August 23, 2012

New Limitations on the Re-employment of Retirees

AT THE close of the Spring legislative session, the Illinois General Assembly passed a bill calling for new restrictions on the re-employment of retirees. Governor Patrick Quinn is expected to sign this bill, House Bill 4996. While rehired retirees are a small proportion of the University’s workforce, HB 4996 is expected to have a significant impact on University hiring policies and procedures, employing departments, and on retirees who may wish to return to work.

HB 4996 will limit the re-employment of individuals receiving an annuity from the State Universities Retirement System (SURS) to 18 paid weeks and 40% of pre-retirement salary. When service and compensation exceed those limits, the University will be required to pay SURS a contribution equal to the amount of the individual’s annual annuity. Re-employed annuitants paid from Federal, trust, foundation, or corporate funds, or from a State grant in which they have been named the principal investigator, will be exempted from these restrictions.

A UNIVERSITY-WIDE work group has been formed to review policies, processes, systems, and reports that may need to be revised to comply with HB 4996. This group will work with University colleges and departments, as well as with SURS, to identify effective and efficient ways to achieve compliance.

IF YOU have questions or concerns about the impact of HB 4996, contact UIC Human Resources at or email for assistance.

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