Board Resolution 2020-08-08(a)

WHEREAS, Section 7-198 of the Illinois Pension Code authorizes the Board of Trustees of the Illinois Municipal Retirement Fund (IMRF) to establish rules necessary or desirable for the efficient administration of the Fund; and

WHEREAS, Section 7-144 of the Pension Code requires suspension of annuity payments of an IMRF retiree who returns to work as an employee with a participating employer and works more than 599 hours annually (or 999 hours annually with a participating employer that has adopted a resolution pursuant to subsection (e) of Section 7-137 of the Pension Code); and

WHEREAS, Section 7-144 of the Pension Code requires an IMRF retiree who returns to work as an employee with a participating employer and works more than 599 or 999 hours (as applicable) to be re-enrolled as a participating employee; and

WHEREAS, the determination of the hours worked for an IMRF retiree who returns to work as an employee shall commence on the month and day upon which the annuitant is first employed with the participating employer following the effective date of the annuity; and

WHEREAS, it is necessary that the Board of Trustees adopt policies for purposes of efficiently administering the IMRF retiree return-to-work requirements of Section 7-144.

THEREFORE BE IT RESOLVED that the following policies shall apply to IMRF retirees who return to work with a participating employer:

1. Participation and enrollment of retirees
1. Retirees shall be considered to have returned to IMRF-qualifying employment only after working 600 or 1,000 (as applicable) within a twelve-month period. Only hours actually worked may be counted towards this amount. Hours paid but not worked, such as paid time off, vacation time, or sick time, are not counted.
2. When a retiree hits 600/1,000 hours, the retiree must be enrolled immediately in IMRF if the retiree continues employment with that participating employer, regardless of additional hours expected or reasons that 600/1,000 hours were reached.
3. The determination of 600/1,000 hours in a year will be counted from the first day of employment for the employer after the retiree becomes an annuitant. This date will remain fixed as to that employer, regardless of any subsequent terminations or rehirings.
4. If the retiree worked for that employer before it adopted the 1,000-hour standard, the retiree is under a 600-hour standard for that employer.
5. When the retiree terminates employment and again retires, a new retirement application is required and the enhanced pension will be effective the first of the month following the month of the latest termination.
6. The determining factors for common-law employment versus independent contractor status remain the same.
7. All retirees should contact IMRF before returning to work, for a discussion of the rules and issues to consider.
8. If a retiree begins employment in a position in which participation would be mandatory if a non-retiree were working in that position (i.e. the position normally requires 600/1,000 of work per year), and the retiree wishes to immediately enroll in participation, the retiree may voluntarily suspend their pension. The request must be in writing and is effective upon receipt in IMRF offices in accordance with 40 ILCS 5/7-217(e). If the retiree does not voluntarily suspend their pension, they will continue to receive their pension until the time they are enrolled under these rules.
2. Suspension of a retiree’s pension
1. After the retiree hits 600/1,000 hours and is enrolled, the pension will be suspended while the retiree continues employment with that participating employer and performs services.
2. To avoid enrollment and suspension of the pension, the retiree must stop working at 599/999 hours. The retiree can begin working again on or after the one-year anniversary date of the employment start date with that employer. To avoid enrollment and suspension, this will be repeated annually while the retiree is employed by that employer.
3. If a retiree terminates employment after re-enrolling, the retiree may return to work for that employer again after the next following anniversary of the employment start date as defined above in Section (A)(3). If the retiree returns to work sooner than that date, they must be enrolled immediately regardless of expected hours and the pension must be suspended.
4. If a retiree hits 600/1,000 hours and completely severs the employment relationship with the employer in that same month, the pension will not be suspended.
5. Re-enrollment will be required if the retiree hits 600/1,000 hours and does not sever the employment relationship, regardless of how few hours over 599/999 is actually worked.
3. To the extent that these rules modify the existing return to work rules set by this Board, these rules will be applicable to all annuitants, both present and future, on January 1, 2021.