101ST GENERAL ASSEMBLY
State of Illinois
2019 and 2020
SB1734

 

Introduced 2/15/2019, by Sen. Omar Aquino

 

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

    Amends the Chicago Teacher Article of the Illinois Pension Code. Provides that for school years beginning on or after July 1, 2019 and ending before June 30, 2022, the service retirement pension shall not be cancelled in the case of a service retirement pensioner who is re-employed as a teacher on a temporary and non-annual basis or on an hourly basis, so long as the person (1) does not work as a teacher for compensation on more than 120 days (instead of 100 days) in a school year or (2) does not accept gross compensation for the re-employment in a school year in excess of (i) $36,000 (instead of $30,000) or (ii) in the case of a person who retires with at least 5 years of service as a principal, an amount that is equal to the daily rate normally paid to retired principals multiplied by 120 (instead of 100). Makes conforming changes. Effective immediately.


LRB101 08893 RPS 53983 b

FISCAL NOTE ACT MAY APPLY
PENSION IMPACT NOTE ACT MAY APPLY

 

 

A BILL FOR

 

SB1734LRB101 08893 RPS 53983 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 changing
5Section 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 pension
9from the Fund is re-employed as a teacher by an Employer, the
10pension shall be cancelled on the date the re-employment
11begins, or on the first day of a payroll period for which
12service 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), the pension shall not be
20cancelled in the case of a service retirement pensioner who is
21re-employed on a temporary and non-annual basis or on an hourly
22basis.
23    (c) If the date of re-employment on a permanent or annual

 

 

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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 at
13a rate and under conditions other than those in force or
14attained at the time of his previous retirement.
15    (c-5) The service retirement pension shall not be cancelled
16in the case of a service retirement pensioner who is
17re-employed as a teacher on a temporary and non-annual basis or
18on an hourly basis, so long as the person (1) does not work as a
19teacher for compensation on more than 100 days in a school year
20or (2) does not accept gross compensation for the re-employment
21in a school year in excess of (i) $30,000 or (ii) in the case of
22a person who retires with at least 5 years of service as a
23principal, an amount that is equal to the daily rate normally
24paid to retired principals multiplied by 100. These limitations
25apply only to school years that begin on or after August 8,
262012 (the effective date of Public Act 97-912) and end before

 

 

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1July 1, 2019 or that begin after June 30, 2022. Such
2re-employment does not require contributions, result in
3service credit, or constitute active membership in the Fund.
4    For school years beginning July 1, 2019 and ending before
5June 30, 2022, the service retirement pension shall not be
6cancelled in the case of a service retirement pensioner who is
7re-employed as a teacher on a temporary and non-annual basis or
8on an hourly basis, so long as the person (A) does not work as a
9teacher for compensation on more than 120 days in a school year
10or (B) does not accept gross compensation for the re-employment
11in a school year in excess of (i) $36,000 or (ii) in the case of
12a person who retires with at least 5 years of service as a
13principal, an amount that is equal to the daily rate normally
14paid to retired principals multiplied by 120.
15    Notwithstanding the 100-day limit set forth in item (1) of
16this subsection (c-5) or the 120-day limit set forth in item
17(A) of this subsection (c-5), whichever is applicable, the
18service retirement pension shall not be cancelled in the case
19of a service retirement pensioner who teaches only driver
20education courses after regular school hours and does not teach
21any other subject area, so long as the person does not work as
22a teacher for compensation for more than 900 hours in a school
23year. The $30,000 limit set forth in subitem (i) of item (2) of
24this subsection (c-5) shall apply to a service retirement
25pensioner who teaches only driver education courses after
26regular school hours and does not teach any other subject area.

 

 

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1    To be eligible for such re-employment without cancellation
2of pension, the pensioner must notify the Fund and the Board of
3Education of his or her intention to accept re-employment under
4this subsection (c-5) before beginning that re-employment (or
5if the re-employment began before the effective date of this
6amendatory Act, then within 30 days after that effective date).
7    An Employer must certify to the Fund the temporary and
8non-annual or hourly status and the compensation of each
9pensioner re-employed under this subsection at least
10quarterly, and when the pensioner is approaching the earnings
11limitation under this subsection.
12    If the pensioner works more than 100 days or accepts excess
13gross compensation for such re-employment in any school year
14that (i) begins on or after August 8, 2012 (the effective date
15of Public Act 97-912) and ends before July 1, 2019 or (ii)
16begins after June 30, 2022, the service retirement pension
17shall thereupon be cancelled.
18    If the pensioner works more than 120 days or accepts excess
19gross compensation for such re-employment in any school year
20that begins on or after July 1, 2019 and ends before June 30,
212022, the service retirement pension shall thereupon be
22cancelled.
23    If the pensioner who only teaches drivers education courses
24after regular school hours works more than 900 hours or accepts
25excess gross compensation for such re-employment in any school
26year that begins on or after the effective date of this

 

 

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1amendatory Act of the 99th General Assembly, the service
2retirement pension shall thereupon be cancelled.
3    The Board of the Fund shall adopt rules for the
4implementation and administration of this subsection.
5    (d) Notwithstanding Sections 1-103.1 and 17-157, the
6changes to this Section made by Public Act 90-32 apply without
7regard to whether termination of service occurred before the
8effective date of that Act and apply retroactively to August
923, 1989.
10    Notwithstanding Sections 1-103.1 and 17-157, the changes
11to this Section and Section 17-106 made by Public Act 92-599
12apply without regard to whether termination of service occurred
13before the effective date of that Act.
14    Notwithstanding Sections 1-103.1 and 17-157, the changes
15to this Section made by this amendatory Act of the 97th General
16Assembly apply without regard to whether termination of service
17occurred before the effective date of this amendatory Act.
18(Source: P.A. 99-176, eff. 7-29-15; 99-786, eff. 8-12-16.)
 
19    Section 99. Effective date. This Act takes effect upon
20becoming law.