specify whether the annuitant will be compensated 
20from federal, corporate, foundation, or trust funds or grants 
21of State funds that identify the principal investigator by 
22name. The notice must include the employer's determination of 
23whether or not the annuitant is an "affected annuitant" as 
24defined in subsection (b).
25 The employer must also record, document, and certify to the 
 
 
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1System (i) the number of paid days and paid weeks worked by the 
2annuitant in the academic year, (ii) the amount of compensation 
3paid to the annuitant for employment during the academic year, 
4and (ii) (iii) the amount of that compensation, if any, that 
5comes from either federal, corporate, foundation, or trust 
6funds or grants of State funds that identify the principal 
7investigator by name.
8 As used in this Section, "academic year" means the 12-month 
9period beginning September 1. has the meaning ascribed to that 
10term in Section 15-126.1; "paid day" means a day on which a 
11person performs personal services for an employer and for which 
12the person is compensated by the employer; and "paid week" 
13means a calendar week in which a person has at least one paid 
14day. 
15 For the purposes of this Section, an annuitant whose 
16employment by an employer extends over more than one academic 
17year shall be deemed to be re-employed by that employer in each 
18of those academic years. 
19 The System may specify the time, form, and manner of 
20providing the determinations, notifications, certifications, 
21and documentation required under this Section. 
22 (b) A person receiving a retirement annuity from the System 
23becomes an "affected annuitant" on the first day of the 
24academic year following the academic year in which the 
25annuitant first meets both of the following condition 
26conditions:
 
 
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1  (1) (Blank). While receiving a retirement annuity 
2 under this Article, the annuitant has been employed on or 
3 after August 1, 2013 by one or more employers under this 
4 Article for a total of more than 18 paid weeks (which need 
5 not have been with the same employer or in the same 
6 academic year); except that any periods of employment for 
7 which the annuitant was compensated solely from federal, 
8 corporate, foundation, or trust funds or grants of State 
9 funds that identify the principal investigator by name are 
10 excluded. 
11  (2) While receiving a retirement annuity under this 
12 Article, the annuitant was employed on or after August 1, 
13 2014 2013 by one or more employers under this Article and 
14 received
or became entitled to receive during an academic 
15 year compensation for that employment in excess of 40% of 
16 his or her highest annual earnings prior
to retirement; 
17 except that compensation paid from federal, corporate, 
18 foundation, or trust funds or grants of State funds that 
19 identify the principal investigator by name is excluded.
20 A person who becomes an affected annuitant remains an 
21affected annuitant, except for any period during which the 
22person returns to active service and does not receive a 
23retirement annuity from the System. 
24 (c) It is the obligation of the employer to determine 
25whether an annuitant is an affected annuitant before employing 
26the annuitant. For that purpose the employer may require the 
 
 
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1annuitant to disclose and document his or her relevant prior 
2employment and earnings history. Failure of the employer to 
3make this determination correctly and in a timely manner or to 
4include this determination with the notification required 
5under subsection (a) does not excuse the employer from making 
6the contribution required under subsection (e).
7 The System may assist the employer in determining whether a 
8person is an affected annuitant. The System shall inform the 
9employer if it discovers that the employer's determination is 
10inconsistent with the employment and earnings information in 
11the System's records. 
12 (d) Upon the request of an annuitant, the System shall 
13certify to the annuitant or the employer the following 
14information as reported by the employers, as that information 
15is indicated in the records of the System: (i) the annuitant's 
16highest annual earnings prior
to retirement, (ii) the number of 
17paid weeks worked by the annuitant for an employer on or after 
18August 1, 2013, (iii) the compensation paid for that employment 
19in each academic year, and (iii) (iv) whether any of that 
20employment or compensation has been certified to the System as 
21being paid from federal, corporate, foundation, or trust funds 
22or grants of State funds that identify the principal 
23investigator by name. The System shall only be required to 
24certify information that is received from the employers. 
25 (e) In addition to the requirements of subsection (a), an 
26employer who employs an affected annuitant must pay to the 
 
 
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1System an employer contribution in the amount and manner 
2provided in this Section, unless the annuitant is compensated 
3by that employer solely from federal, corporate, foundation, or 
4trust funds or grants of State funds that identify the 
5principal investigator by name.
6 The employer contribution required under this Section for 
7employment of an affected annuitant in an academic year shall 
8be equal to 12 times the amount of the gross monthly retirement 
9annuity payable to the annuitant for the month in which the 
10first paid day of that employment in that academic year occurs, 
11after any reduction in that annuity that may be imposed under 
12subsection (b) of Section 15-139.
13 If an affected annuitant is employed by more than one 
14employer in an academic year, the employer contribution 
15required under this Section shall be divided among those 
16employers in proportion to their respective portions of the 
17total compensation paid to the affected annuitant for that 
18employment during that academic year. 
19 If the System determines that an employer, without 
20reasonable justification, has failed to make the determination 
21of affected annuitant status correctly and in a timely manner, 
22or has failed to notify the System or to correctly document or 
23certify to the System any of the information required by this 
24Section, and that failure results in a delayed determination by 
25the System that a contribution is payable under this Section, 
26then the amount of that employer's contribution otherwise 
 
 
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1determined under this Section shall be doubled. 
2 The System shall deem a failure to correctly determine the 
3annuitant's status to be justified if the employer establishes 
4to the System's satisfaction that the employer, after due 
5diligence, made an erroneous determination that the annuitant 
6was not an affected annuitant due to reasonable reliance on 
7false or misleading information provided by the annuitant or 
8another employer, or an error in the annuitant's official 
9employment or earnings records. 
10 (f) Whenever the System determines that an employer is 
11liable for a contribution under this Section, it shall so 
12notify the employer and certify the amount of the contribution. 
13The employer may pay the required contribution without interest 
14at any time within one year after receipt of the certification. 
15If the employer fails to pay within that year, then interest 
16shall be charged at a rate equal to the System's prescribed 
17rate of interest, compounded annually from the 366th day after 
18receipt of the certification from the System. Payment must be 
19concluded within 2 years after receipt of the certification by 
20the employer. If the employer fails to make complete payment, 
21including applicable interest, within 2 years, then the System 
22may, after giving notice to the employer, certify the 
23delinquent amount to the State Comptroller, and the Comptroller 
24shall thereupon deduct the certified delinquent amount from 
25State funds payable to the employer and pay them instead to the 
26System. 
 
 
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1 (g) If an employer is required to make a contribution to 
2the System as a result of employing an affected annuitant and 
3the annuitant later elects to forgo his or her annuity in that 
4same academic year pursuant to subsection (c) of Section 
515-139, then the required contribution by the employer shall be 
6waived, and if the contribution has already been paid, it shall 
7be refunded to the employer without interest. 
8 (h) Notwithstanding any other provision of this Article, 
9the employer contribution required under this Section shall not 
10be included in the determination of any benefit under this 
11Article or any other Article of this Code, regardless of 
12whether the annuitant returns to active service, and is in 
13addition to any other State or employer contribution required 
14under this Article. 
15 (i) Notwithstanding any other provision of this Section to 
16the contrary, if an employer employs an affected annuitant in 
17order to continue critical operations in the event of either an 
18employee's unforeseen illness, accident, or death or a 
19catastrophic incident or disaster, then, for one and only one 
20academic year, the employer is not required to pay the 
21contribution set forth in this Section for that annuitant. The 
22employer shall, however, immediately notify the System upon 
23employing a person subject to this subsection (i). For the 
24purposes of this subsection (i), "critical operations" means 
25teaching services, medical services, student welfare services, 
26and any other services that are critical to the mission of the 
 
 
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1employer. 

2 (j) This Section shall be applied and coordinated with the 
3regulatory obligations contained in the State Universities 
4Civil Service Act. This Section shall not apply to an annuitant 
5if the employer of that annuitant provides documentation to the 
6System that (1) the annuitant is employed in a status 
7appointment position, as that term is defined in 80 Ill. Adm. 
8Code 250.80, and (2) due to obligations contained under the 
9State Universities Civil Service Act, the employer does not 
10have the ability to limit the earnings or duration of 
11employment for the annuitant while employed in the status 
12appointment position. 
13(Source: P.A. 97-968, eff. 8-16-12.)

14 (40 ILCS 5/15-168.2)
15 Sec. 15-168.2. Audit of employers. Beginning August 1, 2014 
162013, the System may audit the employment records and payroll 
17records of all employers. When the System audits an employer, 
18it shall specify the exact information it requires, which may 
19include but need not be limited to the names, titles, and 
20earnings history of every individual receiving compensation 
21from the employer. If an employer is audited by the System, 
22then the employer must provide to the System all necessary 
23documents and records within 60 calendar days after receiving 
24notification from the System. When the System audits an 
25employer, it shall send related correspondence by certified 
 
 
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1mail.

2(Source: P.A. 97-968, eff. 8-16-12.)


3 Section 99. Effective date. This Act takes effect upon 
4becoming law.".