IL HB3975

Amends the Unemployment Insurance Act to exclude primary Social Security old age and disability retirement benefits from "disqualifying income" calculations.

Adds new paragraph 2.1 clarifying that because individuals contribute to Social Security benefits, none of the amount received (including self-employment-based benefits) shall count as disqualifying income.

Removes language from paragraph 2 that previously included primary Social Security benefits as part of retirement payments subject to half-rate income reduction.

Maintains existing provisions regarding other pension and retirement payments from employers, which continue to count as disqualifying income at full or half rates depending on employer contribution levels.

Preserves requirement that the Director ensure administration complies with federal unemployment tax law requirements.