UNIVERSITY OF ILLINOIS SYSTEM POLICY HIGHLIGHTS

• Retiree rehire (RR) request forms MUST be completed and approved BEFORE each appointment. 
• A Statement of SURS Annuity Status (SOSAS) form MUST be completed for EACH appointment and MUST be attached with EACH RR request.
• There must be a clear separation from the University before any post-retirement employment may be considered or discussed. 
• Retiree appointments are intended to be temporary as the University expects and requires effective succession planning and does not intend to use retirees as a substitute for developing well-qualified faculty and staff. 
• An I-9 MUST be completed according to the standard compliance timeline for the first post-retirement appointment that is paid. Review the University of Illinois System’s I-9 procedures for additional I-9 information. 
• Important terms for SURS annuitants; SURS provides the annuitant with both figures:

Highest Annual Earnings (HAE): This figure is calculated based on pre-retirement earnings. Non-exempt earnings count towards the annuitant’s HAE, but exempt earnings do not. The employer may be assessed a fee by SURS if an annuitant exceeds 40% of their HAE.

Personal Earnings Limitation: This figure sets the maximum earnings allowed from SURS-covered employers post-retirement. Non-exempt and exempt earnings count toward the annuitant’s personal earnings limitation. The retiree’s annuity may be impacted if the annuitant exceeds their personal earnings limitation.

RETURN TO WORK LIMITATIONS

SURS ANNUITANTS

• May not return post-separation until at least 60 calendar days have passed.
• Do have a highest annual earnings figure.
• Are subject to the 40% highest annual earnings limitation (HAE). Please review the GENERAL INFORMATION section of this document for additional information about the HAE.
• Do have a personal earnings limitation.

LUMP SUM RECIPIENTS OR RETIRED VIA THE RETIREMENTS SAVINGS PLAN (RSP/SMP)

• May return post-separation prior to 60 calendar days passing.
• Do not have a highest annual earnings figure.
• Are not subject to the 40% highest annual earnings limitation.
• Do not have a personal earnings limitation.

GENERAL INFORMATION

• The SURS year runs 09/01/XXXX – 08/31/XXXX.
• Review information about the Paid Leave for All Workers Act to determine a retiree’s eligibility.

  NOTE: Leave balances paid from non-exempt sources at the initial separation and any separations as a retiree count towards the HAE for the SURS year in which the separation occurred.

• Monitor earnings to ensure an annuitant’s payments from non-exempt fund sources remain below 40% of the annuitant’s highest annual earnings (HAE).
• The HAE is provided to the annuitant by SURS, and the annuitant must be aware of their personal earnings limitation as well. Both figures are provided by SURS and the retiree should contact SURS for additional information.
• SURS-year non-exempt earnings (e.g., state funds) in excess of 40% of the annuitant’s HAE will result in the person becoming an affected annuitant. Once an annuitant is affected, the annuitant remains affected.
• Employing an affected annuitant during a SURS year will result in a SURS bill equal to one year’s annuity payments; the bill will be paid by the employing unit(s).

  EXAMPLE: A unit employs an affected annuitant with a yearly annuity of $100,000 from SURS. In this scenario, the unit should expect a bill from SURS for ~$100,000 each SURS year (09/01/XXXX – 08/31/XXXX) the person is employed.

• Earnings from exempt funds (e.g., most grant funds) do not account towards the annuitant’s HAE figure. If the annuitant is paid from exempt and non-exempt funding sources, only the non-exempt funds count towards the HAE. Exempt and non-exempt funds count towards the personal earnings limitation.
• Complete the close to affected annuitant template letter (APPENDIX A) and provide it to the annuitant when the estimated earnings from non-exempt funds sources are 35% or more than the annuitant’s HAE.
• Units are responsible for tracking earnings via the rehired retiree progress report in the HR reporting portal. Contact your Unit Security Contact should you need access to either.
• ALWAYS USE TR as the e-class when appointing retirees in HRFE, including retirees that only hold UA appointments.

ADDITIONAL RESOURCES

• 40 ILCS 5/: Illinois Pension Code
• 40 ILCS 5/15-139.5: Return to Work by Affected Annuitant; Notice and Contribution by Employer
• Statement of SURS Annuity Status (SOSAS) Form
• SURS: Contact Information
• SURS: General Website
• University of Illinois Board of Trustees Policy: Employment of UI Retirees and Other State Universities Retirement System Annuitants