TIER 2 MEMBER GUIDE July 2020

TEACHERS’ RETIREMENT SYSTEM OF THE STATE OF ILLINOIS Foreword

July 2020 The new pension law does not apply to anyone who The Member Guide provides an overview of your has TRS service prior to Jan. 1, 2011. These members TRS benefits. You are a member of Tier 2 in the remain participants of Tier 1, not Tier 2. Teachers’ Retirement System of the State of Illinois This guide has been prepared to answer general ques- (TRS) because you first contributed to TRS on or tions that you have about us, the services we offer, after Jan. 1, 2011 and you have no pre-existing credit- and your responsibilities as a member or an annui- able service with a reciprocal pension system prior to tant. We make every effort to provide you with the Jan. 1, 2011. most current information, including rule changes A member first contributes to TRS on his or her first enacted by our Board of Trustees and benefit changes day of paid service. resulting from legislation. This guide includes legisla- tive changes signed into law as of July 1, 2020. Public Act 96-0889, which was signed into law in spring 2010, added a new section to the Pension Code Effective June 1, 2011, Illinois law entitles a party that applied different benefits to anyone who first to a civil union to the same legal obligations, contributed to TRS on or after Jan. 1, 2011 and did not responsibilities, protections, and benefits as are have any previous service credit with a pension sys- afforded or recognized by the law of Illinois to tem that has reciprocal rights with TRS. These mem- spouses. For information about changes that have bers are referred to as “Tier 2” members. Changes occurred since the publication of this guide, see from the “Tier 1” pension law include raising the min- our Topics & Report newsletter by visiting the imum eligibility to draw a retirement benefit to age TRS website (http://www.trsil.org). 67 with 10 years of service, initiating a cap on the sal- It is our policy to comply with all applicable federal aries used to calculate retirement benefits, and limit- and state laws, rules, and regulations. If there is a con- ing cost-of-living annuity adjustments to the lesser of flict between information contained in this guide and 3 percent or ½ of the annual increase in the Consumer the applicable law, rule or regulation, the law, rule or Price Index, not compounded. The retirement for- regulation takes precedence. mula is unchanged.

2 Chapter 1:

Introduction Created by the Illinois General Assembly in 1939, TRS has grown to be one of the largest teachers’ retirement systems in the United States with more than 420,000 active members, annuitants and benefit recipients.

We provide retirement benefits for teachers who are Retirement Insurance Program (TRIP). Federal employed by all Illinois public common and charter law prohibits TRS monies from being placed in the school districts located outside the city of Chicago. THIS Fund. The Illinois Pension Code contains the laws relating to our creation, benefits, and administration. Qualified pension plan status TRS operates a qualified pension plan under provi- Administration sions of the Internal Revenue Code, Section 401(a). TRS is governed by a 15-member Board of Trustees. The advantages of being a qualified plan include: Trustees include the state superintendent of educa- • tax-sheltering of mandatory retirement contribu- tion, seven trustees appointed by the governor, five tions in the year that they are made to TRS; trustees elected by contributing TRS members, and • deferral of income taxes on con­tributions until two trustees elected by TRS annuitants. your retirement, at which time your effective tax The Board of Trustees appoints an executive direc- rate may be lower; and tor who also serves as the secretary of the Board of • tax-free accumulation of interest credited to you Trustees. The executive director is responsible for by TRS. daily operations at TRS. To maintain our qualified pension status, we must Funding meet certain Internal Revenue Service requirements, We have several sources of funding: including: • member contributions, • annual benefit, salary, and contribution • investment income, limitations; • employer contributions, and • compensation that may be reported for benefit calculation purposes; • appropriations from Illinois state government. • benefit eligibility provisions; As an active member, you contribute 9 percent of your salary toward retirement each year. We invest • benefit distribution limitations; and these assets to create diversified investment income. • rollover restrictions. Our investment portfolio, which is managed by exter- We are dedicated to complying with all requirements nal investment management firms and monitored by for qualified plans. our investment staff and consultant, includes stocks, bonds, real estate, cash and equivalents, and private Confidentiality markets. Employer contributions and appropriations All information contained in a member’s record is con- from Illinois state government make up the remaining fidential. We provide such information to the mem- funding sources. ber, to others at the member’s written request, As a remittance agent for the State of Illinois to other retirement systems subject to the Illinois Department of Central Management Services (CMS), Retirement Systems Reciprocal Act, to the state we collect additional contributions from active of Illinois for annuitant health insurance purposes, members and employers to help fund the Teachers’ and to the Social Security Administration for gov- Health Insurance Security (THIS) Fund. Revenues ernment pension offset determination and wind- from the THIS Fund are used to finance the Teachers’ fall elimination purposes. Member information also 3 may be given pursuant to a subpoena issued during of an application or enrollment process, to estab- court proceedings. lish, amend, or terminate your TRS account, or to con- firm the accuracy of your SSN. For information about Social Security SSNs and Qualified Illinois Domestic Relations Orders TRS requires Social Security numbers (SSNs) for tax (QILDROs), please consult our QILDRO publication. reporting obligations associated with payment of ben- efits and refunds and for internal verification and Administrative review administrative purposes. You may rest assured that Any members, annuitants, beneficiaries, or employ- TRS understands identity protection concerns, com- ers may appeal a staff determination or interpretation plies with all applicable identity protection laws, and of the Illinois Pension Code or the TRS rules which spe- has policies and procedures in place to protect your cifically affects them to the Board of Trustees Claims SSN. We will never require you to transmit your SSN Hearing Committee. A written request must be filed over the internet unless the connection is secure or for an administrative review with the executive direc- the SSN is encrypted. We will redact your SSN from tor no later than six months after a TRS staff disposi- information or documents before release as part of tion or interpretation is given. The TRS Board does not a public records request. We will only print your SSN provide advisory opinions. on documents and forms that we mail to you as part

4 Chapter 2: Membership TRS is the retirement system for educators in positions requiring licensure under the Illinois School Code and employed in public schools outside the city of Chicago.

Covered positions • a buildings and grounds manager, You qualify for TRS membership if you are employed • a bus driver, as: • a cafeteria worker, • an assistant regional superintendent of education, • a clerical worker, • a chief school business official, • a construction manager, • a classroom teacher, • a contract speech pathologist under section 5/14-6.04 of the School Code, • a driver education teacher, • a custodian, • an employee of a regional superintendent in an educational program that serves two or more dis- • a graduate general administrator intern, tricts and in a position that requires licensure, • a home educator/parent educator, • a regional superintendent of education, • an individual aide, • a retired teacher if post-retirement employment • a mobility instructor, limitations are exceeded, • a non-licensed school administrator, • a school administrator requiring licensure, • an occupational therapist, • a school librarian, • a paraprofessional/teacher’s aide, • a school nurse, • a physical therapist, • a school psychologist, • a physical therapist assistant, • a school social worker, • a psychologist intern, • a substitute or part-time teacher, or • a retired teacher who complies with post- • a teacher of homebound students. retirement employment limitations, You also may be a member of TRS if you are employed • a secretary, in a position requiring teacher licensure in cer- • a security guard, tain state government agencies or in certain posi- tions with the Illinois State Board of Education (ISBE) • a social worker intern, or TRS. • a speech and language pathologist assistant, Noncovered positions • a student teacher or worker, You do not qualify for TRS membership if you are • an ROTC instructor, employed as: • a tutor, • an adult education teacher, • a technology director not requiring licensure,* or • an assistant athletic director or athletic director • a transportation director. not requiring licensure,* Positions that do not qualify for TRS membership • an athletic official with IHSA or similar contract, may be covered by the Illinois Municipal Retirement • a behavior analyst, Fund (IMRF).

* Depending on the job duties, these positions may or may not require licensure. 5 The preceding lists are not all-inclusive. Contact ISBE proof of birth includes: a copy of your birth certifi- with any questions regarding licensure requirements. cate, valid passport, valid driver’s license or any other state-issued identification card displaying your date of Effective date of membership birth. The effective date of your TRS membership is the day you begin employment in a TRS-covered position. If Felony conviction your employer has not recorded your date of employ- If you are convicted of a work-related felony while ment, your membership date is the first payroll day you are a member of TRS, you become ineligible for for which contributions from your salary are required. TRS membership and benefits. However, you may take a refund of your TRS retirement contributions. Proof of birth (See “Refund of Retirement Contributions.”) If you have not already submitted a “proof of birth” If you are convicted while an annuitant, you are enti- in the secure member area online, it must be provided tled to a refund of your retirement contributions that to TRS in order to receive future benefits. Acceptable have not been paid as an annuity benefit.

6 Chapter 3:

Earnings Your earnings help to determine the amount of your future pension benefit and are the basis upon which TRS retirement contributions are determined.

Creditable earnings or due and payable along with or prior to your final We recognize the following forms of compensation as paycheck for regular earnings. creditable earnings: • salary or backwage payments resulting from con- • salary you earn for: tract buyouts, labor litigation, and settlement agreements. • regular contractual teaching duties; • retirement incentives and severance payments, • extra-duty earnings: including payments for accumulated vacation º contractual teachers: extra duties related and sick leave, that are paid or due and payable to teaching or the academic program, or along with or prior to your final paycheck for involving supervision of students; regular earnings. º noncontractual teachers: only extra duties • regional superintendent stipends paid from requiring teacher licensure; county funds. • substitute teaching; • stipend paid for becoming National Board • teaching that is completed after school hours, Certified. such as night school or driver education; and • homebound teaching. • honorariums paid to union officers. • stipends paid to administrators for serving as a • gift cards given in lieu of payments that qualify school board officer or clerk. as salary. • longevity stipends. Summer earnings • bonuses. Summer earnings are reportable to TRS on the same basis as employment during the regular school term. • wages while using vacation, sick leave, and personal leave. Summer-school teaching and summer extra duties that require teacher licensure are reportable as credit- • employer-paid TRS contributions for members. able earnings. For full-time and part-time contractual • contributions to tax-sheltered annuities under the teachers, summer extra duties involving supervising Internal Revenue Code, Section 403(b) or to a qual- students and summer duties related to the academic ified tax-deferred compensation plan under the program are also reportable as creditable earnings. Internal Revenue Code, Sections 457(b) or 401(a). Active military duty • contributions to a flexible benefit plan. A “flexible Members called to active military duty receive full benefit plan” is an option offered by an employer earnings and TRS service credit while on active duty to employees who are covered under TRS to without paying any contributions. receive cash or contributions to a 403(b) tax-shel- tered annuity or 457(b) deferred compensation Limitations plan in lieu of employer-provided insurance. Federal limits • payments made by your employer for the pur- Members receive credit for earnings up to the annual chase of optional service credit. To be reportable amount allowed by federal law. as creditable earnings, the payments must be paid

7 Noncreditable earnings Fringe benefits Noncreditable earnings include compensation earned Employer-paid fringe benefits are not creditable earn- for duties that are unrelated to an academic program. ings unless they are included in a reportable flexi- ble benefit plan. A “flexible benefit plan” is an option The following compensation items do not qualify as offered by an employer to employees who are cov- creditable earnings and cannot be reported to TRS: ered under TRS to receive cash or contributions to a • severance payments that are due and payable and 403(b) tax-sheltered annuity or 457(b) deferred com- paid after your final paycheck for regular earnings pensation plan in lieu of employer-provided insurance. or last day of work, Examples of noncreditable, employer-paid fringe • payment at termination for services that you will benefits include: perform while you are retired, • dental insurance, • lump-sum payments made after your death, • disability insurance, • previously nonreportable or nonreported earn- • health insurance, and ings or benefits that are converted to report- • life insurance (including insurance in excess of able earnings in the last years of service for the $50,000 and split-dollar life insurance). purpose of increasing final average salary. TRS presumes any decrease in noncreditable compen- Expense reimbursements and allowances sation in the last seven creditable school years is Expense reimbursements or allowances are not cred- to increase final average salary, itable earnings, whether they are paid to you or to • workers’ compensation payments, the provider of the service or product. Examples of noncreditable expense reimbursements and • jury duty payments, allowances include: • options to take salary in lieu of employment- • cellular phone reimbursements, related expense allowances or reimbursements, • contributions to medical savings accounts, • payments to substitute and part-time noncontractual (hourly) teachers for extra duties • dependent care reimbursements, that do not require licensure, • employer-provided automobiles, • member THIS Fund contributions paid as a • legal fee reimbursements, benefit, • living or mortgage allowances, • employer TRS and THIS Fund contributions, • medical care reimbursements, • employer payment of Medicare tax, and • membership dues, • contributions to or distributions from nonquali- • moving expenses, fied deferred compensation plans. • publication subscriptions, • travel reimbursements and allowances, and • tuition reimbursements.

8 Chapter 4:

Contributions

You, your employer, and the state of Illinois make contributions to TRS to provide for your retirement, disability, and death benefits.

Member contributions Employer contributions As an active TRS member, you are required to con- Employers contribute a percentage of creditable tribute 9 percent of your gross creditable earnings earnings (defined in Chapter 3: “Earnings”). In addi- toward retirement each year. Your contribution con- tion, if any portion of a member’s creditable earn- sists of: ings is paid from a special trust or federal fund, the • 7.5 percent for retirement annuities, employer pays TRS an additional contribution on creditable earnings paid from that special trust or • 0.5 percent for automatic annual increases federal fund. in annuities, and Employers also make contributions to the THIS Fund. • 1 percent for death benefits. You also must contribute a percentage of your gross State of Illinois contributions creditable earnings to help fund the Teachers’ Health The state of Illinois provides a large source of contri- Insurance Security (THIS) Fund, which finances the butions annually to TRS. Teachers’ Retirement Insurance Program. Assignment of contributions and loans Contributions are withheld from your creditable By law, you are protected from creditors placing a earnings by payroll deduction or are paid by your lien on, garnishing, or confiscating contributions you employer and are credited to your TRS account. Your have made to TRS. This provision does not extend contributions accrue interest at the rate of 6 per- to federal tax levies. You may not assign your TRS cent per year and are sheltered from federal income contributions to a creditor or borrow against your taxes. Annually, you will receive a TRS Benefits Report account funds. that provides information about your contributions. (See “TRS Benefits Report” in Chapter 16.)

9 Chapter 5:

Service Credit

Service credit determines your eligibility for a retirement annuity.

“Days paid” include any weekday (Monday through must remit the full retirement contribution for you Friday) for which payment is made to you for: during your sabbatical leave. The contribution is • administrative absence defined as an absence based on the last reported salary rate prior to your from duty administratively authorized for investi- leave. gative purposes without the loss of pay or bene- Sick leave fits and without charge to leave; When you retire, you may receive a maximum of two • attendance during the work week at teachers’ years (340 days) of service credit for unused, uncom- institutes, workshops, and parent/teacher confer- pensated sick leave that is certified by a TRS employer. ences scheduled in the school calendar; If you receive payment for unused sick leave days and • legal school holidays; the payment is reportable as creditable earnings, • sabbatical leaves in accordance with the you will not receive service credit for those days. If School Code; the payment for sick leave days is not reportable to TRS as creditable earnings, the sick leave days must • Saturday, if it qualifies as a day of service and the be reported. service is required due to a lawful day of attendance; Your last employer certifies the num­ber of unused, • service requiring licensure under the School Code; uncompensated sick leave days you have accrued on • vacation, sick, or personal leave days used prior to the Supplementary Report for Retirement Annuity termination; or Benefits form that is filed with us when you retire. • suspension. Employers annually certify the number of unused, You may also purchase optional service, which is dis- uncompensated sick leave days for members who ter- cussed in Chapter 6: “Optional Service Credit.” minated employment during the past school year. Please check your TRS Benefits Report to determine Annually you will receive a TRS Benefits Report that if any previous employers reported unused sick leave provides information about your service credit. for you. (See “TRS Benefits Report” in Chapter 16.) To be creditable for retirement purposes, sick leave Regular service must be available for your use if you become ill. You earn one year of service credit for any school Service credit is not available for sick leave days that year in which you are employed and receive salary for are added to your record at or near the time you ter- 170 days. minate service for the purpose of increasing your If you earn salary for fewer than 170 days between retirement service credit. July 1 and June 30, you will be granted service credit In certain instances, your employer may agree to add at the ratio of actual number of days paid to 170 days. sick days to your record to restore days lost due to an For example, if you teach three days per week for a earlier, lower cap or because of a negotiated increase total of 108 days, your service credit would be 0.635 of in sick days. a year. (108 ÷ 170 = 0.635) In all cases, any additional days awarded must actually be available for use in the event of illness, accident, or Sabbatical leave disability. The following box shows the calculation to You earn regular service credit for a sabbatical leave determine whether additional days granted are avail- if your employer granted the leave in accordance with able for use and retirement credit. the School Code [105 ILCS 5/24-6.1]. Your employer

10 Number of paid days remaining until termination: ______• Include subsequent years (if applicable) Subtract sick days already recorded on your record ______Additional sick days, if any, that may be granted and available for retirement credit ______

Example Granted days With 180 days (one school year) remaining until you The following situations are regarded as granting sick retire, you have 210 available sick leave days. Your leave in excess of the normal annual allotment. The employer grants you an additional 130 days in an three-step formula must be applied to the extra days attempt to give you two full years of service credit at as of the date they are added to your record to deter- retirement. These added days cannot be reported to mine if they are available for use. TRS because they were not available for your use; at • granted from a sick leave bank to preserve your the time they were granted, you had sufficient sick personal sick leave balance in the final year(s) leave available to cover the remainder of your employ- of service; ment (180 days until retirement less 210 days already • bonus days awarded for good attendance or for on record). You use five days during the school year. not using sick or personal leave; At termination, the district reports 205 (210-5) days • bonus days awarded for reaching a minimum of unused, uncompensated sick leave to TRS. You will accumulation of sick leave; receive credit for 1.206 of a year (205 ÷ 170 = 1.206). • sick leave days awarded in lieu of payment for TRS will not grant service credit for sick leave days: extra duties; • lost as a result of a district imposed sick leave cap; • unused bereavement leave days converted to • not reinstated or granted sufficiently far in sick leave; advance of retirement to be available for use; • unused vacation days converted to sick leave; • granted contingent upon a future event such as • unused personal leave days that accumulate two- retirement; for-one as sick leave or personal leave; • only available for catastrophic or extended • personal leave days that are not available for illnesses; use as sick leave but accumulate as sick leave if • accumulated in excess of a per illness limitation; unused; or • unused, non-designated or no-reason days con- • reportable to another retirement system; verted to sick leave. • earned in years for which you took a refund that has not been repaid; Personal leave days If unused and unpaid personal leave could be used in • available for use in a non-TRS-covered position; the event of illness, they are also reportable for sick • or recorded in other states, even if you purchased leave service credit. out-of-system credit. Vacation TRS will not grant service credit for any days you You will not receive service credit for unused withdrew from a sick leave bank in excess of the days vacation days. you deposited into the bank and did not use.

11 Chapter 6:

Optional Service Credit You can obtain additional credit towards your retirement through purchases of optional service or repayment of refunds.

The purchase of optional service performed prior to Teachers’ Health Insurance Security Jan. 1, 2011 does not change your status from Tier 2 Fund (THIS Fund) Contribution to Tier 1 membership. TRS members, except employees of state agencies, There are several types of optional service. Most have are required to make contributions to the THIS Fund a direct relationship to certified teaching in the public when making an optional service credit purchase schools, but there are certain exceptions such as mili- to help finance the Teachers’ Retirement Insurance tary service credit. Program. Active military service purchases are an To begin the process of purchasing optional service exception to this contribution rule. credit, call TRS at 877-927-5877 (877-9-ASK-TRS) and The THIS Fund amount will vary according to the pur- request the optional service type’s form. In all cases, chase year; it is calculated by using the same rate you must submit the appropriate documentation to that was required that year. For example, the 2012 TRS to purchase the credit. We urge you to do so at THIS contribution rate would apply for a 2012 leave the earliest possible opportunity to avoid disappoint- of absence optional service credit purchase. The ment. With the passage of time, records may become payment must be made to the THIS Fund with a lost, destroyed, or much more difficult to obtain. separate check. Once reported to TRS and verified, the qualifying event is a permanent part of your record at TRS and Out-of-system service can be used in calculating your benefit estimates. Illinois law does not permit credit for teaching ser- You are under no obligation to purchase optional ser- vice that is also used in any other statutory, public vice that you have reported to TRS. employee retirement system except Social Security or a military allotment. You may not receive retire- When to purchase ment benefits from two public pension systems for Purchases of most service credit must be completed the same years of service. before you retire. Additionally, federal tax laws do The following types of full-time, part-time or substi- not permit your survivors to initiate or complete an tute public school teaching qualify as “out-of-system” optional service purchase or refund repayment after service: your death. • other states, territories, or dependencies of the Cost United States; Your cost for out-of-system service, part-time teach- • Chicago public schools; and ing, unreported substitute teaching, homebound • public common schools operated by the teaching, leave of absence, or involuntary layoff, is United States. equal to the amount that would have been required had the service been earned under TRS, plus inter- In addition, employment by a public agency in est, usually at the rate of 6 percent, from the date the professional speech correction or special education in contributions would have been due to the date pay- Illinois, another state, territory, or dependency of the ment is made. The cost for military service credit is United States qualifies. specified within its section.

12 The following types of service do not qualify because Leave of absence or involuntary layoff they were not performed in a public common school: You may purchase service credit for approved leaves • colleges or universities, and of absence or involuntary layoffs. • military instructional centers. A leave of absence is “approved” if: Service requirements • you did not resign; Your out-of-system service must be followed by a min- • your employer promised renewed employment at imum of five years of creditable service earned with the end of the leave; and TRS, the Public School Teachers’ Pension Fund (CTPF) • your employer, through its board, officially or the State Universities Retirement System (SURS). approved your leave; or Once the minimum service requirement has been • your leave qualifies under the federal Family and met, you may establish your out-of-system service Medical Leave Act, as certified by your employer. and pay for it at any time. A layoff is involuntary if it is due to a reduction in The out-of-system service cannot exceed two-fifths force (RIF) authorized under the School Code. An of your total creditable service with TRS at retire- involuntary leave does not include a dismissal for ment. The overall maximum is 10 years. At the time of cause or other performance-related reasons. retirement, you must meet all service requirements for the out-of-system service to be creditable. If you To qualify, you must return to service under TRS or do not meet all service requirements, TRS will refund the State Universities Retirement System (SURS) after the contributions for the ineligible service. No inter- the leave or layoff for one year or the period of the est will be paid. leave/layoff, whichever is less. Reporting Reporting The member, school district and retirement sys- The member and the school district must complete tem must complete the Out-of-System Service the Leave of Absence Certification form using actual Certification form using actual school records. school records. For an involuntary layoff, a letter from the employer indicating the RIF must be received. Part-time teaching TRS annually requests school districts to report You may be eligible to purchase credit for part-time approved leaves of absence. teaching if you worked part-time between July 1, 1969 and June 30, 1990. If you worked in a permanent and Military service continuous position during the entire school term, You may purchase two types of military service: you have already received credit. If your service was • military service that immediately followed Illinois not permanent and continuous, you may purchase public school teaching, and the credit. • military service that did not immediately follow Reporting Illinois public school teaching. The member and the school district must complete You may purchase up to five years of credit, but only the Part-time Service Certification form using actual two may be for service that did not immediately fol- school records. low TRS-covered employment. Substitute and homebound teaching Military service immediately following teaching Before July 1990, substitute teaching service was not If you were drafted or enlisted while teaching, you covered by TRS. You may, however, purchase credit may be able to purchase up to five years of credit. for this service. In addition, you may purchase credit This credit must be purchased before you retire. To for homebound instruction and tutoring service that qualify, your military service must have begun within was paid by a TRS employer. 12 months of teaching service under TRS or CTRF, the plan for Chicago teachers. Credit is granted for actual Reporting military service as well as for federally-sponsored The member and the school district must complete teacher training that followed your discharge from the Substitute or Homebound Service Certification the military. form using actual school records.

13 Reporting rate of 6 percent, is added from the date of first Send us a copy of your U.S. Government Form DD-214 membership in the system or when the contributions or its equivalent. would have been due, whichever is later, until the bal- Cost ance is paid. Your cost is equal to the contributions to TRS that Obtaining a Form DD-214 would have been required had you continued teach- Written requests for duplicate form DD-214 must be ing. Interest is charged, usually at the rate of 6 per- signed and mailed to: cent, from the date the contributions would have National Personnel Records Center been due to the date payment is made. (Military Personnel Records) Military service NOT immediately following 9700 Page Ave. teaching St. Louis, MO 63132-5100 If you were not teaching in a position covered by TRS or CTRF at the time you joined the military, you may Service canceled by a refund be eligible to purchase up to two years of credit for When you take a refund of your TRS contributions, your military service. This credit must be purchased your TRS membership ends and all creditable service before you retire. is canceled. This service cannot be reinstated or used for calculating benefits until you: Reporting Send us a copy of your U.S. Government Form DD-214 • repay the entire refund with interest from the or its equivalent. date the refund was made until the date you repay the refund, and Cost • complete one year of TRS creditable service fol- The cost is based on the total normal cost in effect on lowing the refund, or the date of application. This rate, which is determined by our actuaries each year, includes both employer • complete two years of creditable service under a and employee contribution costs. The rate is multi- reciprocal retirement system. plied by the salary for your first year of teaching after Remember, Illinois law does not permit credit for military service. teaching service that is also used in any other stat- The salary must be for a position that required man- utory, public employee retirement system except datory contributions to TRS. Interest, usually at the Social Security or a military allotment.

14 Chapter 7:

Payment Options

Eligible optional service or repayment of refunds purchases before retirementwill add to your service credits for retirement eligibility.

Several options are available to pay for optional ser- • an annuity plan described in Internal Revenue vice or refunds. The table below will help you select Code (IRC), Section 403(a); an option. • a tax-sheltered annuity contract described in IRC, Optional THIS Section 403(b); Service Refund Fund* • an individual retirement account or annuity (IRA) After-tax lump sum Yes Yes Yes under IRC, Section 408(a) or Section 408(b) that is After-tax installment Yes Yes Yes eligible to be rolled over and would otherwise be Tax-sheltered rollover Yes Yes No included in gross income; * Must be paid with separate check to THIS Fund. • a conduit individual retirement account described in IRC, Section 408(d); Lump-sum or installment payments • a Simplified Employee Pensions Plan (SEP) under You may make a lump-sum payment directly to TRS IRC, Section 408(k); when you purchase optional service credit or repay refunded service. Only purchases of optional ser- • a Savings Incentive Match Plan for Employees vice credit or repayments of refunds may be made in (Simple IRA) under IRC, Section 408(p), if there installment payments directly from you to TRS. Each has been participation in the plan for at least two installment payment must be a minimum of $50. If years; and your total balance due is less than $50, your payment • an eligible deferred compensation plan under must be for the full amount due. IRC, Section 457(b) which is maintained by a state, TRS members, except employees of state agencies, political subdivision of a state, or any agency or are required to make contributions to the Teachers’ instrumentality of a state or political subdivision Health Insurance Security (THIS) Fund when making of a state. an optional service credit purchase to help finance Additionally, TRS will also accept spousal rollovers the Teachers’ Retirement Insurance Program. The of distributions from Section 401(a), 401(k), Keogh, THIS Fund amount will vary according to the purchase 403(a), 403(b) and 457(b) plans that the member’s year; it is calculated by using the same rate that was deceased spouse participated in or that have been required that year. divided by a Qualified Domestic Relations Order. The payment must be made to the THIS Fund with a Roth IRAs are not eligible for rollover. separate check. TRS cannot process the payment without a correctly We accept personal checks, money orders, and completed Rollover Certification form that provides cashiers’ checks. Cash, credit card, and debit card pay- written confirmation from the transferring plan that ments are not accepted. the amounts deposited are eligible for rollover treat- ment. Rollover eligibility is governed by federal law Rollovers and providers’ rules and regulations. TRS can accept rollover contributions (other than The rollover amount cannot exceed the amount due after-tax contributions) from: to TRS. For more information about rollovers and • another qualified Section 401(a) or 401(k) or to obtain the form to initiate the rollover, please Keogh plan; contact us.

15 Chapter 8:

Retirement Benefits

You’ve been preparing children for their futures while we’ve been building your retirement security. Whether you are retiring soonor years from now, we can help with your retirement planning.

Retirement annuity Average salary Your retirement benefit will be provided for your Benefits will be based on the member’s highest aver- lifetime. age salary earned during eight consecutive years out of the last 10 years of service. Eligibility Tier II requires teachers and administrators to be Two ways annuities are capped 67 years old and have accumulated at least 10 years of Maximum retirement benefit service credit in order to qualify for nonreduced bene- The maximum benefit a member can receive is fits that a member has earned. 75 percent of his or her final average salary. To be eligible for a TRS retirement annuity, the Illinois Capping average salary Pension Code requires you to terminate active ser- In determining a final average salary, no member’s vice as a teacher. It is not permissible to prearrange salary will exceed a limit that is tied to the Consumer post-retirement employment. To meet federal guide- Price Index. Benefits will still be determined by the lines, TRS requires a genuine resignation and that the formula of 2.2 percent multiplied by final average sal- employment relationship be severed prior to the com- ary multiplied by years of creditable service. mencement of benefits. Discounted retirement annuity To establish termination of service, two conditions Tier II members may retire at age 62 with at least must be met. First, you must formally resign from 10 years of service, but will receive retirement bene- your teaching position. Second, you must wait 30 cal- fits reduced 6 percent for every year the member is endar days from the date of resignation before per- under age 67. forming any post-retirement teaching for the same employer. The 30 calendar day wait period does Reversionary annuity not apply if the post-retirement teaching is for When you retire, you will receive a standard annu- another employer. ity from TRS unless you elect to receive a rever- An annuitant who has established termination of ser- sionary annuity. The standard annuity provides the vice may not return to post-retirement teaching in the largest amount pay­able throughout your lifetime. A same school year he or she last contributed to TRS. re­versionary annuity reduces the retirement annuity amount to provide an additional monthly annuity to Designations such as “temporary,” “interim,” and a surviving, designated dependent beneficiary after “independent contractor” will not suffice to establish your death. termination of active service if the continued employ- ment is with the same employer. Electing to receive a reversionary annuity should be a careful decision because of its costs, possible reduc- Once pension eligibility is established, retiring mem- tion in death benefits, and irrevocability. If you elect a bers must comply with post-retirement employ- reversionary annuity, remaining contributions are not ment limitations. (See Chapter 11: “Post-retirement payable at the time of your death. (See Chapter 15: Matters.”) “Refund of Retirement Contributions.”) Under federal law, inactive members are required to Regardless of the type of annuity you select, your take a TRS distribution at age 70½. dependent will receive death benefits from TRS after your death if you have named him or her to receive 16 such benefits on your Member Information and terminate TRS-covered employment and complete an Beneficiary Designation (MIBD) form. (See Chapter 14: application for a single-sum retirement annuity. “Death Benefits.”) Once you receive the single-sum benefit, you may If you elect the reversionary annuity, you must des- teach in a TRS-covered position without restriction ignate the dependent beneficiary to whom you and you will not be required to make contributions. wish the reversionary annuity be paid. This bene- ficiary does not have to be the same as the death Refund of survivor benefit contributions benefit designee. Eligibility When you apply for a retirement annuity or while you Qualifying the beneficiary are receiving a retirement annuity, you may take a In order to qualify your dependent beneficiary for the refund of your survivor benefit contributions if you reversionary annuity, the following must occur prior do not have a dependent beneficiary. (See “Types of to retirement: beneficiaries” in Chapter 14) • resign from your position, The refundable amount is 1 percent of total gross • complete and return the Retirement Application creditable earnings for each year of teaching service. naming your beneficiary, Effect of receiving a refund • complete all required payments When you receive a refund of your survivor bene- (optional service, etc.) and fit contributions, you waive all rights to your bene- • provide proof of dependency. ficiaries’ receiving survivor benefits. However, your Once you have selected a dependent beneficiary to remaining accumulated retirement contributions, if receive the reversionary annuity, the selection cannot any, still remain payable to your beneficiaries upon be changed and there is no continuing requirement your death. The survivor benefit refund may be repaid that a dependent relationship exist between you and with interest if you return to teaching and earn one the beneficiary. In other words, whether or not the year of creditable service. beneficiary is dependent on you at the time of your Application procedure death has no bearing on his or her eligibility to receive When you are applying for retirement or at anytime the reversionary annuity. thereafter, you may request a Refund of Survivor Election of a reversionary annuity is irrevocable. Benefit Contributions Application form from us. However, if your designated beneficiary predeceases However, the form will not be sent until the pro- you and you send us a certified copy of the death cer- cessing of your retirement is complete. Return your tificate, we will reinstate your retirement annuity to completed form to our Springfield office. Within six the full amount on the first day of the month after we weeks after we receive your completed application, receive your beneficiary’s death certificate. You will we will process your refund and will forward it to the not receive any retroactive adjustments. Office of the Comptroller for payment. Single-sum retirement benefit Impact on Social Security If you have fewer than five years of creditable service, If you qualify to receive a single-sum retirement you are eligible to receive a single-sum retirement benefit or take a refund from TRS instead of a benefit at age 65. The benefit is the actuarial equiva- monthly benefit, you may wish to ask if your Social lent of a retirement annuity consisting of 1.67 percent Security benefits will be reduced. For Social Security of your final average salary for each year of credit- information, you may call (800) 772-1213 or visit able service. To be eligible for this benefit, you must http://www.socialsecurity.gov online.

17 Chapter 9:

Reciprocal Service

If you have service in more than one public retirement system in Illinois, you may qualify for enhanced retirement and survivor benefits by selecting a reciprocal retirement. Reciprocity offers the following advantages: Members wishing to select reciprocity must apply • Service credit in any of the reciprocal systems to each retirement system. The systems will then may be used to meet service qualification require- exchange information in order to determine the ben- ments for a pension. efits payable. When payments begin, you will receive separate checks from each system. The use of reci- • The highest final average salary earned is used procity is entirely voluntary. by each of the reciprocal systems to calculate the retirement benefit. This practice usually results in If you are within five years of retirement, you may a higher benefit. receive a reciprocal benefit estimate by contact- ing your current retirement system. That system will • Members may reinstate refunded service at a gather information from the other reciprocal systems reciprocal system once they have established two and provide you with a consolidated estimate. years service credit at another reciprocal system. In addition to TRS, systems under the Illinois You must have at least one year of service credit in Retirement Systems Reciprocal Act include: any system you wish to use for reciprocity. The one exception to this rule is if you participated in IMRF • County Employees’ Annuity and Benefit Fund of as a teacher aide and earned less than 12 months of Cook County, IMRF service credit, and were next employed in a • Forest Preserve District Employees’ Annuity and position covered by TRS. If this applies, you may apply Benefit Fund of Cook County, your IMRF service toward a reciprocal pension even • General Assembly Retirement System, though it does not meet the 12-month requirement. • Illinois Municipal Retirement Fund, You cannot use credit from another system if you have taken a refund or if the credit has already been • Judges’ Retirement System of Illinois, applied to a pension. If you previously took a refund • Laborers’ Annuity and Benefit Fund of Chicago, from a reciprocal system, contact the system to • Metropolitan Water Reclamation District determine if you may repay the refund you received. Retirement Fund, To retire with reciprocity, your total years of recipro- • Municipal Employees’ Annuity and Benefit Fund cal service must equal the minimum qualifying period of Chicago, under each system to be eligible for retirement. • Park Employees’ Annuity and Benefit Fund If the service periods overlap, the reciprocal benefits of Chicago, will be adjusted proportionately. Members who have • Public School Teachers’ Pension and Retirement significant amounts of overlapping service may want Fund of Chicago, to consider retiring independently under each system rather than using the reciprocal act. • State Employees’ Retirement System of Illinois, and Reciprocity applies only to retirement and survivor benefits. In most cases, it cannot be used for disabil- • State Universities Retirement System of Illinois. ity and insurance purposes.

18 Chapter 10: Applying for and Receiving Retirement Benefits

This is an exciting time for you. Your teaching career is almost complete. You have new experiences waiting.

The retirement process begins with you contacting This notification will contain your member ID to cre- us about your plan to retire and ends approximately ate an online account in the secure member area if 60 to 90 days after your retirement date when you you haven’t already established one. You will need receive your first annuity payment. your member ID, Social Security number and your birth date to set up your account. Once you are in the Personalized retirement interview secure area online, you may view your monthly annu- When you plan to retire, you should contact us ity checks and year-end statement. approximately three to four months before your The Office of the Comptroller mails payments on the retirement date. Simply call 877-927-5877 (877-9-ASK- last working day of each month. The payment you TRS) and we will outline your options, after which receive on the first day of the month represents the you will receive a personalized set of forms to review annuity you earned for the preceding month. Please and sign. During your interview, we will discuss any notify us if your payment has not arrived after 30 days optional service or credit under reciprocal systems, from the issue date. enrolling in the Teachers’ Retirement Insurance Program, and signing up for direct deposit. To protect our annuitants, we have the right to sus- pend retirement annuities if two pay­ments remain An online Tier II personalized retirement interview uncashed. Once we learn the circumstances behind will be available in the future. the uncashed payments, we will mail the suspended Effective date of retirement payments to the annuitant. Once you meet the eligibility requirements (see Direct deposit Chapter 8: “Retirement Benefits”), your retirement Annuitants, beneficiaries, and disability recipients annuity will begin on the later of: are encouraged to have payments electronically • the day following the last day for which you earn deposited into a bank or other financial institution.­ salary that counts toward retirement, or Direct deposit is a safe and convenient way to ensure • the day on which you attain the minimum that your payments are received automatically qualifying age. each month. Annuity payments To authorize direct deposit of benefit payments, you and your financial institution must complete and sign You will receive your first annuity payment approxi- the Depository Agreement for TRS Benefit Payments mately 60 to 90 days after we receive a signed appli- form. Please return the agreement form no later than cation form, any remaining payments due from the 15th day of the month. Your next check will be you, and the Supplementary Report and Sick Leave mailed directly to your home address. In following Certification forms from your employer. months, your payment will be directly deposited into A notification of first payment letter will be mailed to your account on the first banking day of each month. you when your retirement paperwork is completed. You will not receive a monthly statement from TRS.

19 Chapter 11:

Post-Retirement Matters Annuitants will want to be aware of special issues, such as health insurance, automatic annuity increases, post-retirement employment limitations, and re-entry into active membership.

Health insurance for benefit options under the State of Illinois Group In addition to current participants, enrollment in the Insurance Plan. At retirement, we will send informa- Teachers’ Retirement Insurance Program (TRIP) is tion to members who qualify for the plan. open to: Annual increases in annuity • any member who has eight or more years of TRS Annual cost-of-living increases for members will be service credit and is receiving a monthly retire- calculated using either 3 percent or one-half of the ment benefit; Consumer Price Index as of the preceding September, • any beneficiary who is receiving a monthly sur- whichever is less, of the originally granted retire- vivor benefit from a member who had eight or ment annuity. If the increase in the Consumer Price more years of service credit; or Index for the preceding September is zero or there • any member who is receiving a disability benefit, is a decrease, then the annuity will not be increased. regardless of the years of service credit. When there is an increase, it will not be compounded. TRIP is a comprehensive program of quality health- You will receive an annual increase on the Jan. 1 occur- care coverage for retired teachers and their eligible ring either on or after the attainment of age 67 or the dependents. TRS’s role is to provide members with first anniversary of the annuity start date, whichever basic coverage information, enroll them in the pro- is later. The increase is effective in January of each gram, and collect the appropriate premiums. The year and is reflected in the payment you receive in State of Illinois Department of Central Management February. This increases your monthly benefit and is Services (CMS) determines coverage benefits, estab- not a separate lump-sum payment. lishes premiums, negotiates contracts with the Some annuitants may receive increases in their annui- insurance carriers, and resolves coverage and claim ties prior to the initial post-retirement increase due to issues. CMS administers TRIP as set forth in the State minimum annuity legislation. If you are affected, we Employees Group Insurance Act of 1971. will notify you. No TRS monies are used to fund TRIP. Employment limitations for annuitants There are four times when you may enroll in TRIP: While you are receiving a retirement annuity, cer- • when you apply for monthly retirement benefits tain restrictions apply regarding employment you or disability benefits, may accept, the types of positions in which you may • when you turn age 65 or become eligible be employed, and the number of days and hours you for Medicare, may work. • when coverage by a former group plan is involun- Limits that begin on your first day of retirement tarily terminated, or The law suspends your retirement benefits if you • during the annual Benefit Choice Period. accept full-time employment in a position covered by another state of Illinois pension system that has recip- Enrollment information, including premiums and a rocal rights with TRS. summary of benefits, is provided in our TRIP Summary publication that is available through our website. If you first became a Tier 2 member on or after January 1, 2012, the law suspends your retirement TRS members with at least five years of service with benefit if you accept a contractual position from a qualified state of Illinois agency may be eligible 20 to notify TRS and your contractual employer about spent on administrative duties, such as attendance at your retirement status prior to accepting contractual board meetings and contract negotiations. employment may result in a Class A misdemeanor and Extra duties that do not require teacher licensure are a fine of $1,000. not subject to the 120 days/600 hours post-retirement Limits in first year of retirement employment limitation. Once you are retired, you may not resume employ- A person who received a single-sum retirement bene- ment in a TRS-covered position, including substitute fit is not subject to these limits. and summer school teaching, in the same school year in which you last contributed to TRS. The school year Exceeding the limitations If you exceed the employment limitations during any is July 1 through June 30. school year, Therefore, if you retire during the school year, you • we must be notified, may teach summer school following retirement only if your first day of service is after June 30. In addition, • your retirement annuity will be suspended, you must wait 30 days from the effective date of your • you will re-enter active membership, and resignation before performing any post-retirement • your employer must remit TRS contributions on teaching for the same employer. all creditable earnings after the employment limi- Limits after first year of retirement tations are exceeded. 120 days/600 hours limitation There are two circumstances where you will be Following the school year in which you last contrib- required to repay all annuity payments in full from the uted to TRS, you may be employed in a TRS-covered date of retirement: position for up to 120 paid days or 600 paid hours per • if you resume teaching in the same school year in school year and still receive a retirement annuity. The which you retired, or 120 days/600 hours limit is in effect through June 30, 2021. • if you exceed the employment limitations in the first school year following retirement. State law does not allow optional TRS participation. You may not avoid TRS reporting by calling yourself Re-entry into active membership an independent contractor, vendor or consultant. As an annuitant, the only way you can re-enter active If you work only full days (five or more hours per day), membership is: each day is counted toward the 120 days limitation. If • to teach in a TRS-covered position in the same you work all partial days (fewer than five hours) or a school year in you last contributed to TRS, or combination of full and partial days, the time worked • to teach beyond the which 120 days/600 hours is counted toward the 600 hours limitation. Each limitation. full day (five or more hours) is counted as five hours, even if you actually worked more than five hours on If you resume active TRS member status, that date. For partial days, the actual number of clock • contributions are required on all creditable hours worked is counted. For example, if you worked earnings, and on two days during a given week, three hours on • you are required to send us a new age retire- Tuesday and seven hours on Thursday, a total of eight ment annuity application form when you file for hours (three for Tuesday and five for Thursday) would retirement again. be counted toward the 600 hours limitation. It is your If your second retirement date occurs in less than one responsibility to keep a record of your hours worked year, your retirement is reinstated. If it follows com- to ensure you do not exceed the limitation. pletion of at least one year but less than three years Only work that requires teacher licensure (including of creditable service, your annuity will be recomputed summer-school and substitute teaching) is subject to using the law in effect on your first retirement date. the 120 days/600 hours post-retirement employment If at least three years of creditable service have been limitation. All time that a teacher or administrator is established after you re-enter active membership, required to be present for licensed duties is subject to your annuity will be recomputed based on current the limitation. This includes preparation periods and law, including any legislation that changed benefits time before, between, and after classes. For admin- while you were in retirement the first time. istrators, this includes all time that is required to be

21 Chapter 12: Medicare and Social Security

We will not reduce your TRS benefit because of any Social Security benefit you may receive.

Medicare accumulate credit under Social Security through other All public employees are required to make con­ employment that is not covered by TRS. tributions toward Medicare coverage. Persons who Annuitants who return to teaching do not contribute change employers are also subject to the Medicare to Social Security. tax. Currently, these individuals and their employers You may sign up to get your Social Security Statement each contribute 1.45 percent of salary to Medicare. online at http://www.socialsecurity.gov. TRS annuitants with 40 credits of coverage under The statement provides you with an earnings history Social Security will receive free Medicare Part A (hos- under Social Security, the number of credits you have pital insurance) coverage at age 65. A TRS annuitant earned, and an estimate of benefits you will receive may also obtain free Medicare Part A coverage as the (provided you have earned sufficient credits of cover- result of paying the Medicare tax on covered employ- age), excluding any offsets that may be applied. ment. In addition, a TRS annuitant may have Medicare hospital coverage at age 65 if his or her spouse has Social Security benefit reductions worked in Social Security-covered employment at Two provisions may cause a reduction in your Social least 40 credits and if the spouse is at least age 62. Security benefits: the Windfall Elimination Provision If you are a widow or widower of a Social Security- and the Government Pension Offset. Only the Social covered spouse, you are eligible for Medicare Part Security Administration can provide information on A at age 65. Please contact Social Security to verify the actual amount of the reduction. We will not reduce your eligibility. your TRS benefit because of Social Security benefits If you do not qualify for free Medicare coverage, you receive. you can purchase Medicare Part A coverage through Windfall Elimination Provision monthly premium payments. Medicare Part B (med- As a TRS member, you do not pay Social Security ical insurance) is optional and must be purchased tax on your earnings. In 1983, Congress enacted leg- separately from Social Security through monthly islation that would prevent those members who premium payments. Annuitants must have both earned Social Security credits through supplemen- Medicare Parts A and B to enroll in the TRIP Medicare tal income from receiving a full Social Security ben- Supplement. For information about Medicare Part D, efit. Social Security includes a formula that grants please contact Social Security. lower-paid workers a higher percentage return than For additional information, read Social Security their more highly compensated counterparts. Prior to Publication CMS-10050, Medicare & You at: congressional enactment of the Windfall Elimination http://www.socialsecurity.gov/pubs/EN-05-10043.pdf. Provision, Social Security benefits were computed as Premium rate information is also available on if TRS members were long-term, low-wage earners, the website. resulting in a higher percentage Social Security bene- fit in addition to their TRS pension. The modified for- Social Security mula eliminates this “windfall.” Active TRS members do not contribute to the retire- In addition, the effects of the Windfall Elimination ment and disability program under Social Security Provision are moderated if you had more on their TRS-covered earnings. However, they may than 20 years of “substantial” Social Security

22 employment and are eliminated after 30 years of Security benefits of their own and were, therefore, “substantial” employment. financially dependent on a spouse’s Social Security For additional information online, see Publication coverage. Before the offset was enacted, many TRS 05-10045, The Windfall Elimination Provision online at members qualified for a pension from TRS and from http://www.socialsecurity.gov/pubs/EN-05-10045.pdf. Social Security, even though they were not financially dependent on their spouses. Government Pension Offset If you qualify to receive a single-sum retirement ben- This spousal offset also affects the Social Security efit or take a refund from TRS instead of a monthly benefits for those who receive spousal or widow’s benefit, you may wish to ask if your Social Security benefits. The spousal benefit was designed to pro- benefits will be reduced. vide security to spouses who had little or no Social

23 Chapter 13:

Disability Benefits

If you become ill or injured, TRS can help.

Nonoccupational and occupational disability benefits request a disability application packet. Your request are available to you when you are unable to work. should include your: If you are receiving nonoccupational or occupational • name, disability benefits or a disability retirement annuity, • TRS Member ID or the last four digits of your you may be gainfully employed within certain limits Social Security number, detailed in this chapter. You do not need to resign to • current mailing address, become eligible for nonoccupational or occupational • email address, disability benefits. Members also accrue service credit • phone number, while receiving both types of benefits. • type of disability and due date if pregnant, Disability payments may be electronically deposited. • last day worked (or will work), and the last day See “Direct Deposit” in Chapter 10. that paid or unpaid sick, personal and/or vacation Nonoccupational disability benefits leave days are exhausted. Eligibility Forms must be completed by you, your current If you are a full-time teacher, you must have three employer, and two state-licensed physicians (one phy- years of service credit, have be­come disabled while sician in cases of pregnancy).­ The physicians’ reports teaching (or within 90 days of teaching), and use all must be based on examinations that occurred within accumulated sick, personal and vacation leave days to 90 days of your last day of teaching. qualify for nonoccupational disability benefits. When an individual is employed under an agreement If you are a part-time or substitute teacher, you are for fewer than 12 full months, neither the 31-day eligible for disability benefits if you have three years requirement nor the sick leave utilization require- of service credit and have worked as a teacher for at ment is satisfied during periods not covered by least 340 hours in either the school year in which the the agreement. disability occurs or the preceding school year. Your Applying if time elapsed since you last worked disability must have occurred within 90 days of your You must exhaust your employer-granted sick, per- last day of teaching. sonal and vacation leave days before receiving a Service credit under the State Employees’ Retirement disability benefit. However, your disability eligibility System of Il­linois (SERS), the State Universities is still dependent on providing evidence of disability Retirement System (SURS), and the Illinois Municipal as determined by physician exams conducted within Retirement Fund (IMRF) count toward your eligibil- 90 days of your last day of active teaching and subse- ity for a disability benefit and the total period during quent annual exams if one year or more passes before which the disability benefit is payable unless such ser- you apply for TRS disability benefits. One physician is vice is concurrent with your TRS service. required for pregnancy and all other reasons require two physician examinations throughout the duration. Application procedures Approximately one month before your accumulated sick leave expires, you must notify us in writing and

24 Effective date Member files written notice of disability within 90 days from the later of commencement of disability or the date eligibility for salary ceases*.

Yes No TRS receives all documentation within six months from TRS receives all documentation within six months of the later of the commencement of disability or eligibility written notice of disability. for salary ceases. Yes No Yes No Benefits become payable Benefits become pay- Benefits become pay- Benefits become pay- from the later of the 31st able on the date TRS able on the date TRS able on the date TRS calendar day the member receives all documenta- receives written notice receives all documenta- is absent from teaching tion required by law. of disability. tion required by law. due to the disability for which benefits are sought * Eligibility for salary ceases is equal to the later of the date last worked plus 31 days or when sick, personal or exhaustion of the and/or vacation leave days are completely exhausted. member’s sick leave**. ** If sick leave is not paid by the employer, the date that sick, personal and/or vacation leave would have been exhausted had the member been paid by the employer.

Benefit amount Duration of benefits Your nonoccupational disability benefit is equal to Nonoccupational benefits cease if you: 40 percent of the greater of the contract rate report- • resume teaching (See “Law allows limited, part- able to TRS in effect at the time the benefit becomes time teaching.”); payable or the contract rate reportable to TRS on the • engage in or are able to engage in gainful date your disability began. If you are a noncontractual employment; teacher, we use an annualized salary rate based on your actual earnings to determine your benefit. • are no longer disabled; Annual increases • have received benefits for a period equal to one- fourth of your service credit; On Jan. 1 following the fourth anniversary of the effective date of the nonoccupational disability ben- • request termination of the benefit; or efit, the monthly benefit will increase 7 percent. • become eligible and apply for a disability or age Thereafter, the monthly benefit will increase by 3 per- retirement annuity. cent or ½ the annual unadjusted percentage increase Temporary disability benefits due to pregnancy (but not less than zero) in the Consumer Price Index - U expire six weeks following a normal delivery, or eight (CPI-U), whichever is less, of the originally granted dis- weeks following a Cesarean delivery. However, if com- ability benefit. The CPI-U is for the 12-month period plications arise during pregnancy or delivery, the dis- ending with September preceding each Nov. 1. ability period may be extended. With the submission Employment limitations of appropriate medical documentation, the member As a recipient of a disability benefit, you are prohib- may remain on disability until she no longer qualifies ited from teaching in any capacity and from gain- for benefits. ful employment. “Gainful employment” is defined as If a disability benefit is discontinued because you earning more than $10,000 per year or the propor- resume teaching in a non TRS-covered position or are tional ratio if less than a calendar year while in receipt otherwise gainfully employed and you are disabled of a disability or occupational disability benefit. again due to the same cause within 90 days, the ben- If you exceeded the earnings limitation of $10,000 per efit will resume at the previous rate once we receive calendar year or the proportional ratio if less than a written notification and verification of your disability calendar year, your disability benefits will be termi- and you are no longer receiving salary. nated. You will be required to repay TRS any disability You may be eligible to transfer from a nonoccupa- benefits you receive after the termination date if your tional disability benefit to a disability retirement benefit is terminated. annuity or an age retirement annuity. The effective

25 date of the retirement annuity is the first day of should retain all pay stubs or be able to provide detailed the month after we receive your disability retire- benefit payment records. TRS may be able to grant ser- ment annuity application form or age retirement vice credit for members on workers’ compensation annuity application form. Please refer to Chapter 8: who do not earn a full year of service credit in the year “Retirement Benefits” and, in this chapter, “Disability workers’ compensation benefits were received. Retirement Annuity” eligibility requirements. Application procedures Occupational disability benefits To receive a benefit, notify us in writing that you are seeking an occupational disability benefit and request Eligibility a disability application packet. We will require ver- No minimum service requirement must be met before ification that the disability was duty-related from you are eligible to receive occupational dis­ability ben- you, your employer, and two state-licensed physi- efits. However, you must be working in a TRS-covered cians. Each physician’s report must be based on an position and have been disabled due to a duty-related examination that occurred within 90 days of your injury or ill­ness as determined by the Illinois Workers’ last day of teaching. In addition, we must receive a Compensation Commission or your employer’s work- copy of the final settlement from the Illinois Workers’ ers’ compensation insurance carrier to be eligible for Compensation Commission or the insurance­ carrier this benefit. If you are a part-time or substitute teacher, with which your employer has a workers’ compen- you are also eligible for occupational disability benefits. sation policy with a finding that the disability was Members who are receiving payments from their employment-related. employer’s workers’ compensation insurance company Effective date

Member files written notice of disability within 90 days from the later of commence- ment of disability or the last day for which salary was paid. Yes No TRS receives all documentation within six months TRS receives all documentation within six months of from the later of the commencement of disability or written notice of disability. the last day for which salary is paid. Yes No Yes No Benefits become pay- Benefits become pay- Benefits become pay- Benefits become pay- able on the date after able on the date TRS able on the date TRS able on the date TRS the last day for which receives all documenta- receives written notice receives all documenta- salary is paid. tion required by law. of disability. tion required by law.

Benefit amount - U (CPI-U), whichever is less, of the originally granted Your occupational disability benefit is equal to disability benefit. The CPI-U is for the 12-month period 60 percent of the greater of the contract rate in ending with September preceding each Nov. 1. effect at the time the benefit becomes payable or the Employment limitations contract rate on the date your disability began. This As a recipient of a disability benefit, you are prohib- benefit is reduced by any amounts you receive under ited from teaching in any capacity and gainful employ- workers’ compensation. Once workers’ compensation ment. “Gainful employment” is defined as earning benefits expire, we will pay the full 60 percent if you more than $10,000 per year or the proportional ratio remain eligible for the benefit. if less than a calendar year while in receipt of a disabil- Annual increases ity or occupational disability benefit. On Jan. 1 following the fourth anniversary of the If you exceeded the earnings limitation of $10,000 per effective date of the occupational disability ben- calendar year or the proportional ratio if less than a efit, the monthly benefit will increase 7 percent. calendar year, your disability benefits will be termi- Thereafter, the monthly benefit will increase by 3 per- nated. You will be required to repay TRS any disability cent or ½ the annual unadjusted percentage increase benefits you receive after the termination date if your (but not less than zero) in the Consumer Price Index benefit is terminated. 26 Duration of benefits Effective date Occupational disability benefits cease when you: The disability retirement annuity is effective: • resume teaching (See “Law allows limited, part- • the day following the last day for which disability time teaching.”); benefits are payable or • engage in or are able to engage in gainful • the first of the month after we receive your employment; completed disability retirement annuity • are no longer disabled; application form. • request termination of the benefit; or Benefit amount • become eligible and apply for an age retire- Your disability retirement annuity is the greater of: ment annuity. • 35 percent of the greater of your last annual con- If the disability benefit is discontinued because you tract salary or your annual contract rate on the resume teaching in a non TRS-covered position or are date your disability began (we use an annual- otherwise gainfully employed and you are disabled ized salary rate based on actual earnings for again due to the same cause within 90 days, the ben- noncontractual teachers); efit will resume at the previous rate once we receive • the amount computed by the retirement formula written notification and verification of your disability reduced by 0.50 percent for each month you are and you are no longer receiving salary. under age 67 with less than 10 years of service You may be eligible to transfer from an occupational credit; or disability benefit to an age retirement annuity if you • the amount computed by the retirement formula meet age and service credit requirements. The effec- reduced by the 0.50 percent for each month you tive date of the retirement annuity is the first day of are under age 62 with 10 years of service credit; or the month after we receive your age retirement annu- • the amount computed by the retirement formula ity application form. (See Chapter 8: “Retirement with no reduction if you are age 62 or older with Benefits,” for the eligibility requirements for an age at least 10 years of service credit. retirement annuity.) Your initial benefit will be increased by the amount You may choose to take a nonoccupational bene- of any annual in­creases that you have been granted fit even if you have an employment-related disability. while you were receiving a nonoccupational This election cannot be changed at a later date. disability benefit. Disability retirement annuity Employment limitations Eligibility While you are receiving a disability retirement annu- If you remain disabled after the nonoccupational ity, you may not be employed by any other public or disability benefit eligibility period has expired, you private school, college, or university in a teaching are eligible for either a disability retirement annu- position, including subbing. ity or a standard age retirement annuity (if you meet However, gainful employment in any area other than the age and service credit requirements). You may teaching is permitted or in any area of TRS-covered switch to either a disability retirement annuity or a or SURS-covered employment as indicated under standard age retirement annuity (if you meet the “Law allows limited, part-time teaching.” The com- requirements) at any time while you are receiving a bined income from the disability retirement annuity nonoccupational disability benefit. (See Chapter 8: and the earnings from the nonteaching occupation “Retirement Benefits” for information about an age cannot exceed the salary rate upon which the annuity retirement annuity.) No service credit is earned while was based. If you have earnings above this limit, your you are receiving a disability retirement annuity. disability retirement annuity may be reduced or sus- pended. If your earnings from a nonteaching occupa- Application procedures tion exceed the salary rate upon which your disability When the eligibility period for nonoccupational dis- retirement annuity benefit was based, your bene- ability benefits is due to expire, we will notify you. fit will be terminated including Teachers’ Retirement Before the benefit expires, you may either send us Insurance Program (TRIP) insurance. a letter or call us to request a transfer to a disability retirement annuity or an age retirement annuity. 27 For those returning to employment in any area other On a limited basis, you may substitute or part-time than teaching, the salary rate for purposes of this teach for a TRS-covered or SURS-covered employer calculation will increase 15 percent after you have without loss of your disability benefit. Your combined received a disability retirement annuity for 10 years. earnings from your teaching and your disability bene- fit cannot exceed 100 percent of the salary rate upon Duration of benefits which the benefit was based under the limited, part- The disability retirement annuity will continue until: time teaching law. • your disability ceases, or For those returning to teaching with a TRS-covered or • you resume teaching (See “Law allows limited, SURS-covered employer under the limited, part-time part-time teaching.”), or teaching law, the salary rate for purposes of this cal- • you are eligible and ap­ply for an age retire- culation will not increase 15 percent after receiving a ment annuity. disability retirement annuity for 10 years. If you resume teaching in a non TRS-covered position If you exceed the salary rate upon which your benefit after receiving a disability retirement annuity and are was based, your benefit will cease including Teachers’ disabled again for the same cause within 90 days, the Retirement Insurance Program (TRIP) insurance. benefit will be reinstated at the previous rate after You may not teach for any employers not covered by we receive your completed disability benefit appli- TRS or SURS. This includes substitute work. cation form and required medical documentation. Part-time is defined as “employed for fewer than In this case, benefits will begin the day following the four clock hours per day or fewer than five days last day for which you are paid by your employer. per week.” Annual increases If you plan to return to teaching on a limited basis, • disability benefit was granted or you must contact us to request a Limited Return to • the date you turn 67 or your first anniversary in Work Program Certification form. This form must be retirement, whichever is later. completed and returned to us prior to your return to If the first annual increase follows the fourth anniver- teaching. We will acknowledge receipt of the form sary of the date the disability benefit was granted, and confirm your eligibility. the increase will be 7 percent of the original annuity. This law applies to all members receiving nonoccupa- If the first annual increase is due to the attainment tional disability benefits, occupational disability bene- of age 67 or the first anniversary in retirement, the fits, and disability retirement annuities. amount will increase by 3 percent or ½ the annual Medical examinations unadjusted percentage increase (but not less than zero) in the Consumer Price Index - U (CPI-U), which- To substantiate your continued eligibility for any type ever is less, of the originally granted disability bene- of disability benefits, we may require­ additional med- fit. The CPI-U is for the 12-month period ending with ical examinations and request medical and other September preceding each Nov. 1 records. The fre­quency of re-examination is governed by individual circumstances; however, you must have After the initial increase, the annuity will increase medical examinations at least once a year while you by 3 percent or ½ the annual unadjusted percent- are receiving nonoccupational or occupational dis- age increase (but not less than zero) in the Consumer ability benefits. If you are receiving a disability retire- Price Index - U (CPI-U), whichever is less, of the orig- ment annuity, periodic medical examinations may inally granted disability benefit. The CPI-U is for the be required. If you do not submit to medical exami- 12-month period ending with September preceding nations or provide the necessary information, your each Nov. 1. benefits will be discontinued, including insurance, if Law allows limited, part-time teaching applicable, until you consent to the examination. If The law allows individuals who have received TRS your refusal continues for one year, all rights to your disability benefits for one year or more to return to annuity will be revoked. teaching if their medical conditions improve, allowing part-time work.

28 Chapter 14:

Death Benefits

You can take comfort in knowing that your benefits will help take care of your family after your death.

We provide two types of death benefits: a beneficiary disability and claimed as a dependent on your refund, which consists of any remaining accumulated final federal income tax return; or contributions, and survivor benefits. • a dependent parent who received at least half Each benefit may be paid to separate beneficiaries or of his or her sup­port from you for the 12-month both benefits may be paid to the same beneficiaries. period immediately prior to your death. The type of benefit for which beneficiaries are eli- For an adopted child to be an eligible dependent ben- gible is determined by their status at the time of eficiary, the adoption proceedings must have been your death. Effective June 1, 2011, Illinois law enti- finalized prior to the member’s death and while tles a party to a civil union to the same legal obli- the child was a minor. For purposes of determining gations, responsibilities, protections, and benefits dependency, “disability” is defined as an inability to as are afforded or recognized by the law of Illinois engage in any substantial gainful activity by reason of to spouses. A dependent beneficiary may choose any medically determinable physical or mental impair- between a lump-sum payment or monthly benefits. A ment that can be expected to last for a continuous nondependent beneficiary receives a lump-sum pay- period of 12 months or more. ment. If we do not have a Member Information and Children, unless named as a beneficiary on the MIBD Beneficiary Designation (MIBD) form on file for you, form, are only eligible for benefits if they are the death benefits are distributed as follows: children of the surviving parent who will receive • a beneficiary refund is paid to your surviving monthly benefits. In the case of a divorce, if the mem- spouse or civil union partner, or if there is not ber names the new spouse or civil union partner one, to your estate; and and had children with the prior spouse or civil union • survivor benefits are paid to an eligible depen- partner, those children are not eligible for monthly dent beneficiary, or if there is not one, to survivor benefits. your estate. A parent may be an eligible dependent beneficiary only if there is no other dependent beneficiary. Types of beneficiaries A nondependent beneficiary is any other designated A dependent beneficiary is person or entity that is not a dependent beneficiary. • a spouse to whom you have been married for at You may designate a primary beneficiary on the MIBD least one year, except where a child is born of form to receive survivor benefits. If this individual is the marriage in which case the one-year period is a de­pendent beneficiary, he or she may select either not applicable; monthly benefits or a lump-sum benefit. Only a lump- • a civil union partner to whom you have been part- sum benefit is payable if you designate both a depen- nered for at least one year; dent and a nondependent primary beneficiary. • an unmarried natural or adopted child un­der age Alternate beneficiaries named on your MIBD form will 18, or between ages 18 and 22 if he or she is a full- receive benefits only if all designated primary ben- time student in an accredited educational insti- eficiaries are deceased. If your beneficiary designa- tution, or an unmarried child of any age who tion includes more than one person, the benefits are is dependent by reason of a physical or mental divided equally among the living beneficiaries of that class (primary or alternate).

29 The automatic designation option on the MIBD • while you are an inactive member and you have form is an alternative to naming specific individuals. 20 or more years of service. For the purpose of Automatic designation names all eligible dependents determining eligibility for a benefit, service credit as beneficiaries. If no dependent beneficiaries sur- under the State Employees’ Retirement System of vive, the benefits are paid to your estate. Illinois, the State Universities Retirement System, and the Public School Teachers’ Pension and Designating a trust Retirement Fund of Chicago is considered. A trust can receive monthly survivor benefits on behalf of a minor child or a disabled dependent ben- Nondependent beneficiaries are not eligible for eficiary. A trust cannot receive monthly survivor monthly survivor benefits. benefits on behalf of an adult dependent who is Dependent beneficiaries are eligible for monthly sur- not disabled. vivor benefits if: To pay a monthly survivor benefit to a trust, the fol- • you had 1.5 years of TRS service credit; and lowing language is required in the trust. • you had at least 60 days of creditable service dur- “The trust is authorized to receive TRS ing the 18 months preceding your death. monthly survivor benefits on behalf of (insert beneficiary name). The trustee will use the When Survivor Benefits Begin for Dependents monthly TRS survivor benefit solely for the Member status at time of death care and benefit of (beneficiary name) and will not divert (beneficiary name)’s benefits to Active or Dependents Inactive Annuitant* some other purpose inconsistent with Article First of 1 or Article 16 of the Illinois Pension Code.” Spouse/civil union partner On the the month with minor children or spouse/ date of following Beneficiary Refund civil union partner age 50 or member’s the date of Accumulated contributions are refunded as a lump- dependent parent age 55 death member’s sum payment. death If you are an active or an inactive member, your bene- Spouse/civil union partner not When spouse/civil union ficiaries will receive a return of all of your retirement age 50 at time of member’s partner turns age 50 if death married at least one year contributions, plus interest, and the portion paid Dependent parent not age 55 at When parent turns age towards the annual increase in annuity. Refer to your time of member’s death 55 TRS Benefits Report for the contributions and inter- * Retirement annuity is payable through the month of the est that are refundable after your death. member’s death. If you are an annuitant, your beneficiaries will receive Duration of monthly benefits excess accumulated contributions minus the amount Monthly survivor benefits will continue for the life you received as a retirement annuity. of your spouse or civil union partner. A minor child will receive benefits until he or she reaches age 18 (or Survivor benefits age 22 if he or she is a full-time student), marries, or Two types of survivor benefits exist: lump-sum dies, whichever is earlier. An adult child who is depen- and monthly. dent by reason of a physical or mental disability may Eligibility receive monthly survivor benefits for his or her life- Nondependent and dependent beneficiaries are time if: eligible for a lump-sum survivor benefit if your • he or she does not marry; death occurs: • he or she is not capable of substantial gainful • while you are an annuitant; employment; and • while you are employed as a teacher; • we periodically receive a physician certification • within the first 12 months following your last day verifying his or her continuing disability. of earnings as a teacher; Survivor benefits are payable through the end of the • while you are on an approved leave of absence; month in which the beneficiary’s death occurs. No • while you are receiving a nonoccupational or an further benefits are payable. occupa­tional disability benefit; or 30 Annual increases in benefits death occurs. The final payment to a deceased annu- Recipients of monthly survivor benefits are eligible itant would be issued the first of the month follow- for the lesser of 3 percent or ½ of the annual increase ing the date of death. Any payments issued to the in the Consumer Price Index of the originally granted annuitant beyond the final payment must be returned survivor’s annuity. If the increase in the Consumer to TRS. Price Index for the preceding calendar year is zero or there is a decrease, then the annuity will not be Determining survivor benefits increased. The benefit will be distributed as follows: TRS disbursements are not subject to Illinois indi- vidual income taxes. However, they are subject to • For beneficiaries of annuitants, benefit increases federal taxes (with the exception of occupational are applied on Jan. 1 after the survivor benefit has disability benefits). been granted. • For all other beneficiaries, benefit increases are Types of Beneficiaries applied on Jan. 1 following the first anniversary of Non- Time of Death Dependents dependents receiving the sur­vivor benefit. While employed Lump sum up to the Lump sum up Teachers’ Retirement Insurance Program or employed highest salary rate in to the highest (TRIP) coverage within 12 the last four years or salary rate in Dependent insurance coverage is terminated at mid- months of last $1,000 and a monthly the last four 1 night on the day of the member’s death. Dependents day of credit benefit generally years not less than $4002 who are eligible for a monthly survivor benefit may or $600 with minor re-enroll in TRIP and coverage will be reinstated retro- children3 actively to the date of cancellation. Annuitant Lump sum of $3,000 Lump sum of Death notification or inactive or 1/6 of the highest $3,000 or 1/6 of member with 20 salary rate in the last the highest sal- Upon death, a family member should provide the or more years four years4 or $1,000 ary rate in the deceased member’s name, Social Security number, of service 5 and a monthly benefit last four years4 and date of death. We will forward a letter and the generally 66 2/3% of appropriate forms to the member’s designated bene- member’s earned ficiaries for completion. The application requires that benefit at time of beneficiaries provide a certified copy of the member’s death death certificate as well as copies of a marriage or 1 Dependent beneficiaries are eligible for monthly survivor civil union certificate and a birth certificate for a sur- benefits if you had 1.5 years of TRS service credit and at viving spouse or civil union partner. least 60 days of creditable service during the 18 months Dependents may also receive a Survivor Benefits preceding death. Election form to select either a monthly benefit or 2 Certain circumstances might provide a monthly annuity a lump-sum payment. This form will be accompa- less than $400 per month for an active member. nied by information regarding direct deposit of pay- 3 TRS will pay 66 2/3 percent of the member’s earned ments, federal income tax withholding, the Teachers’ retirement annuity at death if it is greater than the Retirement Insurance Program (TRIP), and the tax- above amounts. ability of survivor benefits. Once we receive the 4 Certain lump sums may be greater if the annuitant or completed application and all required documents, inactive member has been in retirement or out of service benefits will be processed and then issued by the for less than five years. Office of the Comptroller. 5 Beneficiaries of inactive members with less than 20 years An annuitant’s retirement benefits are payable of service are not eligible for survivor benefits. through the end of the month in which his or her

31 Chapter 15: Refund of Retirement Contributions

If you cease teaching, you may receive a refund of your retirement contributions.

A refund of contributions should be carefully consid- five years of service credit, you may receive a lump- ered because it terminates your benefits and will be sum retirement benefit at age 65 (see “Single-sum costly to repay if you return to teaching service. Retirement Benefit” in Chapter 8). If you have five or If you terminate teaching with a TRS employer, you more years of service, you may receive a retirement may apply for a refund of your retirement contribu- annuity. (See Chapter 8: “Retirement Benefits.”) tions. This refund consists of the portions used to pay Transfer of credit the retirement annuity and the annual increases in We cannot transfer creditable service directly to a the annuity. retirement system in another state. However, many If you receive a refund of retirement contributions, retirement systems permit the purchase of out-of-sys- you are not entitled to any other refunds. The con- tem service. We will provide the other system with tribution for the Teachers’ Retirement Insurance verification of Illinois teaching service if you accept a Program and the 1 percent survivor benefit contribu- refund and send us a written request. You may then tion are not refundable. make payment for service directly to the other sys- tem if this is required or request a rollover of refund- Refund of retirement contributions able contributions. You may request a refund of your TRS contributions. The amount refunded is at the rate of 8 percent of Application procedure A refund of your TRS contributions can be requested creditable earnings without interest. via email at [email protected]. Eligibility Please include: your full name, current address, con- If you have terminated your teaching duties with tact phone number, the last four digits of your Social a TRS employer, you may apply for a refund of the Security number, last employer(s) and the month and retirement contributions. If you are on sick leave, a year you last worked in a TRS position (or expected if sabbatical leave, or an unpaid leave of absence, or still working). have accepted TRS employment service with a new employer, you are not considered to have terminated TRS will send you the application by regular mail. service and are not eligible for a refund. The application can be returned any time after you have formally resigned from your TRS-covered posi- No hardship loans tion. We will process your refund and forward it to The law prohibits borrowing from your retirement the Office of the Comptroller for payment when four contributions. A loan from TRS is prohibited even if months have passed since your final day of teaching. you are in a state of financial distress. Refunds eligible for rollovers Effect of receiving a refund Payments of refunds for retirement or survivor ben- When you accept a refund, you forfeit all rights to efit contributions may be either made directly to you TRS benefits. If you are considering a refund, you may or directly rolled over to an eligible retirement plan want to contact us for an estimate of potential retire- that you specify. In a direct rollover, the eligible roll- ment and survivor benefits forfeited by accepting the over distribution (the taxable portion) is paid directly refund. If you choose not to receive a refund, your from us to an individual retirement account (IRA) contributions will remain with us and will eventually or another qualified retirement plan that accepts provide a retirement benefit. If you have fewer than rollovers. By using a direct rollover, you avoid a 20 32 percent federal withholding deduction on direct pay- professional tax consultant for details of the tax- ments. Also, if you choose a direct rollover, the distri- ability of refunds. Additional information is also bution is not taxed until it is withdrawn from the IRA contained in Internal Revenue Service Publication or other qualified retirement plan. 575, Pension and Annuity Income online at See “Rollovers” in Chapter 7 for more details about www.irs.gov/file_source/pub/irs-pdf/p575.pdf. eligible plans. Repayment of refunds Taxability of refunds Refunds of retirement contributions may be repaid Refunds are not subject to the Illinois individual with interest from the date of the refund to the date income tax. However, any portion of the refund of the repayment. However, service credit previously attributable to contributions made by either you forfeited may not be used as a basis for payment or your employer that were excluded from taxable of benefits prior to completion of one year of TRS- income in the years the contributions were made is covered service following the refund. subject to federal income tax. If you have resumed service in a reciprocal sys- For tax planning purposes, if your correct and com- tem, the Illinois Retirement Systems Reciprocal Act plete application is received by the close of business requires you to complete two years of creditable ser- on Dec. 5, it will be processed in the current tax year. vice before service credit can be reinstated through If your application is received after Dec. 5, it will be repayment of a refund. processed in the next tax year. Assignment of contributions and loans We will notify you of the taxable portion of your By law, you are protected from creditors placing a lien refund. We also will report the refund payment to the on, garnishing, or confiscating contributions you have Internal Revenue Service on IRS Form 1099-R and will made to TRS. This provision does not extend to fed- send you a copy of this form in January in the year eral tax levies and state of Illinois involuntary with- after the refund is taken. holding. You may not assign your TRS contributions to Special tax consequences and penalties may a creditor or borrow against your account funds. apply to refund payments. You should consult a

33 Chapter 16: Our Website: https://www.trsil.org

We are meeting your needs on the web — 24 hours a day, seven days a week.

Your information source Publications, videos and more are at your fingertips. Web estimates are in exactly the same format as esti- mates received from TRS Counseling Services. If you Read or print out brochures, newsletters and booklets have questions about your web estimate, we can view for your reference under the publications section of your estimate to help you. the Member Services area. We have videos on retire- ment, disability, and death and survivor benefits so Uploading Documents to TRS you can view the information you need at your conve- Birth certificates and all other TRS forms can be com- nience. You’ll also find driving directions, TRS contact pleted and then uploaded directly to the Springfield information and forms. A site search engine will also office. It’s easy do; no stamps or mailing time. help you locate what you need quickly. Uploading is more secure than emailing or sending a document by U.S. mail. This process decreases the TRS also has areas with current information about paper mail that TRS receives daily and must scan by investments, the TRS Board of Trustees, an online hand into the computer system. press room, pension issues, vendor information, TRS careers, general information, and employer services. How to Upload • Login to your member account. Secure Member Account Access • Locate “Member Services” from the choices on Set up your account and you will have access to create the left navigation bar. a personalized benefit estimate; upload documents; view your TRS Benefits Reports; keep your address, • Under “Member Services,” select “Document phone and email information current and complete Upload.” your personal retirement interview at retirement. • Select the specific form name or “Other” and Additional personalized sign-in screens are a secu- complete your upload. rity feature to make it difficult for anyone other than TRS Benefits Report members to log on to the Member Account Access The TRS Benefit Report is available only through area. Immediate access to your user ID and password your online TRS member account. We annually pre- is available with the proper information. For your pro- pare a TRS Benefits Report for each active member. tection, an email is automatically sent to you if any This report will be available in late November and you changes are made to your online account. will be notified via email when it is ready for viewing. If you forget your user ID or password, you will need The statement covers the previous fiscal year, July 1 to know your Member ID to gain access to your through June 30. account. This number has been previously mailed or The statement provides in­formation about service emailed to you. Please call us if you cannot locate it. credit, contributions, and beneficiaries. It also lists Personalized benefit estimate your earnings history and outlines pending and most The calculator will take information from your TRS types of terminated service credit. record and use it to help you estimate your retirement When you receive your statement, review it carefully income. Please have your retirement date, current sal- and con­tact us immediately if you suspect that any ary, projected salary, and eligible sick leave days ready information has been omitted or incorrectly stated. so you can complete the estimate. Additionally, you may want to update your beneficiary

34 designation by filing a new Member Information and will no longer be mailed). Emails are also sent to keep Beneficiary Designation form. you informed of the progress of a retirement bene- Correcting errors fit claim or for the purchase of optional service. We If you have a change to your name, address, birth also occasionally send email notifications to mem- date, or beneficiaries, please call us at 877-927-5877 bers for new web features, legislative changes or TRS (877-9-ASK-TRS). press releases. Your employer provides TRS with the service credit We need your email address and some personal details and earnings information that appears on your state- to match your email address to your TRS record. Send ment. Please discuss any errors with your employer an email to [email protected] with “Add email to before contacting us. record” in the subject line. Next, type your full name, zip code, the last four digits of your Social Security Employers must send us corrections for reporting number, and your email address. We will match your errors that occurred in the last four years. If addi- email address to your record upon receipt. You may tional contributions are due, your employer must pay also submit your email address in the secure Member the amount due; however, your employer may require Account Access area or by calling us. reimbursement from you. Similarly, if contributions have been overpaid, we will issue a refund to your Your email address will always remain confiden- employer who is responsible for providing refunded tial. And, we will never send confidential informa- amounts to you. tion online. You can discontinue receiving the emails at any time. Address and phone updates The contact information we have on file for you Personalized Retirement Interview will be shown on the first screen when you log on Your online Personalized Retirement Interview (PRI) and are accepted into the member area. You may will help you make choices while providing us with the update your address and phone numbers with us information we need to personalize your retirement online. You no longer need to pick up the phone or application forms and ready them for your signature. have to fill out a form to let us know if your contact Please use this online service only when you are within information changes. six months of retirement and know when your last day of work will be or your last paid day. Plan on the pro- Email Notification cess taking 30 minutes. Provide us with your email address to electronically receive the Topics & Report newsletter (a printed copy

35 Chapter 17:

Important Reminders

It is important that you contact us when your mailing address changes and that you periodically review your beneficiary designation.

Mailing address events that may require a beneficiary update include: You should keep a current home address on file marriage, divorce, births, deaths, or dependents with us so that we can mail correspondence and reaching adulthood. other information to the correct location. If your To update your beneficiary designation, you must address changes, please call us at 877-927-5877 complete a new MIBD form. These forms are available (877-9-ASK-TRS) or change it online in the secure from your employer and through our website. Member Account Access area of our website. You can verify your beneficiary designation by call- ing us at 877-927-5877 (877-9-ASK-TRS). If you are Member Information and an active member, your TRS Benefits Report con- Beneficiary Designation tains your designated beneficiaries. Due to confiden- The Member Information and Beneficiary Designation tiality rules, we can provide this information only (MIBD) form allows you to designate beneficiaries to to members. whom death benefits will be distributed. You initially completed this form when you became a TRS mem- Taxability of TRS Benefits ber. For information about the types of beneficiaries TRS disbursements are not subject to Illinois indi- you may designate and the benefits they may receive, vidual income taxes. However, they are subject to see Chapter 14: “Death Benefits.” federal taxes (with the exception of occupational Periodically review your beneficiary designation disability benefits). and be sure to change it whenever necessary. Some

36 Chapter 18:

How to Reach Us

Have a question? We have answers.

EEO/ADA Issues Member Services 217-814-2149 Phone number For Springfield and Lisle: 877-927-5877 [email protected] (877-9-ASK-TRS) Administration Illinois Relay: 800-526-0844 TTY or 711 217-814-2000 Phone hours [email protected] 7:30 a.m. to 4:30 p.m., Monday, Wednesday, Friday; 7:30 a.m. to 5 p.m., Tuesday and Thursday (central Employer Services standard time) 888-678-3675 Email [email protected] [email protected] Investments Fax 217-814-2001 Springfield: 217-787-2269 [email protected] Lisle: 630-505-9607 Teachers’ Retirement Insurance Program (TRIP) Press Contact http://www.MyBenefits.illinois.gov 217-814-2177 MyBenefits Marketplace Service Center: [email protected] 844-251-1777 or 844-251-1778 (TDD/TTY) 8 a.m. – 6 p.m., Monday – Friday (central standard time)

37 Chapter 19:

Springfield Office

2815 West Washington Street Springfield, Illinois 62702-3397

For driving with a GPS From the East - (Urbana/Champaign): Latitude: 39.801371 Take I-72 west to I-55 south. Take I-55 to I-72 west. Take Longitude: -89.706917 I-72 to Exit 93 (Route 4 Springfield/Chatham). Turn right off of the ramp. Continue north on Veterans From the North - (Mason City): Parkway past White Oaks Mall to Washington Street. Take Route 29 south past the airport to Route 4 Turn left on Washington Street. The TRS building is on (Veterans Parkway). Turn right on Veterans Parkway the right. to Washington Street. Turn right on Washington Street. The TRS building is on the right. From the West - (Quincy/Jacksonville) Take I-72 east to Route 4 (Springfield/Chatham exit). From the South - (Alton/Belleville): Turn left. Continue north on Veterans Parkway past Take I-55 north to Interstate 72 west. Take I-72 to Exit White Oaks Mall to Washington Street. Turn left on 93 (Route 4 Springfield/Chatham). Turn right off of Washington Street. The TRS building is on the right. the ramp. Continue north on Veterans Parkway past White Oaks Mall to Washington Street. Turn left on From the North West - (Galesburg) Washington Street. The TRS building is on the right. Take I-74 east toward Peoria. Take exit 101 to merge onto I-155 south toward Lincoln. Merge onto I-55 From the North/North East - south. Take the Sherman exit (105) to business 55 (Peoria/Bloomington/Normal): south. Business 55 becomes IL-4 south (Veterans Take I-55 south to Business 55 (Sherman exit). Take Parkway). Continue south to Washington Street. Turn Business 55 to Veterans Parkway. Continue south- right on Washington Street. The TRS building is on west on Veterans Parkway to Washington Street. the right. Turn right on Washington Street. The TRS building is on the right.

38 Springfield Teachers' Retirement System   To Chicago To Mason City 55 2815 West Washington  29 Veterans Pkwy. Abraham Taintor To Clinton Lincoln  55 4   Capital Airport J. David Jones Pkwy. 54

To Petersburg Browning Peoria Rd.  Sangamon 97 H North Grand To Decatur Madison H Dirksen Pkwy.

Bruns Ln. Jefferson 72 Clearlake Ave. 97 36   Bradforton Washington

Old Jacksonville Rd. Walnut South Grand Monroe To Taylorville 55 Iles Ave.  29 5th St. 6th St.  72 White Chatham Rd. Oaks MacArthur Blvd.  Mall Stanford Ave. Taylor Koke Mill Rd.

Wabash Ave. Pkwy. Veterans Wabash Ave. Adlai Stevenson

55 2nd St. Lake 36    72 Springfield To Jacksonville 72

4 Lake Shore W. Spaulding UIS Orchard Rd. LLCC Toronto Rd. Woodside Rd.

55 Veterans Pkwy. Veterans  To Chatham  To St. Louis  

39 Chapter 20:

Lisle Office

4200 Commerce Court, Suite 101 Lisle, Illinois 60532-3611 For driving with a GPS From Aurora: Latitude: 41.808123 Take the East-West Tollway (I-88) east to the Longitude: -88.107542 Naperville Road exit. This exit brings you to Freedom Drive. Turn left and continue approximately 200 yards From Chicago: to Warrenville Road and turn right. Go east about Take the Eisenhower Expressway west to the East- 3/4 mile to the light at the entrance to the DoubleTree West Tollway (I-88). Go approximately 10 miles to Hotel (Navistar Drive) and turn right. At the first the Route 53 exit. Go left (south) on Route 53 about street, turn left. The TRS building is just east of the ¼ mile to Warrenville Road. Turn right and go approx- DoubleTree Hotel. The TRS logo is on the top of the imately 1 1/2 miles to the stop light at the entrance building. Turn right into the parking lot. Suite 101 is to the DoubleTree Hotel (Navistar Drive). Turn left located on the first floor, southeast corner. and at the first street, turn left again. The first build- ing east of the DoubleTree is the TRS building. The From the Northwest: TRS logo is on the top of the building. Turn right into Take the Northwest Tollway East to I-290. Go south the parking lot. Suite 101 is located on the first floor, and exit at I-355. Continue south to the East-West southeast corner. Tollway (I-88) exit to Aurora. Take the Route 53 exit. Go left (south) on Route 53 about ¼ mile to From the Southern Suburbs: Warrenville Road. Turn right and go approximately Take the Tri-State (I-294) North to the East-West 1 1/2 miles to the stop light at the entrance to the Tollway (I-88). Go approximately 10 miles to the DoubleTree Hotel (Navistar Drive). Turn left and Route 53 exit. Go left (south) on Route 53 about at the first street, turn left again. The first build- ¼ mile to Warrenville Road. Turn right and go approx- ing east of the DoubleTree is the TRS building. The imately 1 1/2 miles to the stop light at the entrance TRS logo is on the top of the building. Turn right into to the DoubleTree Hotel (Navistar Drive). Turn left the parking lot. Suite 101 is located on the first floor, and at the first street, turn left again. The first build- southeast corner. ing east of the DoubleTree is the TRS building. The TRS logo is on the top of the building. Turn right into From the Southwest: the parking lot. Suite 101 is located on the first floor, Take I-55 north towards Chicago. Exit at I-355 North. southeast corner. Take the East-West Tollway (I-88) exit to Aurora. Take the Route 53 exit. Go left (south) on Route 53 about From the Northern Suburbs: ¼ mile to Warrenville Road. Turn right and go approx- Take the Tri-State (I-294) South to the East-West imately 1 1/2 miles to the stop light at the entrance Tollway (I-88). Go approximately 10 miles to the to the DoubleTree Hotel (Navistar Drive). Turn left Route 53 exit. Go left (south) on Route 53 about and at the first street, turn left again. The first build- ¼ mile to Warrenville Road. Turn right and go approx- ing east of the DoubleTree is the TRS building. The imately 1 1/2 miles to the stop light at the entrance TRS logo is on the top of the building. Turn right into to the DoubleTree Hotel (Navistar Drive). Turn left the parking lot. Suite 101 is located on the first floor, and at the first street, turn left again. The first build- southeast corner. ing east of the DoubleTree is the TRS building. The TRS logo is on the top of the building. Turn right into the parking lot. Suite 101 is located on the first floor, southeast corner. 40 Lisle Teachers' Retirement System 4200 Commerce Ct. To Wheaton To Glen Ellyn To Lombard To North  Butterfield Rd. I-355 I-290 Aurora   

 53 To I-290

Naperville Rd. Park Blvd.

Cabot Dr Cabot and I-294

Lucent/Navistar Leask Ln.

 East-West Tollway To Warrenville  88  Dr Forbes Warrenville Rd. i

Navistar   Corporate West Dr. 355  Commerce Ct. i To I-294 To DeKalb 88 i 53  Freedom Dr. u34 Chicago Ogden Ave. 

Yackley Ave. Yackley Naper Blvd. Naper To Downers Grove  34 To Naperville u  To I-294

Maple Ave. Hobson Rd. To Aurora 

To I-34 75th St. To Rte. 83  To I-55 To I-55     [

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