093_HB1185enr HB1185 Enrolled LRB093 07871 EFG 08061 b 1 AN ACT in relation to public employee benefits. 2 Be it enacted by the People of the State of Illinois, 3 represented in the General Assembly: 4 Section 5. The State Employees Group Insurance Act of 5 1971 is amended by adding Section 6.15 as follows: 6 (5 ILCS 375/6.15 new) 7 Sec. 6.15. Retired teacher returning to service in 8 shortage area. Notwithstanding any other provision of this 9 Act, the eligibility of an annuitant or TRS benefit recipient 10 to participate in the program of health benefits established 11 under Section 6 or 6.5 of this Act is suspended for any 12 period during which he or she is covered under a plan of 13 group health benefits for active teachers due to eligible 14 employment as defined in Section 16-150.1 of the Illinois 15 Pension Code. Upon termination of that coverage, eligibility 16 to participate in the program of health benefits established 17 under Section 6 or 6.5 shall be immediately restored, without 18 any interruption or delay in coverage or limitation as to 19 pre-existing medical condition. 20 Section 10. The Illinois Pension Code is amended by 21 changing Sections 16-106, 16-118, 16-132, 16-150, and 16-152 22 and adding Section 16-150.1 as follows: 23 (40 ILCS 5/16-106) (from Ch. 108 1/2, par. 16-106) 24 Sec. 16-106. Teacher. "Teacher": The following 25 individuals, provided that, for employment prior to July 1, 26 1990, they are employed on a full-time basis, or if not 27 full-time, on a permanent and continuous basis in a position 28 in which services are expected to be rendered for at least 29 one school term: HB1185 Enrolled -2- LRB093 07871 EFG 08061 b 1 (1) Any educational, administrative, professional 2 or other staff employed in the public common schools 3 included within this system in a position requiring 4 certification under the law governing the certification 5 of teachers; 6 (2) Any educational, administrative, professional 7 or other staff employed in any facility of the Department 8 of Children and Family Services or the Department of 9 Human Services, in a position requiring certification 10 under the law governing the certification of teachers, 11 and any person who (i) works in such a position for the 12 Department of Corrections, (ii) was a member of this 13 System on May 31, 1987, and (iii) did not elect to become 14 a member of the State Employees' Retirement System 15 pursuant to Section 14-108.2 of this Code; except that 16 "teacher" does not include any person who (A) becomes a 17 security employee of the Department of Human Services, as 18 defined in Section 14-110, after June 28, 2001 (the 19 effective date of Public Act 92-14), or (B) becomes a 20 member of the State Employees' Retirement System pursuant 21 to Section 14-108.2c of this Code; 22 (3) Any regional superintendent of schools, 23 assistant regional superintendent of schools, State 24 Superintendent of Education; any person employed by the 25 State Board of Education as an executive; any executive 26 of the boards engaged in the service of public common 27 school education in school districts covered under this 28 system of which the State Superintendent of Education is 29 an ex-officio member; 30 (4) Any employee of a school board association 31 operating in compliance with Article 23 of the School 32 Code who is certificated under the law governing the 33 certification of teachers; 34 (5) Any person employed by the retirement system HB1185 Enrolled -3- LRB093 07871 EFG 08061 b 1 who: 2 (i) was an employee of and a participant in 3 the system on August 17, 2001 (the effective date of 4 Public Act 92-416), or 5 (ii) becomes an employee of the system on or 6 after August 17, 2001; 7 (6) Any educational, administrative, professional 8 or other staff employed by and under the supervision and 9 control of a regional superintendent of schools, provided 10 such employment position requires the person to be 11 certificated under the law governing the certification of 12 teachers and is in an educational program serving 2 or 13 more districts in accordance with a joint agreement 14 authorized by the School Code or by federal legislation; 15 (7) Any educational, administrative, professional 16 or other staff employed in an educational program 17 serving 2 or more school districts in accordance with a 18 joint agreement authorized by the School Code or by 19 federal legislation and in a position requiring 20 certification under the laws governing the certification 21 of teachers; 22 (8) Any officer or employee of a statewide teacher 23 organization or officer of a national teacher 24 organization who is certified under the law governing 25 certification of teachers, provided: (i) the individual 26 had previously established creditable service under this 27 Article, (ii) the individual files with the system an 28 irrevocable election to become a member, and (iii) the 29 individual does not receive credit for such service under 30 any other Article of this Code; 31 (9) Any educational, administrative, professional, 32 or other staff employed in a charter school operating in 33 compliance with the Charter Schools Law who is 34 certificated under the law governing the certification of HB1185 Enrolled -4- LRB093 07871 EFG 08061 b 1 teachers. 2 An annuitant receiving a retirement annuity under this 3 Article or under Article 17 of this Code who istemporarily4 employed by a board of education or other employer asnot5exceeding thatpermitted under Section 16-118 or 16-150.1 is 6 not a "teacher" for purposes of this Article. A person who 7 has received a single-sum retirement benefit under Section 8 16-136.4 of this Article is not a "teacher" for purposes of 9 this Article. 10 (Source: P.A. 92-14, eff. 6-28-01; 92-416, eff. 8-17-01; 11 92-651, eff. 7-11-02.) 12 (40 ILCS 5/16-118) (from Ch. 108 1/2, par. 16-118) 13 Sec. 16-118. Retirement. "Retirement": Entry upon a 14 retirement annuity or receipt of a single-sum retirement 15 benefit granted under this Article after termination of 16 active service as a teacher. 17 (a) An annuitant receiving a retirement annuity other 18 than a disability retirement annuity may accept employment as 19 a teacher from a school board or other employer specified in 20 Section 16-106 without impairing retirement status, if that 21 employment: (1) is not within the school year during which 22 service was terminated; and (2) does not exceed 100 paid days 23 or 500 paid hours in any school year (during the period 24 beginning July 1, 2001 through June 30, 2006, 120 paid days 25 or 600 paid hours in each school year). Where such permitted 26 employment is partly on a daily and partly on an hourly 27 basis, a day shall be considered as 5 hours. 28 (b) Subsection (a) does not apply to an annuitant who 29 returns to teaching under the program established in Section 30 16-150.1, for the duration of his or her participation in 31 that program. 32 (Source: P.A. 92-416, eff. 8-17-01.) HB1185 Enrolled -5- LRB093 07871 EFG 08061 b 1 (40 ILCS 5/16-132) (from Ch. 108 1/2, par. 16-132) 2 Sec. 16-132. Retirement annuity eligibility. A member 3 who has at least 20 years of creditable service is entitled 4 to a retirement annuity upon or after attainment of age 55. 5 A member who has at least 10 but less than 20 years of 6 creditable service is entitled to a retirement annuity upon 7 or after attainment of age 60. A member who has at least 5 8 but less than 10 years of creditable service is entitled to a 9 retirement annuity upon or after attainment of age 62. A 10 member who (i) has earned during the period immediately 11 preceding the last day of service at least one year of 12 contributing creditable service as an employee of a 13 department as defined in Section 14-103.04, (ii) has earned 14 at least 5 years of contributing creditable service as an 15 employee of a department as defined in Section 14-103.04, and 16 (iii) retires on or after January 1, 2001 is entitled to a 17 retirement annuity upon or after attainment of an age which, 18 when added to the number of years of his or her total 19 creditable service, equals at least 85. Portions of years 20 shall be counted as decimal equivalents. 21 A member who is eligible to receive a retirement annuity 22 of at least 74.6% of final average salary and will attain age 23 55 on or before December 31 during the year which commences 24 on July 1 shall be deemed to attain age 55 on the preceding 25 June 1. 26 A member meeting the above eligibility conditions is 27 entitled to a retirement annuity upon written application to 28 the board setting forth the date the member wishes the 29 retirement annuity to commence. However, the effective date 30 of the retirement annuity shall be no earlier than the day 31 following the last day of creditable service, regardless of 32 the date of official termination of employment. 33 To be eligible for a retirement annuity, a member shall 34 not be employed as a teacher in the schools included under HB1185 Enrolled -6- LRB093 07871 EFG 08061 b 1 this System or under Article 17, except (i) as provided in 2 Section 16-118 or 16-150.1, (ii) ifunlessthe member is 3 disabled (in which event, eligibility for salary must cease), 4 or (iii) ifunlessthe System is required by federal law to 5 commence payment due to the member's age; the changes to this 6 sentence made by this amendatory Act of the 93rd General 7 Assembly1991 shallapply without regard to whether the 8 member terminated employment before or after its effective 9 date. 10 (Source: P.A. 90-582, eff. 5-27-98; 91-927, eff. 12-14-00.) 11 (40 ILCS 5/16-150) (from Ch. 108 1/2, par. 16-150) 12 Sec. 16-150. Re-entry. 13 (a) This Section does not apply to an annuitant who 14 returns to teaching under the program established in Section 15 16-150.1, for the duration of his or her participation in 16 that program. 17 (b) If an annuitant under this System is again employed 18 as a teacher for an aggregate period exceeding that permitted 19 by Section 16-118, his or her retirement annuity shall be 20 terminated and the annuitant shall thereupon be regarded as 21 an active member. The annuitant's remaining accumulated 22 contributions shall be transferred to the Members' 23 Contribution Reserve from the Employer's Contribution 24 Reserve. 25 Such annuitant is not entitled to a recomputation of his 26 or her retirement annuity unless at least one full year of 27 creditable service is rendered after the latest re-entry into 28 service and the annuitant must have rendered at least 3 years 29 of creditable service after last re-entry into service to 30 qualify for a recomputation of the retirement annuity based 31 on amendments enacted while in receipt of a retirement 32 annuity, except when retirement was due to disability. 33 However, regardless of age, an annuitant in receipt of a HB1185 Enrolled -7- LRB093 07871 EFG 08061 b 1 retirement annuity may be given temporary employment by a 2 school board not exceeding that permitted under Section 3 16-118 and continue to receive the retirement annuity. 4 (c) Unless retirement was necessitated by disability, a 5 retirement shall be considered cancelled and the retirement 6 allowance must be repaid in full if the annuitant is employed 7 as a teacher within the school year during which service was 8 terminated. 9 (d) An annuitant's retirement which does not include a 10 period of at least one full and complete school year shall be 11 considered cancelled and the retirement annuity must be 12 repaid in full unless such retirement was necessitated by 13 disability. 14 (Source: P.A. 86-273; 87-794.) 15 (40 ILCS 5/16-150.1 new) 16 Sec. 16-150.1. Return to teaching in subject shortage 17 area. 18 (a) As used in this Section, "eligible employment" means 19 employment beginning on or after July 1, 2003 and ending no 20 later than June 30, 2008, in a subject shortage area at a 21 qualified school, in a position requiring certification under 22 the law governing the certification of teachers. 23 As used in this Section, "qualified school" means a 24 public elementary or secondary school that meets all of the 25 following requirements: 26 (1) At the time of hiring a retired teacher under 27 this Section, the school is experiencing a shortage of 28 teachers in the subject shortage area for which the 29 teacher is hired. 30 (2) The school district to which the school belongs 31 has complied with the requirements of subsection (e), and 32 the regional superintendent has certified that compliance 33 to the System. HB1185 Enrolled -8- LRB093 07871 EFG 08061 b 1 (3) If the school district to which the school 2 belongs provides group health benefits for its teachers 3 generally, substantially similar health benefits are made 4 available for teachers participating in the program under 5 this Section, without any limitations based on 6 pre-existing conditions. 7 (b) An annuitant receiving a retirement annuity under 8 this Article (other than a disability retirement annuity) may 9 engage in eligible employment at a qualified school without 10 impairing his or her retirement status or retirement annuity, 11 subject to the following conditions: 12 (1) the eligible employment does not begin within 13 the school year during which service was terminated; 14 (2) the annuitant has not received any early 15 retirement incentive under Section 16-133.3, 16-133.4, or 16 16-133.5; 17 (3) if the annuitant retired before age 60 and with 18 less than 34 years of service, the eligible employment 19 does not begin within the year following the effective 20 date of the retirement annuity; 21 (4) if the annuitant retired at age 60 or above or 22 with 34 or more years of service, the eligible employment 23 does not begin within the 90 days following the effective 24 date of the retirement annuity; and 25 (5) before the eligible employment begins, the 26 employer notifies the System in writing of the 27 annuitant's desire to participate in the program 28 established under this Section. 29 (c) An annuitant engaged in eligible employment in 30 accordance with subsection (b) shall be deemed a participant 31 in the program established under this Section for so long as 32 he or she remains employed in eligible employment. 33 (d) A participant in the program established under this 34 Section continues to be a retirement annuitant, rather than HB1185 Enrolled -9- LRB093 07871 EFG 08061 b 1 an active teacher, for all of the purposes of this Code, but 2 shall be deemed an active teacher for other purposes, such as 3 inclusion in a collective bargaining unit, eligibility for 4 group health benefits, and compliance with the laws governing 5 the employment, regulation, certification, treatment, and 6 conduct of teachers. 7 With respect to an annuitant's eligible employment under 8 this Section, neither employee nor employer contributions 9 shall be made to the System and no additional service credit 10 shall be earned. Eligible employment does not affect the 11 annuitant's final average salary or the amount of the 12 retirement annuity. 13 (e) Before hiring a teacher under this Section, the 14 school district to which the school belongs must do the 15 following: 16 (1) If the school district to which the school 17 belongs has honorably dismissed, within the calendar year 18 preceding the beginning of the school term for which it 19 seeks to employ a retired teacher under the program 20 established in this Section, any teachers who are legally 21 qualified to hold positions in the subject shortage area 22 and have not yet begun to receive their retirement 23 annuities under this Article, the vacant positions must 24 first be tendered to those teachers. 25 (2) For a period of at least 90 days during the 6 26 months preceding the beginning of the school term for 27 which it seeks to employ a retired teacher under the 28 program established in this Section, the school district 29 must, on an ongoing basis, both (i) advertise its 30 vacancies in the subject shortage area in a newspaper of 31 general circulation in the area in which the school is 32 located and in employment bulletins published by college 33 and university placement offices located near the school; 34 and (ii) search for teachers legally qualified to fill HB1185 Enrolled -10- LRB093 07871 EFG 08061 b 1 those vacancies through the Illinois Education Job Bank. 2 The school district must submit documentation of its 3 compliance with this subsection to the regional 4 superintendent. Upon receiving satisfactory documentation 5 from the school district, the regional superintendent shall 6 certify the district's compliance with this subsection to the 7 System. 8 (f) This Section applies without regard to whether the 9 annuitant was in service on or after the effective date of 10 this amendatory Act of the 93rd General Assembly. 11 (40 ILCS 5/16-152) (from Ch. 108 1/2, par. 16-152) 12 Sec. 16-152. Contributions by members. 13 (a) Each member shall make contributions for membership 14 service to this System as follows: 15 (1) Effective July 1, 1998, contributions of 7.50% 16 of salary towards the cost of the retirement annuity. 17 Such contributions shall be deemed "normal 18 contributions". 19 (2) Effective July 1, 1969, contributions of 1/2 of 20 1% of salary toward the cost of the automatic annual 21 increase in retirement annuity provided under Section 22 16-133.1. 23 (3) Effective July 24, 1959, contributions of 1% of 24 salary towards the cost of survivor benefits. Such 25 contributions shall not be credited to the individual 26 account of the member and shall not be subject to refund 27 except as provided under Section 16-143.2. 28 (b) The minimum required contribution for any year of 29 full-time teaching service shall be $192. 30 (c) Contributions shall not be required of any annuitant 31 receiving a retirement annuity who is giventemporary32 employment asnot exceeding thatpermitted under Section 33 16-118 or 16-150.1. HB1185 Enrolled -11- LRB093 07871 EFG 08061 b 1 (d) A person who (i) was a member before July 1, 1998, 2 (ii) retires with more than 34 years of creditable service, 3 and (iii) does not elect to qualify for the augmented rate 4 under Section 16-129.1 shall be entitled, at the time of 5 retirement, to receive a partial refund of contributions made 6 under this Section for service occurring after the later of 7 June 30, 1998 or attainment of 34 years of creditable 8 service, in an amount equal to 1.00% of the salary upon which 9 those contributions were based. 10 (Source: P.A. 90-582, eff. 5-27-98.) 11 Section 15. The School Code is amended by changing 12 Section 3-14.25 as follows: 13 (105 ILCS 5/3-14.25) (from Ch. 122, par. 3-14.25) 14 Sec. 3-14.25. Unfilled teaching positions list; subject 15 shortage area certifications. 16 (a) To maintain, and make available to the public during 17 regular business hours, a list of unfilled teaching positions 18 within the region. The most current version of the list must 19 be posted on or linked to the regional office of education's 20 Internet web site. If the regional office of education does 21 not have an Internet web site, the regional superintendent of 22 schools must make the list available to the State Board of 23 Education and the State Board of Education must post the list 24 on the State Board of Education's Internet web site. The 25 State Board of Education's Internet web site must provide a 26 link to each regional office of education's list. 27 (b) To certify to the Teachers' Retirement System of the 28 State of Illinois that a school district has submitted 29 satisfactory evidence of compliance with the requirements of 30 subsection (e) of Section 16-150.1 of the Illinois Pension 31 Code, for the purpose of authorizing the employment of 32 retired teachers in subject shortage areas under the program HB1185 Enrolled -12- LRB093 07871 EFG 08061 b 1 established in that Section. 2 (Source: P.A. 92-41, eff. 7-1-01.) 3 Section 99. Effective date. This Act takes effect upon 4 becoming law.