PEN CD-IMRF-ANNUITY SUSPENSION

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104TH GENERAL ASSEMBLY
State of Illinois
2025 and 2026
HB4572

Introduced 1/30/2026, by Rep. Janet Yang Rohr

SYNOPSIS AS INTRODUCED:

40 ILCS 5/7-141

from Ch. 108 1/2, par. 7-141
40 ILCS 5/7-144

from Ch. 108 1/2, par. 7-144
30 ILCS 805/8.50 new

Amends the Illinois Municipal Retirement Fund (IMRF) Article of the
Illinois Pension Code. Provides that, if the retirement application of any
annuitant under the Article must be retroactively denied because there was
not a separation from service, and the participating municipality or
participating instrumentality that employs, re-employs, or contracts with
that annuitant knowingly fails to notify the Board of such service, the
Board may review the totality of circumstances regarding the member not
having a separation of service and assign proportionate responsibility for
reimbursement of the total of any annuity payments made to the annuitant in
error, as determined by the Board, between the participating municipality
or participating instrumentality and the annuitant, less any amount
actually repaid by the annuitant. Provides that the total amount repaid by
the annuitant plus any amount reimbursed by the employer to the Fund shall
not be more than the total of all annuity payments made to the annuitant in
error. Adds similar provisions to a provision concerning the suspension of
retirement annuities during employment, and removes language providing
that those provisions shall not apply if the annuitant returned to work for
the employer for less than 12 months. Amends the State Mandates Act to
require implementation without reimbursement.
LRB104 16944 RPS 30358 b
STATE MANDATES ACT MAY REQUIRE REIMBURSEMENT
MAY APPLY

A BILL FOR

HB4572
LRB104 16944 RPS 30358 b
1

AN ACT concerning public employee benefits.

2

Be it enacted by the People of the State of Illinois,
3
represented in the General Assembly:

4

Section 5.
The Illinois Pension Code is amended by
5
changing Sections 7-141 and 7-144 as follows:

6

(40 ILCS 5/7-141)

(from Ch. 108 1/2, par. 7-141)
7

Sec. 7-141.
Retirement annuities; conditions.
Retirement
8
annuities shall be payable as hereinafter set forth:
9

(a) A participating employee who, regardless of cause, is
10
separated from the service of all participating municipalities
11
and instrumentalities thereof and participating
12
instrumentalities shall be entitled to a retirement annuity
13
provided:
14

1. He is at least age 55 if he is a Tier 1 regular
15

employee, he is age 62 if he is a Tier 2 regular employee,
16

or, in the case of a person who is eligible to have his
17

annuity calculated under Section 7-142.1, he is at least
18

age 50;
19

2. He is not entitled to receive earnings for
20

employment in a position requiring him, or entitling him
21

to elect, to be a participating employee;
22

3. The amount of his annuity, before the application
23

of paragraph (b) of Section 7-142 is at least $10 per

HB4572
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LRB104 16944 RPS 30358 b
1

month;
2

4. If he first became a participating employee after
3

December 31, 1961 and is a Tier 1 regular employee, he has
4

at least 8 years of service, or, if he is a Tier 2 regular
5

member, he has at least 10 years of service. This service
6

requirement shall not apply to any participating employee,
7

regardless of participation date, if the General Assembly
8

terminates the Fund.
9

(a-5) If the retirement application of any annuitant under
10
this Article must be retroactively denied because there was
11
not a separation from service as required by subsection (a) of
12
this Section, and the participating municipality or
13
participating instrumentality that employs, re-employs, or
14
contracts with that annuitant knowingly fails to notify the
15
Board of such service, the Board may review the totality of
16
circumstances regarding the member not having a separation of
17
service and assign proportionate responsibility for
18
reimbursement of the total of any annuity payments made to the
19
annuitant in error, as determined by the Board, between the
20
participating municipality or participating instrumentality
21
and the annuitant, less any amount actually repaid by the
22
annuitant. In no case shall the total amount repaid by the
23
annuitant plus any amount reimbursed by the employer to the
24
Fund be more than the total of all annuity payments made to the
25
annuitant in error.

26

(b) Retirement annuities shall be payable:

HB4572
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LRB104 16944 RPS 30358 b
1

1. As provided in Section 7-119;
2

2. Except as provided in item 3, upon receipt by the
3

fund of a written application. The effective date may be
4

not more than one year prior to the date of the receipt by
5

the fund of the application;
6

3. Upon attainment of the required age of distribution
7

under Section 401(a)(9) of the Internal Revenue Code of
8

1986, as amended, if the member (i) is no longer in
9

service, and (ii) is otherwise entitled to an annuity
10

under this Article;
11

4. To the beneficiary of the deceased annuitant for
12

the unpaid amount accrued to date of death, if any.
13
(Source: P.A. 102-210, Article 5, Section 5-5, eff. 7-30-21;
14
102-210, Article 10, Section 10-5, eff. 1-1-22; 102-813, eff.
15
5-13-22.)

16

(40 ILCS 5/7-144)

(from Ch. 108 1/2, par. 7-144)
17

Sec. 7-144.
Retirement annuities; suspended during
18
employment.
19

(a) If any person receiving any annuity again becomes an
20
employee and receives earnings from employment in a position
21
requiring him, or entitling him to elect, to become a
22
participating employee, then the annuity payable to such
23
employee shall be suspended as of the first day of the month
24
coincidental with or next following the date upon which such
25
person becomes such an employee, unless the person is

HB4572
- 4 -
LRB104 16944 RPS 30358 b
1
authorized under subsection (b) of Section 7-137.1 of this
2
Code to continue receiving a retirement annuity during that
3
period. Upon proper qualification of the participating
4
employee payment of such annuity may be resumed on the first
5
day of the month following such qualification and upon proper
6
application therefor. The participating employee in such case
7
shall be entitled to a supplemental annuity arising from
8
service and credits earned subsequent to such re-entry as a
9
participating employee.
10

Notwithstanding any other provision of this Article, an
11
annuitant shall be considered a participating employee if he
12
or she returns to work as an employee with a participating
13
employer and works more than 599 hours annually (or 999 hours
14
annually with a participating employer that has adopted a
15
resolution pursuant to subsection (e) of Section 7-137 of this
16
Code). Each of these annual periods shall commence on the
17
month and day upon which the annuitant is first employed with
18
the participating employer following the effective date of the
19
annuity.
20

Notwithstanding any other provision of this Article, an
21
annuitant receiving an annuity under Section 7-142.1 shall be
22
considered a participating employee if the annuitant returns
23
to work as a school security guard employed by a participating
24
employer and works more than 999 hours annually.
25

(a-5) If any annuitant under this Article must be
26
considered a participating employee per the provisions of

HB4572
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LRB104 16944 RPS 30358 b
1
subsection (a) of this Section, and the participating
2
municipality or participating instrumentality that employs or
3
re-employs that annuitant knowingly fails to notify the Board
4
that the annuitant has returned to a qualifying position, the
5
Board may review the totality of circumstances of the return
6
to work and assign proportionate responsibility for
7
reimbursement of the total of any annuity payments made to the
8
annuitant after the date the annuity should have been
9
suspended, as determined by the Board, between

to suspend the
10
annuity,
the participating municipality or participating
11
instrumentality
and the annuitant, less any amount actually
12
repaid by the annuitant

may be required to reimburse the Fund
13
for an amount up to one-half of the total of any annuity
14
payments made to the annuitant after the date the annuity
15
should have been suspended, as determined by the Board
. In no
16
case shall the total amount repaid by the annuitant plus any
17
amount reimbursed by the employer to the Fund be more than the
18
total of all annuity payments made to the annuitant after the
19
date the annuity should have been suspended.
This subsection
20
shall not apply if the annuitant returned to work for the
21
employer for less than 12 months.
22

The Fund shall notify all annuitants that they must notify
23
the Fund immediately if they return to work for any
24
participating employer. The notification by the Fund shall
25
occur upon retirement and no less than annually thereafter in
26
a format determined by the Fund. The Fund shall also develop

HB4572
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LRB104 16944 RPS 30358 b
1
and maintain a system to track annuitants who have returned to
2
work and notify the participating employer and annuitant at
3
least annually of the limitations on returning to work under
4
this Section.
5

(b) Supplemental annuities to persons who return to
6
service for less than 48 months shall be computed under the
7
provisions of Sections 7-141, 7-142, and 7-143. In determining
8
whether an employee is eligible for an annuity which requires
9
a minimum period of service, his entire period of service
10
shall be taken into consideration but the supplemental annuity
11
shall be based on earnings and service in the supplemental
12
period only. The effective date of the suspended and
13
supplemental annuity for the purpose of increases after
14
retirement shall be considered to be the effective date of the
15
suspended annuity.
16

(c) Supplemental annuities to persons who return to
17
service for 48 months or more shall be a monthly amount
18
determined as follows:
19

(1) An amount shall be computed under subparagraph b
20

of paragraph (1) of subsection (a) of Section 7-142,
21

considering all of the service credits of the employee.
22

(2) The actuarial value in monthly payments for life
23

of the annuity payments made before suspension shall be
24

determined and subtracted from the amount determined in
25

paragraph (1) above.
26

(3) The monthly amount of the suspended annuity, with

HB4572
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LRB104 16944 RPS 30358 b
1

any applicable increases after retirement computed from
2

the effective date to the date of reinstatement, shall be
3

subtracted from the amount determined in paragraph (2)
4

above and the remainder shall be the amount of the
5

supplemental annuity provided that this amount shall not
6

be less than the amount computed under subsection (b) of
7

this Section.
8

(4) The suspended annuity shall be reinstated at an
9

amount including any increases after retirement from the
10

effective date to date of reinstatement.
11

(5) The effective date of the combined suspended and
12

supplemental annuities for the purposes of increases after
13

retirement shall be considered to be the effective date of
14

the supplemental annuity.
15

(d) If a Tier 2 regular employee becomes a member or
16
participant under any other system or fund created by this
17
Code and is employed on a full-time basis, except for those
18
members or participants exempted from the provisions of
19
subsection (a) of Section 1-160 of this Code (other than a
20
participating employee under this Article), then the person's
21
retirement annuity shall be suspended during that employment.
22
Upon termination of that employment, the person's retirement
23
annuity shall resume and be recalculated as required by this
24
Section.
25

(e) If a Tier 2 regular employee first began participation
26
on or after January 1, 2012 and is receiving a retirement

HB4572
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LRB104 16944 RPS 30358 b
1
annuity and accepts on a contractual basis a position to
2
provide services to a governmental entity from which he or she
3
has retired, then that person's annuity or retirement pension
4
shall be suspended during that contractual service,
5
notwithstanding the provisions of any other Section in this
6
Article. Such annuitant shall notify the Fund, as well as his
7
or her contractual employer, of his or her retirement status
8
before accepting contractual employment. A person who fails to
9
submit such notification shall be guilty of a Class A
10
misdemeanor and required to pay a fine of $1,000. Upon
11
termination of that contractual employment, the person's
12
retirement annuity shall resume and be recalculated as
13
required by this Section.
14
(Source: P.A. 103-154, eff. 6-30-23; 104-163, eff. 8-15-25.)

15

Section 90.
The State Mandates Act is amended by adding
16
Section 8.50 as follows:

17

(30 ILCS 805/8.50 new)
18

Sec. 8.50.
Exempt mandate.
Notwithstanding Sections 6 and
19
8 of this Act, no reimbursement by the State is required for
20
the implementation of any mandate created by this amendatory
21
Act of the 104th General Assembly.

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