102ND GENERAL ASSEMBLY
State of Illinois
2021 and 2022
HB5472

 

Introduced 1/31/2022, by Rep. Janet Yang Rohr

 

SYNOPSIS AS INTRODUCED:
 
40 ILCS 5/16-118  from Ch. 108 1/2, par. 16-118
40 ILCS 5/17-149  from Ch. 108 1/2, par. 17-149

    Amends the Illinois Pension Code. In the Downstate Teacher Article, provides that beginning July 1, 2021 through June 30, 2022, to assist with addressing the substitute teacher shortage that has been exacerbated by the ongoing COVID-19 global pandemic and public health emergency, an annuitant may accept employment as a teacher without impairing his or her retirement status if that employment is not within the school year during which service was terminated and does not exceed 140 paid days (rather than 120 paid days) or 700 paid hours (rather than 600 paid hours) in each school year, but not more than 100 paid days in the same classroom. In the Chicago Teacher Article, provides that the service retirement pension shall not be cancelled in the case of a service retirement pensioner who is re-employed as a teacher or administrator (rather than 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 or administrator (rather than a teacher) for compensation on more than 120 days in a school year or (2) in the case of a person who retires with at least 5 years of service as a principal or administrator, does not work as a teacher or administrator for compensation on more than 140 days in a school year. Removes a limitation on the amount of gross compensation a service retirement pensioner may receive for such re-employment without having the service retirement pension cancelled. Effective immediately.


LRB102 26096 RPS 35576 b

 

 

A BILL FOR

 

HB5472LRB102 26096 RPS 35576 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 Sections 16-118 and 17-149 as follows:
 
6    (40 ILCS 5/16-118)  (from Ch. 108 1/2, par. 16-118)
7    Sec. 16-118. Retirement. "Retirement": Entry upon a
8retirement annuity or receipt of a single-sum retirement
9benefit granted under this Article after termination of active
10service as a teacher.
11    (a) An annuitant receiving a retirement annuity other than
12a disability retirement annuity may accept employment as a
13teacher from a school board or other employer specified in
14Section 16-106 without impairing retirement status, if that
15employment:
16        (1) is not within the school year during which service
17    was terminated; and
18        (2) does not exceed the following:
19            (i) before July 1, 2001, 100 paid days or 500 paid
20        hours in any school year;
21            (ii) during the period beginning July 1, 2001
22        through June 30, 2011, 120 paid days or 600 paid hours
23        in each school year;

 

 

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1            (iii) during the period beginning July 1, 2011
2        through June 30, 2018, 100 paid days or 500 paid hours
3        in each school year;
4            (iv) beginning July 1, 2018 through June 30, 2021
5        2023, 120 paid days or 600 paid hours in each school
6        year, but not more than 100 paid days in the same
7        classroom; and
8            (v) beginning July 1, 2021 through June 30, 2022,
9        to assist with addressing the substitute teacher
10        shortage that has been exacerbated by the ongoing
11        COVID-19 global pandemic and public health emergency,
12        140 paid days or 700 paid hours in each school year,
13        but not more than 100 paid days in the same classroom;
14            (vi) beginning July 1, 2022 through June 30, 2023,
15        120 paid days or 600 paid hours in each school year,
16        but not more than 100 paid days in the same classroom;
17        and
18            (vii) (v) beginning July 1, 2023, 100 paid days or
19        500 paid hours in each school year.
20    Where such permitted employment is partly on a daily and
21partly on an hourly basis, a day shall be considered as 5
22hours.
23    (b) Subsection (a) does not apply to an annuitant who
24returns to teaching under the program established in Section
2516-150.1, for the duration of his or her participation in that
26program.

 

 

HB5472- 3 -LRB102 26096 RPS 35576 b

1(Source: P.A. 101-645, eff. 6-26-20; 102-537, eff. 8-20-21.)
 
2    (40 ILCS 5/17-149)  (from Ch. 108 1/2, par. 17-149)
3    Sec. 17-149. Cancellation of pensions.
4    (a) If any person receiving a disability retirement
5pension from the Fund is re-employed as a teacher by an
6Employer, the pension shall be cancelled on the date the
7re-employment begins, or on the first day of a payroll period
8for which service credit was validated, whichever is earlier.
9    (b) If any person receiving a service retirement pension
10from the Fund is re-employed as a teacher on a permanent or
11annual basis by an Employer, the pension shall be cancelled on
12the date the re-employment begins, or on the first day of a
13payroll period for which service credit was validated,
14whichever is earlier. However, subject to the limitations and
15requirements of subsection (c-5), the pension shall not be
16cancelled in the case of a service retirement pensioner who is
17re-employed on a temporary and non-annual basis or on an
18hourly basis.
19    (c) If the date of re-employment on a permanent or annual
20basis occurs within 5 school months after the date of previous
21retirement, exclusive of any vacation period, the member shall
22be deemed to have been out of service only temporarily and not
23permanently retired. Such person shall be entitled to pension
24payments for the time he could have been employed as a teacher
25and received salary, but shall not be entitled to pension for

 

 

HB5472- 4 -LRB102 26096 RPS 35576 b

1or during the summer vacation prior to his return to service.
2    When the member again retires on pension, the time of
3service and the money contributed by him during re-employment
4shall be added to the time and money previously credited. Such
5person must acquire 3 consecutive years of additional
6contributing service before he may retire again on a pension
7at a rate and under conditions other than those in force or
8attained at the time of his previous retirement.
9    (c-5) For school years beginning on or after July 1, 2019,
10the service retirement pension shall not be cancelled in the
11case of a service retirement pensioner who is re-employed as a
12teacher or administrator on a temporary and non-annual basis
13or on an hourly basis, so long as the person (1) does not work
14as a teacher or administrator for compensation on more than
15120 days in a school year or (2) does not accept gross
16compensation for the re-employment in a school year in excess
17of (i) $30,000 or (ii) in the case of a person who retires with
18at least 5 years of service as a principal or administrator,
19does not work as a teacher or administrator for compensation
20on more than 140 days in a school year , an amount that is equal
21to the daily rate normally paid to retired principals
22multiplied by 100. These limitations apply only to school
23years that begin on or after July 1, 2019. Such re-employment
24does not require contributions, result in service credit, or
25constitute active membership in the Fund.
26    The service retirement pension shall not be cancelled in

 

 

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1the case of a service retirement pensioner who is re-employed
2as a teacher on a temporary and non-annual basis or on an
3hourly basis, so long as the person (1) does not work as a
4teacher for compensation on more than 100 days in a school year
5or (2) does not accept gross compensation for the
6re-employment in a school year in excess of (i) $30,000 or (ii)
7in the case of a person who retires with at least 5 years of
8service as a principal, an amount that is equal to the daily
9rate normally paid to retired principals multiplied by 100.
10These limitations apply only to school years that begin on or
11after August 8, 2012 (the effective date of Public Act 97-912)
12and before July 1, 2019. Such re-employment does not require
13contributions, result in service credit, or constitute active
14membership in the Fund.
15    Notwithstanding the 120-day limit set forth in item (1) of
16this subsection (c-5), the service retirement pension shall
17not be cancelled in the case of a service retirement pensioner
18who teaches only driver education courses after regular school
19hours and does not teach any other subject area, so long as the
20person does not work as a teacher for compensation for more
21than 900 hours in a school year. The $30,000 limit set forth in
22subitem (i) of item (2) of this subsection (c-5) shall apply to
23a service retirement pensioner who teaches only driver
24education courses after regular school hours and does not
25teach any other subject area.
26    To be eligible for such re-employment without cancellation

 

 

HB5472- 6 -LRB102 26096 RPS 35576 b

1of pension, the pensioner must notify the Fund and the Board of
2Education of his or her intention to accept re-employment
3under this subsection (c-5) before beginning that
4re-employment (or if the re-employment began before the
5effective date of this amendatory Act, then within 30 days
6after 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
13excess gross compensation for such re-employment in any school
14year that begins on or after August 8, 2012 (the effective date
15of Public Act 97-912), the service retirement pension shall
16thereupon be cancelled.
17    If the pensioner who only teaches drivers education
18courses after regular school hours works more than 900 hours
19or accepts excess gross compensation for such re-employment in
20any school year that begins on or after the effective date of
21this amendatory Act of the 99th General Assembly, the service
22retirement pension shall thereupon be cancelled.
23    If the pensioner works more than 120 days or accepts
24excess gross compensation for such re-employment in any school
25year that begins on or after July 1, 2019, the service
26retirement pension shall thereupon be cancelled.

 

 

HB5472- 7 -LRB102 26096 RPS 35576 b

1    The Board of the Fund shall adopt rules for the
2implementation and administration of this subsection.
3    (d) Notwithstanding Sections 1-103.1 and 17-157, the
4changes to this Section made by Public Act 90-32 apply without
5regard to whether termination of service occurred before the
6effective date of that Act and apply retroactively to August
723, 1989.
8    Notwithstanding Sections 1-103.1 and 17-157, the changes
9to this Section and Section 17-106 made by Public Act 92-599
10apply without regard to whether termination of service
11occurred before the effective date of that Act.
12    Notwithstanding Sections 1-103.1 and 17-157, the changes
13to this Section made by this amendatory Act of the 97th General
14Assembly apply without regard to whether termination of
15service occurred before the effective date of this amendatory
16Act.
17(Source: P.A. 101-340, eff. 8-9-19.)
 
18    Section 99. Effective date. This Act takes effect upon
19becoming law.