Policy
The employment of an annuitant, a lump sum recipient, or a person receiving retirement benefits under the Retirement Savings Plan of the State Universities Retirement System (SURS) shall be governed by this policy and state law, including but not limited to the Illinois Pension Code (40 ILCS 5/15-139, 139.5).
Returning to Work Timeframe
SURS annuitants, lump sum recipients, and those receiving retirement benefits under the Retirement Savings Plan who separate from employment with the University on or after December 31, 2024 will not be allowed to return to employment in any capacity for at least 26 weeks following their separation date.
SURS annuitants must have a clear separation from SURS-covered employment and have no written or verbal agreement to return to work for a SURS-covered employer, including in an unpaid capacity, at the time of retirement.
Earnings Limitations for SURS Annuitants
SURS Traditional and Portable annuitants returning to work at the University must proactively notify the designated Human Resources contact and SURS of their intention to return to work because their earnings are subject to the following limitations:
- If annuity payments begin for an annuitant at age 60 or later, the annual earnings from a SURS Covered Employer during any SURS academic year (September 1 – August 31) after retirement may not exceed 90% of the earnings limitations 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. Additionally, the annual earnings from a SURS Covered Employer during any SURS academic year (September 1 – August 31) after retirement may not exceed 90% of the earnings limitations specified on the annuitant's SURS Certification of Retirement Form or equivalent document.
Individuals who retired under the SURS Retirement Savings Plan or took a lump sum benefit in lieu of an annuity are not subject to an earnings limitation.
If the salary of the annuitant upon return to work exceeds the limitations outlined above, their SURS annuity payments may be reduced or suspended. If a SURS annuitant retired under reciprocity from another state retirement plan, they should contact SURS and the other retirement system to ascertain the applicable earnings limitation(s) and provide necessary documentation to establish all earning limitations with Human Resources.
Earnings received from Agreements for Services may be included in the total SURS reportable compensation each academic year.
All University applicants and employees are required to disclose to the designated Human Resources contact, the following information:
- SURS Annuitant Status, including whether the individual qualifies as an affected annuitant (see definition below);
- 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 Employer for whom the individual has worked post-retirement.
Any change in the above information or status must be promptly reported to the designated Human Resources contact.
Affected Annuitant
An annuitant becomes an "affected annuitant" if, while receiving a SURS retirement annuity, they are employed by a SURS Covered Employer and receive, during any SURS academic year, more than 40% of their SURS annuitant's Highest Annual Earnings prior to retirement.
If an employee fails to provide information about their affected annuitant status in a timely manner or falsifies information, the employee may be terminated for cause.
Fiscal Responsibility
It is Illinois State University's policy to be fiscally responsible in hiring affected annuitants. State law establishes a mandatory contribution for employers that employ "affected annuitants" (40 ILCS 5/15-139-5). In addition to salary and benefits paid to the hired affected annuitant, the increased cost imposed on the University when employing an affected annuitant is equal to twelve times the amount of the gross monthly retirement annuity payable to the annuitant.
Offers to applicants identified as affected annuitants must receive advance written Vice Presidential approval. Hiring departments are financially responsible for any additional costs imposed on the University as the result of employing an affected annuitant, whether anticipated or unexpected, and must coordinate those costs with Human Resources and their respective Vice President.
Employment Limitations
All SURS annuitants, lump sum recipients, and those receiving retirement benefits under the Retirement Savings Plan are subject to any employment limitations set forth by state or federal law or in University procedure or policy.
SURS annuitants are not eligible for rehire in continuous positions of employment. Exceptions will be granted to those who are hired into Civil Service status appointment positions, lump sum recipients, and those receiving retirement benefits under the Retirement Savings Plan.