100TH GENERAL ASSEMBLY
State of Illinois
2017 and 2018
HB4518

 

Introduced , by Rep. C.D. Davidsmeyer

 

SYNOPSIS AS INTRODUCED:
 
40 ILCS 5/16-150.1
40 ILCS 5/16-203
30 ILCS 805/8.42 new

    Amends the Downstate Teacher Article of the Illinois Pension Code. In the provision defining "eligible employment" for the purpose of allowing a teacher to return to teaching in subject shortage areas without impairing his or her retirement status or retirement annuity, changes the ending date of the employment from no later than June 30, 2013 to no later than June 30, 2019. Provides that any benefit increase that results from the amendatory Act is excluded from the definition of "new benefit increase". Amends the State Mandates Act to require implementation without reimbursement by the State. Makes technical changes. Effective immediately.


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FISCAL NOTE ACT MAY APPLY
PENSION IMPACT NOTE ACT MAY APPLY
STATE MANDATES ACT MAY REQUIRE REIMBURSEMENT

 

 

A BILL FOR

 

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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 changing
5Sections 16-150.1 and 16-203 as follows:
 
6    (40 ILCS 5/16-150.1)
7    Sec. 16-150.1. Return to teaching in subject shortage area.
8    (a) As used in this Section, "eligible employment" means
9employment beginning on or after July 1, 2003 and ending no
10later than June 30, 2019 2013, in a subject shortage area at a
11qualified school, in a position requiring certification under
12the law governing the certification of teachers.
13    As used in this Section, "qualified school" means a public
14elementary or secondary school that meets all of the following
15requirements:
16        (1) At the time of hiring a retired teacher under this
17    Section, the school is experiencing a shortage of teachers
18    in the subject shortage area for which the teacher is
19    hired.
20        (2) The school district to which the school belongs has
21    complied with the requirements of subsection (e), and the
22    regional superintendent has certified that compliance to
23    the System.

 

 

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1        (3) If the school district to which the school belongs
2    provides group health benefits for its teachers generally,
3    substantially similar health benefits are made available
4    for teachers participating in the program under this
5    Section, without any limitations based on pre-existing
6    conditions.
7    (b) An annuitant receiving a retirement annuity under this
8Article (other than a disability retirement annuity) may engage
9in eligible employment at a qualified school without impairing
10his or her retirement status or retirement annuity, subject to
11the following conditions:
12        (1) the eligible employment does not begin within the
13    school year during which service was terminated;
14        (2) the annuitant has not received any early retirement
15    incentive under Section 16-133.3, 16-133.4, or 16-133.5;
16        (3) if the annuitant retired before age 60 and with
17    less than 34 years of service, the eligible employment does
18    not begin within the year following the effective date of
19    the retirement annuity;
20        (4) if the annuitant retired at age 60 or above or with
21    34 or more years of service, the eligible employment does
22    not begin within the 90 days following the effective date
23    of the retirement annuity; and
24        (5) before the eligible employment begins, the
25    employer notifies the System in writing of the annuitant's
26    desire to participate in the program established under this

 

 

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1    Section.
2    (c) An annuitant engaged in eligible employment in
3accordance with subsection (b) shall be deemed a participant in
4the program established under this Section for so long as he or
5she remains employed in eligible employment.
6    (d) A participant in the program established under this
7Section continues to be a retirement annuitant, rather than an
8active teacher, for all of the purposes of this Code, but shall
9be deemed an active teacher for other purposes, such as
10inclusion in a collective bargaining unit, eligibility for
11group health benefits, and compliance with the laws governing
12the employment, regulation, certification, treatment, and
13conduct of teachers.
14    With respect to an annuitant's eligible employment under
15this Section, neither employee nor employer contributions
16shall be made to the System and no additional service credit
17shall be earned. Eligible employment does not affect the
18annuitant's final average salary or the amount of the
19retirement annuity.
20    (e) Before hiring a teacher under this Section, the school
21district to which the school belongs must do the following:
22        (1) If the school district to which the school belongs
23    has honorably dismissed, within the calendar year
24    preceding the beginning of the school term for which it
25    seeks to employ a retired teacher under the program
26    established in this Section, any teachers who are legally

 

 

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1    qualified to hold positions in the subject shortage area
2    and have not yet begun to receive their retirement
3    annuities under this Article, the vacant positions must
4    first be tendered to those teachers.
5        (2) For a period of at least 90 days during the 6
6    months preceding the beginning of either the fall or spring
7    term for which it seeks to employ a retired teacher under
8    the program established in this Section, the school
9    district must, on an ongoing basis, both (i) advertise its
10    vacancies in the subject shortage area in a newspaper of
11    general circulation in the area in which the school is
12    located and in employment bulletins published by college
13    and university placement offices located near the school;
14    and (ii) search for teachers legally qualified to fill
15    those vacancies through the Illinois Education Job Bank.
16    The school district must submit documentation of its
17compliance with this subsection to the regional
18superintendent. Upon receiving satisfactory documentation from
19the school district, the regional superintendent shall certify
20the district's compliance with this subsection to the System.
21    (f) This Section applies without regard to whether the
22annuitant was in service on or after the effective date of this
23amendatory Act of the 93rd General Assembly.
24(Source: P.A. 94-129, eff. 7-7-05; 95-910, eff. 8-26-08.)
 
25    (40 ILCS 5/16-203)

 

 

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1    Sec. 16-203. Application and expiration of new benefit
2increases.
3    (a) As used in this Section, "new benefit increase" means
4an increase in the amount of any benefit provided under this
5Article, or an expansion of the conditions of eligibility for
6any benefit under this Article, that results from an amendment
7to this Code that takes effect after June 1, 2005 (the
8effective date of Public Act 94-4). "New benefit increase",
9however, does not include any benefit increase resulting from
10the changes made to Article 1 or this Article by Public Act
1195-910, Public Act 100-23, or this amendatory Act of the 100th
12General Assembly or this amendatory Act of the 100th General
13Assembly.
14    (b) Notwithstanding any other provision of this Code or any
15subsequent amendment to this Code, every new benefit increase
16is subject to this Section and shall be deemed to be granted
17only in conformance with and contingent upon compliance with
18the provisions of this Section.
19    (c) The Public Act enacting a new benefit increase must
20identify and provide for payment to the System of additional
21funding at least sufficient to fund the resulting annual
22increase in cost to the System as it accrues.
23    Every new benefit increase is contingent upon the General
24Assembly providing the additional funding required under this
25subsection. The Commission on Government Forecasting and
26Accountability shall analyze whether adequate additional

 

 

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1funding has been provided for the new benefit increase and
2shall report its analysis to the Public Pension Division of the
3Department of Insurance. A new benefit increase created by a
4Public Act that does not include the additional funding
5required under this subsection is null and void. If the Public
6Pension Division determines that the additional funding
7provided for a new benefit increase under this subsection is or
8has become inadequate, it may so certify to the Governor and
9the State Comptroller and, in the absence of corrective action
10by the General Assembly, the new benefit increase shall expire
11at the end of the fiscal year in which the certification is
12made.
13    (d) Every new benefit increase shall expire 5 years after
14its effective date or on such earlier date as may be specified
15in the language enacting the new benefit increase or provided
16under subsection (c). This does not prevent the General
17Assembly from extending or re-creating a new benefit increase
18by law.
19    (e) Except as otherwise provided in the language creating
20the new benefit increase, a new benefit increase that expires
21under this Section continues to apply to persons who applied
22and qualified for the affected benefit while the new benefit
23increase was in effect and to the affected beneficiaries and
24alternate payees of such persons, but does not apply to any
25other person, including without limitation a person who
26continues in service after the expiration date and did not

 

 

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1apply and qualify for the affected benefit while the new
2benefit increase was in effect.
3(Source: P.A. 100-23, eff. 7-6-17.)
 
4    Section 90. The State Mandates Act is amended by adding
5Section 8.42 as follows:
 
6    (30 ILCS 805/8.42 new)
7    Sec. 8.42. Exempt mandate. Notwithstanding Sections 6 and 8
8of this Act, no reimbursement by the State is required for the
9implementation of any mandate created by this amendatory Act of
10the 100th General Assembly.
 
11    Section 99. Effective date. This Act takes effect upon
12becoming law.