IL HB4572

Amends the Illinois Municipal Retirement Fund (IMRF) Article to allow the IMRF Board to assign proportionate reimbursement responsibility between employers and annuitants when retirement applications must be retroactively denied due to lack of proper separation from service.

Requires participating municipalities or instrumentalities that knowingly fail to notify the Board when an annuitant returns to work to share responsibility for repaying erroneously paid annuity benefits.

Removes the existing exemption that excluded employers from reimbursement liability when annuitants returned to work for less than 12 months.

Caps total repayment so that combined amounts repaid by the annuitant and reimbursed by the employer cannot exceed the total annuity payments made in error.

Amends the State Mandates Act to require local implementation without state reimbursement.