103RD GENERAL ASSEMBLY
State of Illinois
2023 and 2024
SB3346

 

Introduced 2/7/2024, by Sen. Robert F. Martwick

 

SYNOPSIS AS INTRODUCED:
 
40 ILCS 5/17-149  from Ch. 108 1/2, par. 17-149
30 ILCS 805/8.48 new

    Amends the Chicago Teacher Article of the Illinois Pension Code. In a provision allowing a service retirement pensioner to be re-employed as a teacher for a specified number of days without cancellation of the service retirement pension, provides that if a service retirement pensioner works more than the number of days allowed under that provision in any school year, the service retirement pension benefit shall be withheld on a pro rata basis for each day worked in excess of the number of days allowed. Provides that if a pensioner who only teaches drivers education courses after regular school hours works more than 900 hours in any school year, the service retirement pension benefit shall be withheld on a pro rata basis for each period of 7.5 hours in excess of 900 hours. Provides that the changes made by the amendatory Act are retroactive to July 1, 2020. Provides that all service retirement pensioners whose service retirement pensions were cancelled as a result of re-employment as a teacher during the period of July 1, 2020 through the effective date of the amendatory Act shall have their overpayments recalculated on a pro rata basis consistent with the changes made by the amendatory Act, and the difference between the initial overpayment and the recalculated overpayment shall be refunded to those service retirement pensioners with interest. Amends the State Mandates Act to require implementation without reimbursement. Effective immediately.


LRB103 38204 RPS 68338 b

STATE MANDATES ACT MAY REQUIRE REIMBURSEMENT
MAY APPLY

 

 

A BILL FOR

 

SB3346LRB103 38204 RPS 68338 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 Illinois Pension Code is amended by
5changing Section 17-149 as follows:
 
6    (40 ILCS 5/17-149)  (from Ch. 108 1/2, par. 17-149)
7    Sec. 17-149. Cancellation of pensions.
8    (a) If any person receiving a disability retirement
9pension from the Fund is re-employed as a teacher by an
10Employer, the pension shall be cancelled on the date the
11re-employment begins, or on the first day of a payroll period
12for which service credit was validated, whichever is earlier.
13    (b) If any person receiving a service retirement pension
14from the Fund is re-employed as a teacher on a permanent or
15annual basis by an Employer, the pension shall be cancelled on
16the date the re-employment begins, or on the first day of a
17payroll period for which service credit was validated,
18whichever is earlier. However, subject to the limitations and
19requirements of subsection (c-5), (c-6), (c-7), or (c-10), the
20pension shall not be cancelled in the case of a service
21retirement pensioner who is re-employed on a temporary and
22non-annual basis or on an hourly basis.
23    (c) If the date of re-employment on a permanent or annual

 

 

SB3346- 2 -LRB103 38204 RPS 68338 b

1basis occurs within 5 school months after the date of previous
2retirement, exclusive of any vacation period, the member shall
3be deemed to have been out of service only temporarily and not
4permanently retired. Such person shall be entitled to pension
5payments for the time he could have been employed as a teacher
6and received salary, but shall not be entitled to pension for
7or during the summer vacation prior to his return to service.
8    When the member again retires on pension, the time of
9service and the money contributed by him during re-employment
10shall be added to the time and money previously credited. Such
11person must acquire 3 consecutive years of additional
12contributing service before he may retire again on a pension
13at a rate and under conditions other than those in force or
14attained at the time of his previous retirement.
15    (c-5) For school years beginning on or after July 1, 2019
16and before July 1, 2022, the service retirement pension shall
17not be cancelled in the case of a service retirement pensioner
18who is re-employed as a teacher on a temporary and non-annual
19basis or on an hourly basis, so long as the person (1) does not
20work as a teacher for compensation on more than 120 days in a
21school year or (2) does not accept gross compensation for the
22re-employment in a school year in excess of (i) $30,000 or (ii)
23in the case of a person who retires with at least 5 years of
24service as a principal, an amount that is equal to the daily
25rate normally paid to retired principals multiplied by 100.
26These limitations apply only to school years that begin on or

 

 

SB3346- 3 -LRB103 38204 RPS 68338 b

1after July 1, 2019 and before July 1, 2022. Such re-employment
2does not require contributions, result in service credit, or
3constitute active membership in the Fund.
4    The service retirement pension shall not be cancelled in
5the case of a service retirement pensioner who is re-employed
6as a teacher on a temporary and non-annual basis or on an
7hourly basis, so long as the person (1) does not work as a
8teacher for compensation on more than 100 days in a school year
9or (2) does not accept gross compensation for the
10re-employment in a school year in excess of (i) $30,000 or (ii)
11in the case of a person who retires with at least 5 years of
12service as a principal, an amount that is equal to the daily
13rate normally paid to retired principals multiplied by 100.
14These limitations apply only to school years that begin on or
15after August 8, 2012 (the effective date of Public Act 97-912)
16and before July 1, 2019. Such re-employment does not require
17contributions, result in service credit, or constitute active
18membership in the Fund.
19    Notwithstanding the 120-day limit set forth in item (1) of
20this subsection (c-5), the service retirement pension shall
21not be cancelled in the case of a service retirement pensioner
22who teaches only driver education courses after regular school
23hours and does not teach any other subject area, so long as the
24person does not work as a teacher for compensation for more
25than 900 hours in a school year. The $30,000 limit set forth in
26subitem (i) of item (2) of this subsection (c-5) shall apply to

 

 

SB3346- 4 -LRB103 38204 RPS 68338 b

1a service retirement pensioner who teaches only driver
2education courses after regular school hours and does not
3teach any other subject area.
4    To be eligible for such re-employment without cancellation
5of pension, the pensioner must notify the Fund and the Board of
6Education of his or her intention to accept re-employment
7under this subsection (c-5) before beginning that
8re-employment (or if the re-employment began before August 8,
92012 (the effective date of Public Act 97-912), then within 30
10days after that effective date).
11    An Employer must certify to the Fund the temporary and
12non-annual or hourly status and the compensation of each
13pensioner re-employed under this subsection at least
14quarterly, and when the pensioner is approaching the earnings
15limitation under this subsection.
16    If the pensioner works more than 100 days or accepts
17excess gross compensation for such re-employment in any school
18year that begins on or after August 8, 2012 (the effective date
19of Public Act 97-912), the service retirement pension shall
20thereupon be cancelled.
21    If the pensioner who only teaches drivers education
22courses after regular school hours works more than 900 hours
23or accepts excess gross compensation for such re-employment in
24any school year that begins on or after August 12, 2016 (the
25effective date of Public Act 99-786), the service retirement
26pension shall thereupon be cancelled.

 

 

SB3346- 5 -LRB103 38204 RPS 68338 b

1    If the pensioner works more than 120 days or accepts
2excess gross compensation for such re-employment in any school
3year that begins on or after July 1, 2019, the service
4retirement pension shall thereupon be cancelled.
5    The Board of the Fund shall adopt rules for the
6implementation and administration of this subsection.
7    (c-6) For school years beginning on or after July 1, 2022
8and before July 1, 2024, the service retirement pension shall
9not be cancelled in the case of a service retirement pensioner
10who is re-employed as a teacher or an administrator on a
11temporary and non-annual basis or on an hourly basis, so long
12as the person does not work as a teacher or an administrator
13for compensation on more than 140 days in a school year. Such
14re-employment does not require contributions, result in
15service credit, or constitute active membership in the Fund.
16    (c-7) For school years beginning on or after July 1, 2024,
17the service retirement pension shall not be cancelled in the
18case of a service retirement pensioner who is re-employed as a
19teacher or an administrator on a temporary and non-annual
20basis or on an hourly basis, so long as the person does not
21work as a teacher or an administrator for compensation on more
22than 120 days in a school year. Such re-employment does not
23require contributions, result in service credit, or constitute
24active membership in the Fund.
25    (c-10) Until June 30, 2024, the service retirement pension
26of a service retirement pensioner shall not be cancelled if

 

 

SB3346- 6 -LRB103 38204 RPS 68338 b

1the service retirement pensioner is employed in a subject
2shortage area and the Employer that is employing the service
3retirement pensioner meets the following requirements:
4        (1) If the Employer has honorably dismissed, within
5    the calendar year preceding the beginning of the school
6    term for which it seeks to employ a service retirement
7    pensioner under this subsection, any teachers who are
8    legally qualified to hold positions in the subject
9    shortage area and have not yet begun to receive their
10    service retirement pensions under this Article, the vacant
11    positions must first be tendered to those teachers.
12        (2) For a period of at least 90 days during the 6
13    months preceding the beginning of either the fall or
14    spring term for which it seeks to employ a service
15    retirement pensioner under this subsection, the Employer
16    must, on an ongoing basis, (i) advertise its vacancies in
17    the subject shortage area in employment bulletins
18    published by college and university placement offices
19    located near the school; (ii) search for teachers legally
20    qualified to fill those vacancies through the Illinois
21    Education Job Bank; and (iii) post all vacancies on the
22    Employer's website and list the vacancy in an online job
23    portal or database.
24    An Employer of a teacher who is unable to continue
25employment with the Employer because of documented illness,
26injury, or disability that occurred after being hired by the

 

 

SB3346- 7 -LRB103 38204 RPS 68338 b

1Employer under this subsection is exempt from the provisions
2of paragraph (2) for 90 school days. However, the Employer
3must on an ongoing basis comply with items (i), (ii), and (iii)
4of paragraph (2).
5    The Employer must submit documentation of its compliance
6with this subsection to the regional superintendent. Upon
7receiving satisfactory documentation from the Employer, the
8regional superintendent shall certify the Employer's
9compliance with this subsection to the Fund.
10    (c-15) If a service retirement pension is required to be
11canceled because the service retirement pensioner worked more
12than the number of days allowed under this Section in any
13school year, the service retirement pension benefit shall be
14withheld on a pro rata basis for each day worked in excess of
15the number of days allowed under this Section.
16    If a service retirement pensioner who only teaches drivers
17education courses after regular school hours works more than
18900 hours in any school year, the service retirement pension
19benefit shall be withheld on a pro rata basis for each period
20of 7.5 hours in excess of 900 hours.
21    (d) Notwithstanding Sections 1-103.1 and 17-157, the
22changes to this Section made by Public Act 90-32 apply without
23regard to whether termination of service occurred before the
24effective date of that Act and apply retroactively to August
2523, 1989.
26    Notwithstanding Sections 1-103.1 and 17-157, the changes

 

 

SB3346- 8 -LRB103 38204 RPS 68338 b

1to this Section and Section 17-106 made by Public Act 92-599
2apply without regard to whether termination of service
3occurred before June 28, 2002 (the effective date of Public
4Act 92-599).
5    Notwithstanding Sections 1-103.1 and 17-157, the changes
6to this Section made by Public Act 97-912 apply without regard
7to whether termination of service occurred before August 8,
82012 (the effective date of Public Act 97-912).
9    The changes made by this amendatory Act of the 103rd
10General Assembly are retroactive to July 1, 2020. All service
11retirement pensioners whose service retirement pensions were
12cancelled as a result of re-employment as a teacher pursuant
13to this Section during the period of July 1, 2020 through the
14effective date of this amendatory Act of the 103rd General
15Assembly shall have their overpayments recalculated on a pro
16rata basis consistent with the changes made by this amendatory
17Act of the 103rd General Assembly, and the difference between
18the initial overpayment and the recalculated overpayment shall
19be refunded to those service retirement pensioners with
20interest.
21(Source: P.A. 102-1013, eff. 5-27-22; 102-1090, eff. 6-10-22;
22103-154, eff. 6-30-23.)
 
23    Section 90. The State Mandates Act is amended by adding
24Section 8.48 as follows:
 

 

 

SB3346- 9 -LRB103 38204 RPS 68338 b

1    (30 ILCS 805/8.48 new)
2    Sec. 8.48. Exempt mandate. Notwithstanding Sections 6 and
38 of this Act, no reimbursement by the State is required for
4the implementation of any mandate created by this amendatory
5Act of the 103rd General Assembly.
 
6    Section 99. Effective date. This Act takes effect upon
7becoming law.