Section 1650.511  Separation from Service and Return to Work

a)         General Requirements. Under the provisions of the Illinois Pension Code, a member must "separate from service" within the meaning of Section 401(a) of the Internal Revenue Code (26 U.S.C. 401(a)) to be eligible to receive a retirement benefit from the System.  Failure to "separate from service" or to meet the return to work requirements set forth in this Section shall nullify an annuitant's retirement and constitute a return to service under Section 16-150(d) of the Pension Code.

b)         Separation from Service Requirements. To meet the "separation from service" requirement, a member cannot continue to work or return to work with the member's last employer in a licensed or any other position unless:

1)         The member and employer did not agree to nor pre-arrange the member's re-employment before the member's date of termination of employment; and

2)         The member is not re-employed by the member's last employer in a licensed or any other position within 30 days after the member's date of termination of employment.

c)         Return to Work Requirements. To meet the return-to-work requirements under Section 16-118(a) of the Pension Code, an annuitant's re-employment as a teacher as defined in Section 16-106 of the Pension Code will not impair the annuitant's retirement status if the following requirements are met:

1)         As provided in Section 16-118(a)(1) of the Pension Code, the annuitant has not accepted employment as a teacher as defined in Section 16-106 of the Pension Code during the school year in which the member terminated employment; and

2)         Except as provided in Section 16-150.1 of the Pension Code, the annuitant is not employed more than the limit provided in Section 16-118(a)(2) of the Pension Code.

3)         An annuitant and employer cannot avoid the limitations in post-retirement employment provided in Section 16-118 of the Pension Code by allowing the annuitant to relinquish the annuitant's teaching license and continue in the same position.

4)         An annuitant and employer cannot avoid the limitations in post-retirement employment provided in Section 16-118 of the Pension Code by changing the annuitant's pre-retirement job title or by a minor adjustment in the annuitant's pre-retirement job duties causing the annuitant's former position to no longer require licensure under the laws governing the licensure of teachers.

d)         Applicability Date. The portion of subsection (b) that restricts a member from continuing to work or returning to work with the member's last employer in a non-licensed position shall not apply to retirements that commence on or before December 31, 2026.

(Source:  Amended at 50 Ill. Reg. 4774, effective March 13, 2026)