Return to Work – Employer Restrictions
Employer Restrictions for Affected Employees Returning to Work
Background of Public Act 97-0968
Public Act 97-0968 provides that a SURS-covered employer is to make a contribution to SURS if it employs an “affected annuitant” on or after Aug. 1, 2013. The contribution will be equal to the affected annuitant’s annualized retirement annuity payable on the day in which the employer has employed the affected annuitant.
Once an affected annuitant, the annuitant remains an affected annuitant unless he or she suspends the pension and returns to active service. Upon resuming retirement, the annuitant returns to affected annuitant status.
Public Act 97-0968 does not apply to the Retirement Savings Plan or to Portable Lump Sum Retirement recipients.
Explanation of Affected Annuitant
An employed annuitant would become an affected annuitant on the first day of an academic year following the academic year in which the annuitant initially meets the following conditions:
- Receives compensation during an academic year beginning after Aug. 1, 2013, that is greater than 40 percent of the highest annual rate of earnings earned prior to retirement, and
- Receives an annuity of at least $833.33 per month ($10,000 per year) in the academic year containing June 1, 2015, and any academic year thereafter.
Compensation received solely from federal, foundation, trust, or corporate funds, or state grants in which the principal investigator is named, does not apply toward affected annuitant status.
This legislation operates independently of the SURS return-to-work restrictions under 40 ILCS 5/15-139 and only applies to a SURS-covered employer that employs a SURS annuitant.
There is no additional contribution requirement or employment limitation for an annuitant who becomes an affected annuitant.
It is the employer’s responsibility to provide to SURS the following information within 60 days of the annuitant’s re-employment:
- A copy of the annuitant’s employment contract, or if no contract exists, the anticipated length of employment and rate of pay;
- If the annuitant will be paid from federal, foundation, trust, or corporate funds, or state grants in which the principal investigator is named; and
- The employer’s determination as to whether the annuitant is already an affected annuitant.
If a SURS-covered employer employs an affected annuitant, the employer must make a contribution to SURS equal to the affected annuitant’s annualized retirement annuity payable on the day in which the employer has employed the affected annuitant, i.e., the monthly annuity payable for the first month of employment is multiplied by twelve.
Requesting Information from SURS
If you require information regarding your prior SURS-covered employment history, you may request this information from SURS:
- Dial Toll Free: 800-275-7877
- Dial Direct: 217-378-88
- Fax: 217-378-9800
- Mail: 1901 Fox Drive, Champaign, IL 61820
If you need additional information, visit the SURS Member Website to obtain your Highest Annual Earnings and earnings limitation.
Upon your request, SURS will certify to you the following information as reported by your employers, as that information is indicated in SURS records:
- Highest annual earnings prior to retirement
- Number of paid weeks worked by you (as an annuitant) for an employer on or after August 1, 2013
- Compensation paid for that employment in each academic year
- Whether any of this employment or compensation has been certified to SURS as being paid from federal, corporate, foundation, or trust funds or grants of state funds that identify the principal investigator by name.
Frequently Asked Questions
- What is the amount the employer must pay SURS for hiring an affected annuitant?The employer must make a contribution to SURS equal to the affected annuitant’s annualized retirement annuity payable on the day in which the employer has employed the affected annuitant, i.e., the monthly annuity payable for the first month of employment is multiplied by twelve.
- Will SURS send notification to my employer if I stop/suspend my monthly retirement annuity?SURS will send notification to your employer upon request.