Illinois Administrative Code › Title 56 - LABOR AND EMPLOYMENT › Part 2920 - DISQUALIFYING INCOME AND REDUCED BENEFITS › Subpart A - GENERAL PROVISIONS › Section 2920.75 - Allocation Of Retirement Pay

Current through Register Vol. 48, No. 28, July 12, 2024
a)
				Whenever an individual has received or will receive amounts as retirement pay
				as defined by Section
				2920.65 for a half
				month period, an amount shall be deemed to have been paid the individual for
				each day equal to one-fifteenth of such amounts.
b) Whenever an individual has received or
				will receive amounts as retirement pay as defined by Section
				2920.65 for a one
				month period, an amount shall be deemed to have been paid the individual for
				each day equal to one-thirtieth of such amounts.
c) Whenever an individual has received or
				will receive amounts as retirement pay as defined by Section
				2920.65 for any
				other period, an amount shall be deemed to have been paid the individual for
				each day in the period equal to the amounts of retirement pay divided by the
				number of days in the period.
d)
				Whenever an individual has received or will receive a lump sum amount which
				constitutes retirement pay under Section 2920.65, and if the retirement pay
				could have been received on a periodic basis at the option of the individual,
				an amount shall be deemed to have been paid the individual for each day in the
				period for which a periodic payment could have been received, provided that the
				employer has satisfied the notice requirement of this subsection. The amount
				deemed to have been paid shall be allocated in accordance with the formulas in
				subsections (a), (b) or (c) above, as appropriate. Within 10 calendar days
				after notification of the filing of the individual's claim for benefits, the
				employer must designate by notice to the Director the periodic basis on which
				the individual could have received the retirement pay, the amount that the
				individual could have received each period and the duration for which periodic
				payments could have been made. Failure to so notify the Director shall result
				in such lump sum payment being treated as disqualifying only for the week in
				which it was paid under Section
				2920.70(c).
Example 1: An individual retires from Company A. In
				  accordance with the company's retirement plan, the individual has the option to
				  receive a lump sum payment of $300,000.00 or a monthly annuity of $3,000.00 for
				  the rest of his life. The individual chooses to receive the lump sum. The
				  individual then files a claim for benefits. If the company notifies the
				  Director within 10 calendar days after notification of the individual's claim
				  for benefits, designating the periodic basis on which the individual could have
				  received retirement payments, the amount the individual could have received
				  each period, and the duration for which the individual could have received the
				  periodic payments, the individual's $300,000.00 lump sum retirement payment
				  will be deemed to have been received in monthly installments of $3,000.00 and
				  will be allocated in accordance with subsection (b).
Example 2: The same situation as that given in the preceding
				  example except that the company fails to notify the Director within 10 calendar
				  days after notification of the individual's claim for benefits of the
				  individual's option to receive periodic retirement payments. The company's
				  failure to give such notice results in the individual's receipt of the lump sum
				  retirement payment being treated as disqualifying only for the week in which it
				  was paid.