HB5174 Summary

• Amends the Illinois Pension Code Section 7-144 to govern retirement annuity suspension when annuitants return to work as participating employees.

• An annuitant receiving an annuity under Section 7-142.1 (school security guard provisions) is considered a participating employee if they return to work as a school security guard and work more than 999 hours annually.

• Employers who knowingly fail to notify the Board to suspend an annuity may be required to reimburse the Fund up to one-half of overpaid annuity benefits, with total repayment not exceeding the total overpaid amount.

• The Fund must notify all annuitants upon retirement and annually thereafter that they must immediately report if they return to work for any participating employer, and must maintain a system to track annuitants who have returned to work.

• Tier 2 employees who first participated after January 1, 2012 accepting contractual positions with their former employer must notify the Fund and employer of their retirement status or face a Class A misdemeanor charge and $1,000 fine.