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Illinois General Assembly· HB 79Governor Approved

PEN CD-IMRF-RETURN TO SERVICE, the official text

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HB0079 Enrolled                      LRB104 03202 RPS 13223 b

1  AN ACT concerning public employee benefits.

2  Be it enacted by the People of the State of Illinois,

3 represented in the General Assembly:

4  Section 5. The Illinois Pension Code is amended by

5 changing Section 7-144 as follows:

6  (40 ILCS 5/7-144) (from Ch. 108 1/2, par. 7-144)

7  Sec. 7-144. Retirement annuities; suspended during

8 employment.

9  (a) If any person receiving any annuity again becomes an

10 employee and receives earnings from employment in a position

11 requiring him, or entitling him to elect, to become a

12 participating employee, then the annuity payable to such

13 employee shall be suspended as of the first day of the month

14 coincidental with or next following the date upon which such

15 person becomes such an employee, unless the person is

16 authorized under subsection (b) of Section 7-137.1 of this

17 Code to continue receiving a retirement annuity during that

18 period. Upon proper qualification of the participating

19 employee payment of such annuity may be resumed on the first

20 day of the month following such qualification and upon proper

21 application therefor. The participating employee in such case

22 shall be entitled to a supplemental annuity arising from

23 service and credits earned subsequent to such re-entry as a
    HB0079 Enrolled        -2-  LRB104 03202 RPS 13223 b

1 participating employee.

2   Notwithstanding any other provision of this Article, an

3 annuitant shall be considered a participating employee if he

4 or she returns to work as an employee with a participating

5 employer and works more than 599 hours annually (or 999 hours

6 annually with a participating employer that has adopted a

7 resolution pursuant to subsection (e) of Section 7-137 of this

8 Code). Each of these annual periods shall commence on the

9 month and day upon which the annuitant is first employed with

10 the participating employer following the effective date of the

11 annuity.

12  Notwithstanding any other provision of this Article, an

13 annuitant receiving an annuity under Section 7-142.1 shall be

14 considered a participating employee if the annuitant returns

15 to work as a school security guard employed by a participating

16 employer and works more than 999 hours annually.

17  (a-5) If any annuitant under this Article must be

18 considered a participating employee per the provisions of

19 subsection (a) of this Section, and the participating

20 municipality or participating instrumentality that employs or

21 re-employs that annuitant knowingly fails to notify the Board

22 to suspend the annuity, the participating municipality or

23 participating instrumentality may be required to reimburse the

24 Fund for an amount up to one-half of the total of any annuity

25 payments made to the annuitant after the date the annuity

26 should have been suspended, as determined by the Board. In no
    HB0079 Enrolled    -3-           LRB104 03202 RPS 13223 b

1 case shall the total amount repaid by the annuitant plus any

2 amount reimbursed by the employer to the Fund be more than the

3 total of all annuity payments made to the annuitant after the

4 date the annuity should have been suspended. This subsection

5 shall not apply if the annuitant returned to work for the

6 employer for less than 12 months.

7   The Fund shall notify all annuitants that they must notify

8 the Fund immediately if they return to work for any

9 participating employer. The notification by the Fund shall

10 occur upon retirement and no less than annually thereafter in

11 a format determined by the Fund. The Fund shall also develop

12 and maintain a system to track annuitants who have returned to

13 work and notify the participating employer and annuitant at

14 least annually of the limitations on returning to work under

15 this Section.

16  (b) Supplemental annuities to persons who return to

17 service for less than 48 months shall be computed under the

18 provisions of Sections 7-141, 7-142, and 7-143. In determining

19 whether an employee is eligible for an annuity which requires

20 a minimum period of service, his entire period of service

21 shall be taken into consideration but the supplemental annuity

22 shall be based on earnings and service in the supplemental

23 period only. The effective date of the suspended and

24 supplemental annuity for the purpose of increases after

25 retirement shall be considered to be the effective date of the

26 suspended annuity.
    HB0079 Enrolled       -4-  LRB104 03202 RPS 13223 b

1   (c) Supplemental annuities to persons who return to

2 service for 48 months or more shall be a monthly amount

3 determined as follows:

4   (1) An amount shall be computed under subparagraph b

5   of paragraph (1) of subsection (a) of Section 7-142,

6   considering all of the service credits of the employee.

7   (2) The actuarial value in monthly payments for life

8   of the annuity payments made before suspension shall be

9   determined and subtracted from the amount determined in

10  paragraph (1) above.

11  (3) The monthly amount of the suspended annuity, with

12  any applicable increases after retirement computed from

13  the effective date to the date of reinstatement, shall be

14  subtracted from the amount determined in paragraph (2)

15  above and the remainder shall be the amount of the

16  supplemental annuity provided that this amount shall not

17  be less than the amount computed under subsection (b) of

18  this Section.

19  (4) The suspended annuity shall be reinstated at an

20  amount including any increases after retirement from the

21  effective date to date of reinstatement.

22  (5) The effective date of the combined suspended and

23  supplemental annuities for the purposes of increases after

24  retirement shall be considered to be the effective date of

25  the supplemental annuity.

26  (d) If a Tier 2 regular employee becomes a member or
    HB0079 Enrolled           -5-  LRB104 03202 RPS 13223 b

1 participant under any other system or fund created by this

2 Code and is employed on a full-time basis, except for those

3 members or participants exempted from the provisions of

4 subsection (a) of Section 1-160 of this Code (other than a

5 participating employee under this Article), then the person's

6 retirement annuity shall be suspended during that employment.

7 Upon termination of that employment, the person's retirement

8 annuity shall resume and be recalculated as required by this

9 Section.

10  (e) If a Tier 2 regular employee first began participation

11 on or after January 1, 2012 and is receiving a retirement

12 annuity and accepts on a contractual basis a position to

13 provide services to a governmental entity from which he or she

14 has retired, then that person's annuity or retirement pension

15 shall be suspended during that contractual service,

16 notwithstanding the provisions of any other Section in this

17 Article. Such annuitant shall notify the Fund, as well as his

18 or her contractual employer, of his or her retirement status

19 before accepting contractual employment. A person who fails to

20 submit such notification shall be guilty of a Class A

21 misdemeanor and required to pay a fine of $1,000. Upon

22 termination of that contractual employment, the person's

23 retirement annuity shall resume and be recalculated as

24 required by this Section.

25 (Source: P.A. 102-210, eff. 1-1-22; 103-154, eff. 6-30-23.)

26  Section 99. Effective date. This Act takes effect upon
         HB0079 Enrolled  -6-  LRB104 03202 RPS 13223 b
1 becoming law.
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