Disability Retirement Annuity Earnings Limitation
As a recipient of a TRS disability retirement annuity, you may be gainfully employed within certain limitations.
If you are employed in an occupation other than teaching or by a TRS-covered employer (see “New law allows part-time, limited teaching”) while you are receiving a disability retirement annuity, the combined gross earnings from your employment and annuity cannot exceed the salary rate upon which your benefit was based. If the amount is exceeded, your benefit will cease including Teachers’ Retirement Insurance Program (TRIP) insurance.
For employment other than TRS-covered teaching, your final salary rate will be increased by 15 percent on the 10th anniversary of the commencement of your annuity to increase the amount of allowable earnings. There is no increase for employment with a TRS-covered employer.
To determine if you will exceed your earnings limitations, subtract your gross annual disability retirement annuity from the salary rate upon which your benefit was based. The difference represents the gross earnings you are allowed in one calendar year from employment other than teaching.
Annually, you will receive a disability questionnaire. This form requires you to provide information about your disability; however, we may also request you to have additional medical examinations to substantiate the continuation of the disability.
As a recipient of a disability retirement annuity, you are required to submit filed copies of all federal and state income tax returns, pay stubs, business earnings statements, and other such documentation that sets forth your gross earnings each year while you are receiving a disability retirement annuity. We do not take into account deductions for losses, expenses, taxes, or other such items of withholding when determining your permissible earnings. If we determine that you have exceeded your earnings limitation, you must repay the entire overpayment in a lump sum or in payments as determined by TRS rules.
New law allows part-time, limited 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 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.
To determine if you will exceed your earnings limitations, subtract your gross annual disability retirement annuity from the salary rate upon which your benefit was based. The difference represents the gross earnings you are allowed in a school year (July 1 to June 30) from employment other than teaching.
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.
If you exceed the salary rate upon which your benefit was based, your benefit will cease including Teachers’ Retirement Insurance Program (TRIP) insurance.
Returning to teaching may affect Medicare coverage. If you currently receive Medicare benefits, please contact your local Social Security office regarding your return to work.
If you wish to return to teaching on a limited basis, you must contact TRS to request a Limited Return to Work Program Certification form. This form must be completed and returned to TRS prior to your return to teaching.
Questions?
If you have questions, please contact us.
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