The following definitions are provided to help you understand terms we regularly use in our seminars, correspondence, and publications. These definitions are general, not technical, in nature. For detailed definitions, please see the Illinois Pension Code, Article 16.

R

recalculation

An adjustment to the dollar amount of an annuity resulting from a change in the previously reported rate, earnings, or service credit.

reciprocal retirement systems

Systems that recognize service credit earned in another retirement system when determining the eligibility and amount of a benefit. The benefit is calculated as if all service had been earned in one system. There are 13 reciprocal retirement systems in Illinois.

reciprocity

The process of recognizing service credit earned in another reciprocal retirement system in Illinois when a retirement benefit is calculated. Including TRS, there are 13 reciprocal systems in Illinois.

Reconciliation of Health Insurance Contributions form

A form prepared by a TRS employer that compares the employer and member THIS Fund contributions due, per the Employer's Annual Report of Earnings, to the amounts remitted throughout the year and establishes the amount of any underpayments or overpayments of contributions.

refund

A withdrawal of TRS retirement and automatic increase in base pension (AIBP) contributions terminating all TRS benefits, or the withdrawal of survivor benefit contributions after retirement when there is no dependent beneficiary, terminating future eligibility for survivor benefits.

refundable contributions

1. For active or inactive members, it consists of member contributions, currently 9.4 percent, less survivor benefit contributions (1 percent);
2. For annuitants, the 1 percent survivor benefit contribution, if the annuitant has no dependents. Interest that has accrued on these amounts and the contribution for the Teachers' Retirement Insurance Program are nonrefundable.

regional superintendent

An elected public official who is the chief executive officer of a regional office of education (ROE).

reversionary annuity

A monthly benefit paid to a designated beneficiary in addition to the monthly survivor benefit. At retirement the member must have chosen to reduce the age retirement annuity in order to provide the supplemental survivor benefit.

rollover

A tax-free distribution of monies from an eligible retirement plan that is transferred directly to TRS to pay for the purchase of optional service, reinstatement of terminated service, payment of 2.2 upgrade contributions, or the member's ERO contribution.

Rule of 85

Allows employees of state government to retire without an early retirement penalty when the sum of creditable service and age in years equals 85 or greater. Does not apply to employees of local school districts.

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