Illinois General Assembly - Full Text of SB2775
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Full Text of SB2775  103rd General Assembly



State of Illinois
2023 and 2024


Introduced 1/17/2024, by Sen. Steve Stadelman


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

    Amends the Illinois Municipal Retirement Fund (IMRF) Article of the Illinois Pension Code. In a provision concerning suspensions of retirement annuities during employment with a participating employer, provides that until June 3, 2026, an annuitant shall not be considered a participating employee if the annuitant is employed as a school bus driver by a participating school district and works fewer than 750 hours annually. Effective immediately.

LRB103 36484 RPS 66588 b





SB2775LRB103 36484 RPS 66588 b

1    AN ACT concerning public employee benefits.
2    Be it enacted by the People of the State of Illinois,
3represented in the General Assembly:
4    Section 5. The Illinois Pension Code is amended by
5changing 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
9    (a) If any person receiving any annuity again becomes an
10employee and receives earnings from employment in a position
11requiring him, or entitling him to elect, to become a
12participating employee, then the annuity payable to such
13employee shall be suspended as of the first day of the month
14coincidental with or next following the date upon which such
15person becomes such an employee, unless the person is
16authorized under subsection (b) of Section 7-137.1 of this
17Code to continue receiving a retirement annuity during that
18period. Upon proper qualification of the participating
19employee payment of such annuity may be resumed on the first
20day of the month following such qualification and upon proper
21application therefor. The participating employee in such case
22shall be entitled to a supplemental annuity arising from
23service and credits earned subsequent to such re-entry as a



SB2775- 2 -LRB103 36484 RPS 66588 b

1participating employee.
2    Notwithstanding any other provision of this Article, an
3annuitant shall be considered a participating employee if he
4or she returns to work as an employee with a participating
5employer and works more than 599 hours annually (or 999 hours
6annually with a participating employer that has adopted a
7resolution pursuant to subsection (e) of Section 7-137 of this
8Code). Each of these annual periods shall commence on the
9month and day upon which the annuitant is first employed with
10the participating employer following the effective date of the
12    Notwithstanding any other provision of this Article, until
13June 3, 2026, an annuitant shall not be considered a
14participating employee if the annuitant is employed as a
15school bus driver by a participating school district and works
16fewer than 750 hours annually.
17    (a-5) If any annuitant under this Article must be
18considered a participating employee per the provisions of
19subsection (a) of this Section, and the participating
20municipality or participating instrumentality that employs or
21re-employs that annuitant knowingly fails to notify the Board
22to suspend the annuity, the participating municipality or
23participating instrumentality may be required to reimburse the
24Fund for an amount up to one-half of the total of any annuity
25payments made to the annuitant after the date the annuity
26should have been suspended, as determined by the Board. In no



SB2775- 3 -LRB103 36484 RPS 66588 b

1case shall the total amount repaid by the annuitant plus any
2amount reimbursed by the employer to the Fund be more than the
3total of all annuity payments made to the annuitant after the
4date the annuity should have been suspended. This subsection
5shall not apply if the annuitant returned to work for the
6employer for less than 12 months.
7    The Fund shall notify all annuitants that they must notify
8the Fund immediately if they return to work for any
9participating employer. The notification by the Fund shall
10occur upon retirement and no less than annually thereafter in
11a format determined by the Fund. The Fund shall also develop
12and maintain a system to track annuitants who have returned to
13work and notify the participating employer and annuitant at
14least annually of the limitations on returning to work under
15this Section.
16    (b) Supplemental annuities to persons who return to
17service for less than 48 months shall be computed under the
18provisions of Sections 7-141, 7-142, and 7-143. In determining
19whether an employee is eligible for an annuity which requires
20a minimum period of service, his entire period of service
21shall be taken into consideration but the supplemental annuity
22shall be based on earnings and service in the supplemental
23period only. The effective date of the suspended and
24supplemental annuity for the purpose of increases after
25retirement shall be considered to be the effective date of the
26suspended annuity.



SB2775- 4 -LRB103 36484 RPS 66588 b

1    (c) Supplemental annuities to persons who return to
2service for 48 months or more shall be a monthly amount
3determined 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



SB2775- 5 -LRB103 36484 RPS 66588 b

1participant under any other system or fund created by this
2Code and is employed on a full-time basis, except for those
3members or participants exempted from the provisions of
4subsection (a) of Section 1-160 of this Code (other than a
5participating employee under this Article), then the person's
6retirement annuity shall be suspended during that employment.
7Upon termination of that employment, the person's retirement
8annuity shall resume and be recalculated as required by this
10    (e) If a Tier 2 regular employee first began participation
11on or after January 1, 2012 and is receiving a retirement
12annuity and accepts on a contractual basis a position to
13provide services to a governmental entity from which he or she
14has retired, then that person's annuity or retirement pension
15shall be suspended during that contractual service,
16notwithstanding the provisions of any other Section in this
17Article. Such annuitant shall notify the Fund, as well as his
18or her contractual employer, of his or her retirement status
19before accepting contractual employment. A person who fails to
20submit such notification shall be guilty of a Class A
21misdemeanor and required to pay a fine of $1,000. Upon
22termination of that contractual employment, the person's
23retirement annuity shall resume and be recalculated as
24required 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



SB2775- 6 -LRB103 36484 RPS 66588 b

1becoming law.