Disability retirement annuity

Eligibility

If you remain disabled after the nonoccupational disability benefit eligibility period has expired, you are eligible for either a disability retirement annuity or an age retirement annuity (if you meet the age and service credit requirements). You may switch to either a disability retirement annuity or an age retirement annuity (if you meet the requirements) at any time while you are receiving a nonoccupational disability benefit. No service credit is earned while you are receiving a disability retirement annuity.

Application procedures

When the eligibility period for nonoccupational disability benefits is due to expire, we will notify you. Before the benefit expires, you may either send us a letter or call us to request a transfer to a disability retirement annuity or an age retirement annuity.

Effective date

The disability retirement annuity is effective:

• the day following the last day for which disability benefits are payable or
• the first of the month after we receive your completed disability retirement annuity application form.

Benefit amount

Your disability retirement annuity is the greater of:

• 35 percent of the greater of your last annual contract salary or your annual contract rate on the date your disability began (we use an annualized salary rate based on actual earnings for noncontractual teachers);
• the amount computed by the retirement formula reduced by 0.50 percent for each month you are under age 60 with less than 20 years of service credit; or
• the amount computed by the retirement formula reduced by the 0.50 percent for each month you are under age 55 with 20 years of service credit; or
• the amount computed by the retirement formula with no reduction if you are age 55 or older with at least 20 years of service credit.

Your initial benefit will be increased by the amount of any annual in­creases that you have been granted while you were receiving a nonoccupational disability benefit.

Duration of benefits

The disability retirement annuity will continue until:

• your disability ceases or
• you resume teaching (see “New law allows limited, part-time teaching”); or
• you are eligible and ap­ply for an age retirement annuity.

If you resume teaching in a non TRS-covered position after receiving a disability retirement annuity and are disabled again for the same cause within 90 days, the benefit will be reinstated at the previous rate after we receive your completed disability benefit application form and required medical documentation. In this case, benefits will begin the day following the last day for which you are paid by your employer.

Employment restrictions

While you are receiving a disability retirement annuity, you may not be employed by any other public or private school, college, or university in a teaching position, including subbing and tutoring.

However, gainful employment in any area other than teaching is permitted or in any area of TRS-covered employment as indicated under “New law allows limited, part-time teaching.” The combined income from the disability retirement annuity and the earnings from the nonteaching occupation cannot exceed the salary rate upon which the annuity was based. If you have earnings above this limit, your disability retirement annuity may be reduced or suspended.

For those returning to employment in any area other than teaching, the salary rate for purposes of this calculation will increase 15 percent after you have received a disability retirement annuity for 10 years.

If you exceed the salary rate upon which your benefit was based, your benefit will cease including Teachers’ Retirement Insurance Program (TRIP) insurance.

Annual increases

Your disability retirement annuity will increase annually beginning the January 1 following the fourth anniversary of the date you were granted a disability benefit.

If the first annual increase follows the fourth anniversary of the date you were granted a disability benefit, the increase will be 7 percent of the current annuity.

After the initial increase, your annuity will increase by 3 percent of the current benefit each January 1.

New law allows limited, part-time teaching

On August 10, 2005, Governor Blagojevich signed Public Act 94-0539 into law. This legislation allows individuals who have received TRS disability benefits for one year or more to return to teaching if their medical conditions improve, allowing limited, part-time work. This legislation allows you on a limited basis to tutor, substitute, or part-time teach for a TRS-covered employer without loss of your disability benefit as long as your combined earnings from your teaching and your disability benefit do not exceed 100 percent of the salary rate upon which the benefit was based.

For those returning to teaching with a TRS-covered employer, the salary rate for purposes of this calculation will not increase 15 percent after you have received a disability retirement annuity for 10 years.

If you exceed the salary rate upon which your benefit was based, your benefit will cease including Teachers’ Retirement Insurance Program (TRIP) insurance.

You may not teach for any employers not covered by the Teachers’ Retirement System of the State of Illinois. This includes tutoring and substitute work.

This law applies to all members receiving nonoccupational disability benefits, occupational disability benefits, and disability retirement annuities.

Medical examinations

To substantiate your continued eligibility for any type of disability benefits, we may re­quire additional medical examinations and request medical and other records. The fre­quency of re-examination is governed by individual circumstances; however, you must have medical examinations at least once a year while you are receiving nonoccupational or occupational disability benefits. If you are receiving a disability retirement annuity, periodic medical examinations may be required. If you do not submit to medical examinations or provide the necessary information, your benefits will be suspended.

Questions?

If you have questions, please contact us.

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