IL SB2887

Employers must notify the Teachers' Retirement System within 60 days when hiring or rehiring a person receiving a retirement annuity, including compensation details and funding sources.

An "affected annuitant" is defined as a retiree receiving at least $10,000 annually who earns more than 40% of their pre-retirement highest annual salary in an academic year (with certain grant and fund compensation excluded).

Employers must pay an annual contribution equal to 12 times the affected annuitant's gross monthly retirement annuity, unless compensation comes solely from federal, corporate, foundation, or trust funds with named principal investigators.

Employers can face doubled contributions if they fail to correctly determine affected annuitant status or properly notify and document the System, though good faith reliance on false information from the annuitant may excuse this penalty.

Employers have one year from certification to pay contributions without interest; unpaid amounts accrue interest and can be collected by the State Comptroller through offset of State funds after two years.