103RD GENERAL ASSEMBLY
State of Illinois
2023 and 2024
HB4580

 

Introduced 1/31/2024, by Rep. Ryan Spain

 

SYNOPSIS AS INTRODUCED:
 
5 ILCS 375/6.20 new
40 ILCS 5/16-118  from Ch. 108 1/2, par. 16-118
40 ILCS 5/16-150.1

    Amends the State Employees Group Insurance Act of 1971. Provides that the eligibility of an annuitant or TRS benefit recipient to participate in the program of health benefits established under specified provisions of the Act shall not be suspended for any period during which he or she accepts employment from a school board or other employer in accordance with a provision of the Downstate Teacher Article of the Illinois Pension Code that allows annuitants to accept employment as a teacher without impairing retirement status if certain conditions are met, including a limit on the number of paid days the annuitant may work, or a provision for annuitants returning to teach in a subject shortage area. Provides that an annuitant or TRS benefit recipient shall not be deemed an active teacher based solely on the annuitant's or TRS benefit recipient's employment exceeding the limit on the number of paid days an annuitant may work without impairing retirement status. Amends the Downstate Teacher Article of the Illinois Pension Code to make conforming changes.


LRB103 37220 RPS 67339 b

 

 

A BILL FOR

 

HB4580LRB103 37220 RPS 67339 b

1    AN ACT concerning public employee benefits.
 
2    Be it enacted by the People of the State of Illinois,
3represented in the General Assembly:
 
4    Section 5. The State Employees Group Insurance Act of 1971
5is amended by adding Section 6.20 as follows:
 
6    (5 ILCS 375/6.20 new)
7    Sec. 6.20. Retired teacher returning to service.
8Notwithstanding any other provision of this Act, the
9eligibility of an annuitant or TRS benefit recipient to
10participate in the program of health benefits established
11under Section 6 or 6.5 of this Act shall not be suspended for
12any period during which he or she accepts employment from a
13school board or other employer in accordance with Section
1416-118 or Section 16-150.1 of the Illinois Pension Code. An
15annuitant or TRS benefit recipient shall not be deemed an
16active teacher based solely on the annuitant's or TRS benefit
17recipient's employment exceeding the limits under paragraph
18(2) of subsection (a) of Section 16-118 of the Illinois
19Pension Code or participation in the program under Section
2016-150.1 of the Illinois Pension Code.
 
21    Section 10. The Illinois Pension Code is amended by
22changing Sections 16-118 and 16-150.1 as follows:
 

 

 

HB4580- 2 -LRB103 37220 RPS 67339 b

1    (40 ILCS 5/16-118)  (from Ch. 108 1/2, par. 16-118)
2    Sec. 16-118. Retirement. "Retirement": Entry upon a
3retirement annuity or receipt of a single-sum retirement
4benefit granted under this Article after termination of active
5service as a teacher.
6    (a) An annuitant receiving a retirement annuity other than
7a disability retirement annuity may accept employment as a
8teacher from a school board or other employer specified in
9Section 16-106 without impairing retirement status, if that
10employment:
11        (1) is not within the school year during which service
12    was terminated; and
13        (2) does not exceed the following:
14            (i) before July 1, 2001, 100 paid days or 500 paid
15        hours in any school year;
16            (ii) during the period beginning July 1, 2001
17        through June 30, 2011, 120 paid days or 600 paid hours
18        in each school year;
19            (iii) during the period beginning July 1, 2011
20        through June 30, 2018, 100 paid days or 500 paid hours
21        in each school year;
22            (iv) beginning July 1, 2018 through June 30, 2026,
23        120 paid days or 600 paid hours in each school year,
24        but not more than 100 paid days in the same classroom;
25            (v) (blank); and

 

 

HB4580- 3 -LRB103 37220 RPS 67339 b

1            (vi) beginning July 1, 2026, 100 paid days or 500
2        paid hours in each school year.
3    Where such permitted employment is partly on a daily and
4partly on an hourly basis, a day shall be considered as 5
5hours.
6    An annuitant whose employment exceeds the amount specified
7in paragraph (2) shall not be deemed an active teacher for
8purposes of eligibility for group health benefits and may
9continue to participate in the program of health benefits
10established under Section 6 or 6.5 of the State Employees
11Group Insurance Act of 1971.
12    (b) Subsection (a) does not apply to an annuitant who
13returns to teaching under the program established in Section
1416-150.1, for the duration of his or her participation in that
15program.
16(Source: P.A. 102-537, eff. 8-20-21; 102-709, eff. 4-22-22;
17103-88, eff. 6-9-23; 103-525, eff. 8-11-23.)
 
18    (40 ILCS 5/16-150.1)
19    Sec. 16-150.1. Return to teaching in subject shortage
20area.
21    (a) As used in this Section, "eligible employment" means
22employment beginning on or after July 1, 2003 and ending no
23later than June 30, 2024, in a subject shortage area at a
24qualified school, in a position requiring certification under
25the law governing the certification of teachers.

 

 

HB4580- 4 -LRB103 37220 RPS 67339 b

1    As used in this Section, "qualified school" means a public
2elementary or secondary school that meets all of the following
3requirements:
4        (1) At the time of hiring a retired teacher under this
5    Section, the school is experiencing a shortage of teachers
6    in the subject shortage area for which the teacher is
7    hired.
8        (2) The school district to which the school belongs
9    has complied with the requirements of subsection (e), and
10    the regional superintendent has certified that compliance
11    to the System.
12        (3) If the school district to which the school belongs
13    provides group health benefits for its teachers generally,
14    substantially similar health benefits are made available
15    for teachers participating in the program under this
16    Section, without any limitations based on pre-existing
17    conditions.
18    (b) An annuitant receiving a retirement annuity under this
19Article (other than a disability retirement annuity) may
20engage in eligible employment at a qualified school without
21impairing his or her retirement status or retirement annuity,
22subject to the following conditions:
23        (1) the eligible employment does not begin within the
24    school year during which service was terminated;
25        (2) the annuitant has not received any early
26    retirement incentive under Section 16-133.3, 16-133.4, or

 

 

HB4580- 5 -LRB103 37220 RPS 67339 b

1    16-133.5;
2        (3) if the annuitant retired before age 60 and with
3    less than 34 years of service, the eligible employment
4    does not begin within the year following the effective
5    date of the retirement annuity;
6        (4) if the annuitant retired at age 60 or above or with
7    34 or more years of service, the eligible employment does
8    not begin within the 90 days following the effective date
9    of the retirement annuity; and
10        (5) before the eligible employment begins, the
11    employer notifies the System in writing of the annuitant's
12    desire to participate in the program established under
13    this Section.
14    (c) An annuitant engaged in eligible employment in
15accordance with subsection (b) shall be deemed a participant
16in the program established under this Section for so long as he
17or she remains employed in eligible employment.
18    (d) A participant in the program established under this
19Section continues to be a retirement annuitant, rather than an
20active teacher, for all of the purposes of this Code, but shall
21be deemed an active teacher for other purposes, such as
22inclusion in a collective bargaining unit, eligibility for
23group health benefits, and compliance with the laws governing
24the employment, regulation, certification, treatment, and
25conduct of teachers. A participant in the program established
26under this Section may continue to participate in the program

 

 

HB4580- 6 -LRB103 37220 RPS 67339 b

1of health benefits established under Section 6 or 6.5 of the
2State Employees Group Insurance Act of 1971.
3    With respect to an annuitant's eligible employment under
4this Section, neither employee nor employer contributions
5shall be made to the System and no additional service credit
6shall be earned. Eligible employment does not affect the
7annuitant's final average salary or the amount of the
8retirement annuity.
9    (e) Before hiring a teacher under this Section, the school
10district to which the school belongs must do the following:
11        (1) If the school district to which the school belongs
12    has honorably dismissed, within the calendar year
13    preceding the beginning of the school term for which it
14    seeks to employ a retired teacher under the program
15    established in this Section, any teachers who are legally
16    qualified to hold positions in the subject shortage area
17    and have not yet begun to receive their retirement
18    annuities under this Article, the vacant positions must
19    first be tendered to those teachers.
20        (2) For a period of at least 90 days during the 6
21    months preceding the beginning of either the fall or
22    spring term for which it seeks to employ a retired teacher
23    under the program established in this Section, the school
24    district must, on an ongoing basis, (i) advertise its
25    vacancies in the subject shortage area in employment
26    bulletins published by college and university placement

 

 

HB4580- 7 -LRB103 37220 RPS 67339 b

1    offices located near the school; (ii) search for teachers
2    legally qualified to fill those vacancies through the
3    Illinois Education Job Bank; and (iii) post all vacancies
4    on the school district's website and list the vacancy in
5    an online job portal or database.
6    A school district replacing a teacher who is unable to
7continue employment with the school district because of
8documented illness, injury, or disability that occurred after
9being hired by a school district under this Section shall be
10exempt from the provisions of paragraph (2) for 90 school
11days. However, the school district must on an ongoing basis
12comply with items (i), (ii), and (iii) of paragraph (2).
13    The school district must submit documentation of its
14compliance with this subsection to the regional
15superintendent. Upon receiving satisfactory documentation from
16the school district, the regional superintendent shall certify
17the district's compliance with this subsection to the System.
18    (f) This Section applies without regard to whether the
19annuitant was in service on or after the effective date of this
20amendatory Act of the 93rd General Assembly.
21(Source: P.A. 101-49, eff. 7-12-19; 102-440, eff. 8-20-21.)