POLICY: It is the policy of Spoon River College to comply with the State Universities Retirement System (SURS) Illinois Pension Code (40 ILCS 5/15-139, 139.5).
SCOPE:
This policy applies to all Spoon River College employees.
DEFINITIONS:
Affected Annuitant: A person receiving a SURS retirement annuity becomes an “affected annuitant” on the first day of the academic year following the academic year in which the annuitant first meets both of the following conditions:
While receiving a SURS retirement annuity, the annuitant has been employed on or after August 1, 2013 by one or more SURS covered employers for a total of more than 18 paid weeks; AND
While receiving a SURS retirement annuity, the annuitant has been employed on or after August 1, 2013 by one or more SURS covered employers and received or became entitled to receive during an academic year compensation for that employment in excess of 40% of his or her highest Annual Earnings prior to retirement.
These requirements apply to all SURS annuitants except when the SURS’ annuitant’s compensation is paid from federal, corporate, foundation, or trust funds or grants of State funds that identify the principal investigator by name.
Note: if an employee fails to provide information about their affected annuitant status in a timely manner or falsifies information, the employee may be financially responsible to the College for any additional cost and may be subject to criminal penalties.
DETAILS:
Earnings Limitations for SURS Annuitants: SURS Traditional and Portable annuitants returning to work at the College must immediately notify the Human Resources Office and SURS of their return to work because their earnings are subject to the following limitations:
SURS annuitants may not be employed by a SURS covered employer until 60 days after the beginning of the retirement annuity payment period.
If annuity payments begin for an annuitant at age 60 or later, the earnings from a SURS-Covered Employer during any academic year after retirement may not exceed their Annual Earnings Limitation as specified on the annuitant’s SURS Certification of Retirement Form or equivalent document.
If annuity payments begin for an annuitant before age 60, the monthly earnings from a SURS-Covered Employer may not exceed the annuitant’s Monthly Earnings Limitation as specified on the annuitant’s SURS Certification of Retirement Form or equivalent document.
If the salary of the annuitant upon return to work exceeds the limitations outlined above, his or her SURS annuity payments may be reduced or suspended. There is no limitation on post-retirement earnings if the SURS annuitant returns to work with an employer who is not covered by SURS. If a SURS annuitant retired under reciprocity from another state retirement plan, he or she should contact SURS and the other retirement system to ascertain the applicable earnings limitation(s).
All College applicants and employees are required to disclose to the Human Resources Office the following information:
SURS Annuitant Status, including whether the individual qualifies as an affected annuitant (see definition above);
SURS’ Certification of Retirement Annuity Form and/or the annuitants Annual Earnings Limitation and Highest Annual Earnings Determination; and
Employment dates and salary for each SURS covered employers or whom the individual has worked post-retirement.
Any change in the above information or status must be promptly reported to the Human Resources Office.
Affected annuitants employed by the College will not receive or be entitled to receive compensation in excess of 40% of his or her highest Annual Earnings prior to retirement. Exceptions must be approved by the Spoon River College Board of Trustees.
Fiscal Responsibility: State law establishes a mandatory contribution for employers that employ "affected annuitants" (40 ILCS 5/15-139.5). The increased cost imposed on the College when employing an affected annuitant is equal to 12 x (Gross monthly retirement annuity payable at time of hire – Allowable Earnings).For example applying this formula, if an individual’s gross annuity from SURS is equal to $5,400.00/month and the individual becomes an affected annuitant with a monthly allowable earnings equal to $3,400.00/month; the College would be obligated to contribute $24,000 to SURS each year for that annuitant (12 months X ($5,400-$3,400) = $24,000).
Employment Limitations: All SURS annuitants are subject to any employment limitations set forth by state or federal law or in College procedure or policy.