Public Act 98-0389
August 30, 2013
Executive Summary
On August 16, 2013, the governor signed House Bill 1351 into law as Public Act 98-0389.
This legislation changes the return-to-work rules for retirees to require re-enrollment when the actual hours worked exceed 599 or 999 hours, even if the position is not “normally expected” to exceed the hourly standard.
On August 16, 2013, the governor signed House Bill 1351 into law as Public Act 98-0389, effective immediately. The provisions of the bill are explained below.
Public Act 98-0389: Changes return-to-work rules for retirees
Effective date: August 16, 2013
Old Law:
- A retiree* returns to work for an IMRF employer in a position that does not qualify for IMRF participation
- The retiree unexpectedly meets or exceeds the employer’s hourly standard in a 12-month period.
- The retiree’s pension continues because IMRF participation requirements were based upon the expected hourly standard of the position.
New Law:
- A retiree returns to work for an IMRF employer in a position that does not qualify for IMRF participation
- The retiree’s actual work hours exceed 599 or 999 hours (based on the employer’s hourly standard) in a 12-month period, regardless of the position’s expected hourly standard
-
- The employer must re-enroll the retiree in IMRF
- IMRF must suspend the retiree’s pension
- In most cases, the retiree’s 12-month return-to-work period is reset on the anniversary of the retiree’s most recent employment date.
*This law applies only to retirees returning to work. You would enroll all other employees in IMRF if their position is expected to meet or exceed your hourly standard.
Questions?
If you have any questions regarding the information presented in this memorandum, please call an IMRF Member Services Representative at 1-800-ASK-IMRF (1-800-275-4673) 7:30 a.m. to 5:30 p.m., Monday through Friday, or send us a secure message.