IL HB4588

Amends the Illinois Pension Code to define "gainful employment" for Downstate Teachers' Retirement System members receiving disability or occupational disability benefits as employment generating earned income exceeding $20,000 in a calendar year (or pro rata share if less than a full year).

Excludes contributions to tax-deferred retirement plan accounts authorized by the Internal Revenue Code from the earned income calculation.

Adjusts the $20,000 threshold annually on January 1 by the unadjusted percentage increase in the consumer price index-u for the prior 12 months (minimum zero increase), with adjustments compounding cumulatively.

Designates the Public Pension Division of the Department of Insurance to determine and announce the adjusted dollar amount by November 1 each year.

Takes effect immediately upon becoming law.