IL SB1267

Amends the Illinois Municipal Retirement Fund (IMRF) provisions to allow the IMRF Board to assign proportionate responsibility between employers and annuitants for reimbursing improperly paid annuity benefits when an annuitant returns to work without proper separation from service

Requires participating municipalities or instrumentalities that knowingly fail to notify the Board to suspend an annuitant's payments to share in reimbursement costs, with the Board reviewing the totality of circumstances to determine proportionate responsibility

Removes the existing exception that previously exempted employers from reimbursement responsibility if the annuitant returned to work for less than 12 months

Caps total repayment amounts so that the combined amount repaid by the annuitant and reimbursed by the employer cannot exceed the total annuity payments made after the date the annuity should have been suspended

Amends the State Mandates Act to require local governments to implement these changes without state reimbursement