State of Illinois
92nd General Assembly
Legislation

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92_HB2663ham001

 










                                           LRB9204348EGfgam01

 1                    AMENDMENT TO HOUSE BILL 2663

 2        AMENDMENT NO.     .  Amend House Bill 2663  by  replacing
 3    the title with the following:
 4        "AN ACT in relation to public employee benefits."; and

 5    by  replacing  everything  after the enacting clause with the
 6    following:

 7        "Section 5.  The Illinois  Pension  Code  is  amended  by
 8    changing   Sections  17-106,  17-116.3,  17-116.4,  17-119.1,
 9    17-121, and 17-149 as follows:

10        (40 ILCS 5/17-106) (from Ch. 108 1/2, par. 17-106)
11        Sec.   17-106.   Contributor,    member    or    teacher.
12    "Contributor",  "member"  or  "teacher":   All members of the
13    teaching force of the city, including  principals,  assistant
14    principals,  the  general  superintendent  of schools, deputy
15    superintendents  of  schools,  associate  superintendents  of
16    schools, assistant and district superintendents  of  schools,
17    members  of  the  Board of Examiners, all other persons whose
18    employment requires a teaching certificate issued  under  the
19    laws   governing   the   certification   of   teachers,   any
20    educational,  administrative,  professional,  or  other staff
21    employed in a charter school operating in compliance with the
 
                            -2-            LRB9204348EGfgam01
 1    Charter Schools Law who is certified under the law  governing
 2    the  certification  of  teachers, and employees of the Board,
 3    but excluding persons contributing concurrently to any  other
 4    public  employee  pension  system  in  Illinois  for the same
 5    employment or receiving  retirement  pensions  under  another
 6    Article  of  this  Code  for  that  same  employment, persons
 7    employed on an hourly basis, and persons  receiving  pensions
 8    from the Fund who are employed temporarily by an Employer for
 9    150  100 days or less in any school year and not on an annual
10    basis.
11        In the case of a person who has been making contributions
12    and  otherwise  participating  in  this  Fund  prior  to  the
13    effective date of this amendatory Act  of  the  91st  General
14    Assembly,  and  whose  right  to  participate  in the Fund is
15    established or confirmed by this amendatory Act,  such  prior
16    participation   in  the  Fund,  including  all  contributions
17    previously made and service credits previously earned by  the
18    person, are hereby validated.
19        The  changes  made  to this Section and Section 17-149 by
20    this amendatory  Act  of  the  92nd  General  Assembly  apply
21    without  regard  to  whether  the person was in service on or
22    after  the   effective   date   of   this   amendatory   Act,
23    notwithstanding Sections 1-103.1 and 17-157.
24    (Source:  P.A.  90-32,  eff.  6-27-97;  90-566,  eff. 1-2-98;
25    91-887, eff. 7-6-00.)

26        (40 ILCS 5/17-116.3)
27        Sec. 17-116.3. Early retirement incentives.
28        (a)  A teacher who is covered by a collective  bargaining
29    agreement  shall  not  be  eligible  for the early retirement
30    incentives provided under this Section unless the  collective
31    bargaining agent and the Board of Education have entered into
32    an  agreement  under  which the agent agrees that any payment
33    for accumulated unused sick days to  which  the  employee  is
 
                            -3-            LRB9204348EGfgam01
 1    entitled  upon  withdrawal  from  service  may be paid by the
 2    Board of Education in installments over a period of up  to  5
 3    years,  and  a copy of this agreement has been filed with the
 4    Board of the Fund.
 5        To be eligible for the benefits provided in this Section,
 6    a person must:
 7             (1)  be a member of this Fund who, on or  after  May
 8        1, 1993, is (i) in active payroll status as a teacher, or
 9        (ii)  on  layoff status from such a position with a right
10        of re-employment or recall to service, or (iii) on  leave
11        of  absence  from such a position, but only if the member
12        on leave has not  been  receiving  a  disability  benefit
13        under  this Article for a continuous period of 2 years or
14        more as of the date of application;
15             (2)  have  not  previously  received  a   retirement
16        pension under this Article;
17             (3)  file with the Board and the Board of Education,
18        before  August 15, 1993, a written application requesting
19        the benefits provided in this Section  and  a  notice  of
20        resignation  from employment, which resignation must take
21        effect before September 1, 1993  unless  the  applicant's
22        retirement is delayed under subsection (e), (f), or (f-5)
23        of this Section;
24             (4)  be  eligible  to  receive  a retirement pension
25        under this Article (for which purpose any age enhancement
26        or creditable service received under this Section may  be
27        used)   and  elect  to  receive  the  retirement  pension
28        beginning no earlier than June 1, 1993 and no later  than
29        September   1,   1993   or  the  date  established  under
30        subsection  (e),  (f),  or  (f-5)  of  this  Section,  if
31        applicable;
32             (5)  have attained age 50 (without the  use  of  any
33        age enhancement or creditable service received under this
34        Section) by the effective date of the retirement pension;
 
                            -4-            LRB9204348EGfgam01
 1             (6)  have  at  least  5  years of creditable service
 2        under this Fund or any of the participating systems under
 3        the Retirement Systems Reciprocal Act (without the use of
 4        any creditable service received under  this  Section)  by
 5        the effective date of the retirement pension.
 6        (b)  An  eligible  person  may establish up to 5 years of
 7    creditable service under this Section.  In addition, for each
 8    period of creditable service established under this  Section,
 9    a  person's age at retirement shall be deemed to be increased
10    by an equal period.
11        The creditable service established under this Section may
12    be  used  for  all  purposes  under  this  Article  and   the
13    Retirement Systems Reciprocal Act, except for the purposes of
14    Section  17-116.1, and the determination of average salary or
15    compensation under this or any other Article of this Code.
16        The age enhancement established under this Section may be
17    used  for  all  purposes  under   this   Article   (including
18    calculation  of  a proportionate pension payable by this Fund
19    under the Retirement  Systems  Reciprocal  Act),  except  for
20    purposes  of  the  reversionary pension under Section 17-120,
21    and distributions required by federal law on account of  age.
22    However, age enhancement established under this Section shall
23    not  be  used  in  determining  benefits  payable under other
24    Articles of this Code under the Retirement Systems Reciprocal
25    Act.
26        (c)  For all creditable service  established  under  this
27    Section,  the  employer  must  pay  to  the  Fund an employer
28    contribution consisting of 12% of the member's highest annual
29    full-time rate of compensation for each  year  of  creditable
30    service granted under this Section.
31        The  employer  contribution  shall be paid to the Fund in
32    one of the following ways:  (i) in a single sum at  the  time
33    of   the   member's   retirement,  (ii)  in  equal  quarterly
34    installments over a period  of  5  years  from  the  date  of
 
                            -5-            LRB9204348EGfgam01
 1    retirement,  or (iii) subject to the approval of the Board of
 2    the Fund, in unequal installments over a period  of  no  more
 3    than  5  years  from the date of retirement, as provided in a
 4    payment plan designed by the Fund to accommodate the needs of
 5    the employer.  The employer's failure to  make  the  required
 6    contributions in a timely manner shall not affect the payment
 7    of the retirement pension.
 8        For   all   creditable  service  established  under  this
 9    Section, the employee  must  pay  to  the  Fund  an  employee
10    contribution  consisting of 4% of the member's highest annual
11    salary rate used  in  the  determination  of  the  retirement
12    pension  for  each  year  of creditable service granted under
13    this Section.  The employee contribution  shall  be  deducted
14    from the retirement annuity in 24 monthly installments.
15        (d)  An annuitant who has received any age enhancement or
16    creditable  service  under  this Section and whose pension is
17    suspended or cancelled under Section 17-149 or  17-150  shall
18    thereby  forfeit  the age enhancement and creditable service.
19    The forfeiture of creditable service  under  this  subsection
20    shall  not  entitle  the employer to a refund of the employer
21    contribution paid under this Section, nor to  forgiveness  of
22    any  part  of  that  contribution  that  remains  unpaid. The
23    forfeiture of creditable service under this subsection  shall
24    not  entitle  the  employee  to  a  refund  of  the  employee
25    contribution paid under this Section.
26        (e)  If the number of employees of an employer that apply
27    for  early retirement under this Section exceeds 30% of those
28    eligible, the employer may require that, for any  or  all  of
29    the  number of applicants in excess of that 30%, the starting
30    date of the retirement pension enhanced under this Section be
31    no earlier than June 1, 1994 and no later than  September  1,
32    1994.   The right to have the retirement pension begin before
33    June 1, 1994 shall be allocated among the applicants  on  the
34    basis of seniority in the service of that employer.
 
                            -6-            LRB9204348EGfgam01
 1        This  delay  applies only to persons who are applying for
 2    early retirement incentives under this Section, and does  not
 3    prevent  a  person  whose  application  for  early retirement
 4    incentives has been withdrawn from  beginning  to  receive  a
 5    retirement pension on the earliest date upon which the person
 6    is otherwise eligible under this Article.
 7        (f)  For  a  member  who is notified after July 30, 1993,
 8    but before November 29, 1993, that he or she  will  become  a
 9    supernumerary  or  reserve  teacher  in  the 1993-1994 school
10    year:  (1)  the  August  15,  1993  application  deadline  in
11    subdivision (a)(3) of this Section is  extended  to  December
12    14,  1993,  (2) the September 1, 1993 deadline in subdivision
13    (a)(4) of this Section is extended to December 14, 1993,  and
14    (3)  the  member  shall not be included in the calculation of
15    the 30% under subsection (e) and is not subject to  delay  in
16    retirement under that subsection.
17        (f-5)  For  a  member  who  is  notified after January 1,
18    1994, but before March 1, 1994, that he or she will become  a
19    reserve  teacher in the 1993-1994 school year: (1) the August
20    15, 1993 application deadline in subdivision (a)(3)  of  this
21    Section  is  extended  to April 1, 1994; (2) the September 1,
22    1993 deadline  in  subdivision  (a)(4)  of  this  Section  is
23    extended  to  April  1, 1994; and (3) the member shall not be
24    included in the calculation of the 30% under  subsection  (e)
25    and  is  not  subject  to  delay  in  retirement  under  that
26    subsection.
27        (g)  A member who receives any early retirement incentive
28    under  Section 17-116.4, 17-116.5 or 17-116.6 may not receive
29    any early retirement incentive under this Section.
30        (h)  The version of this Section included in  Public  Act
31    88-85  is  intended  to and shall control over the version of
32    this Section included in Public  Act  88-89,  notwithstanding
33    Section 6 of the Statute on Statutes.  All persons qualifying
34    for  early  retirement incentives under this Section shall be
 
                            -7-            LRB9204348EGfgam01
 1    subject to the limitations and restrictions provided  in  the
 2    version  of  this  Section  included  in Public Act 88-85, as
 3    amended by Public Act 88-511.
 4        (i)  In addition to the benefits provided under the other
 5    provisions of this Section, every person who  receives  early
 6    retirement  benefits  under  this  Section is entitled to one
 7    additional year of creditable  service  and  a  corresponding
 8    year  of  additional age enhancement, for which no additional
 9    contribution is required.  Every person  who  receives  early
10    retirement  benefits  under  this  Section  whose  retirement
11    annuity  has been calculated on the basis of a 4-year average
12    salary is also entitled to have the annuity  recalculated  on
13    the basis of the average salary for the 3 highest consecutive
14    years within the last 10 years of service.
15        The  additional  benefits provided by this subsection (i)
16    shall begin to accrue on  the  date  the  retirement  annuity
17    began,   notwithstanding  Section  17-157.   The  Fund  shall
18    recalculate all annuities originally  calculated  under  this
19    Section  to  reflect  the  additional benefits provided under
20    this subsection and shall pay to the annuitant in a lump  sum
21    the  difference  between the annuity payments paid before the
22    date of the recalculation  and  the  recalculated  amount  of
23    those payments.
24    (Source: P.A. 88-85; 88-89; 88-511; 88-670, eff. 12-2-94.)

25        (40 ILCS 5/17-116.4)
26        Sec. 17-116.4. Early retirement incentives.
27        (a)  A  teacher who is covered by a collective bargaining
28    agreement shall not be  eligible  for  the  early  retirement
29    incentives  provided under this Section unless the collective
30    bargaining agent and the Board of Education have entered into
31    an agreement under which the agent agrees  that  any  payment
32    for  accumulated  unused  sick  days to which the employee is
33    entitled upon withdrawal from service  may  be  paid  by  the
 
                            -8-            LRB9204348EGfgam01
 1    Board  of  Education in installments over a period of up to 5
 2    years, and a copy of this agreement has been filed  with  the
 3    Board of the Fund.
 4        To be eligible for the benefits provided in this Section,
 5    a person must:
 6             (1)  be  a  member of this Fund who, on or after May
 7        1, 1994, is (i) in active payroll status as a teacher, or
 8        (ii) on layoff status from such a position with  a  right
 9        of  re-employment or recall to service, or (iii) on leave
10        of absence from such a position, but only if  the  member
11        on  leave  has  not  been  receiving a disability benefit
12        under this Article for a continuous period of 2 years  or
13        more as of the date of application;
14             (2)  have   not  previously  received  a  retirement
15        pension under this Article;
16             (3)  file with the Board and the Board of Education,
17        before March 1, 1994, a  written  application  requesting
18        the  benefits  provided  in  this Section and a notice of
19        resignation from employment, which resignation must  take
20        effect  no  earlier  than  June 1, 1994 and no later than
21        September 1, 1994 unless the  applicant's  retirement  is
22        delayed under subsection (e) of this Section;
23             (4)  be  eligible  to  receive  a retirement pension
24        under this Article (for which purpose any age enhancement
25        or creditable service received under this Section may  be
26        used)   and  elect  to  receive  the  retirement  pension
27        beginning no earlier than June 1, 1994 and no later  than
28        September   1,   1994   or  the  date  established  under
29        subsection (e) of this Section, if applicable;
30             (5)  have attained age 50 (without the  use  of  any
31        age enhancement or creditable service received under this
32        Section)  after  September  1,  1993  and  no  later than
33        September 1, 1994;
34             (6)  have at least 5  years  of  creditable  service
 
                            -9-            LRB9204348EGfgam01
 1        under this Fund or any of the participating systems under
 2        the Retirement Systems Reciprocal Act (without the use of
 3        any  creditable  service  received under this Section) by
 4        the effective date of the retirement pension.
 5        (b)  An eligible person may establish up to  5  years  of
 6    creditable service under this Section.  In addition, for each
 7    period  of creditable service established under this Section,
 8    a person's age at retirement shall be deemed to be  increased
 9    by an equal period.
10        The creditable service established under this Section may
11    be   used  for  all  purposes  under  this  Article  and  the
12    Retirement Systems Reciprocal Act, except for the purposes of
13    Section 17-116.1, and the determination of average salary  or
14    compensation under this or any other Article of this Code.
15        The age enhancement established under this Section may be
16    used   for   all   purposes  under  this  Article  (including
17    calculation of a proportionate pension payable by  this  Fund
18    under  the  Retirement  Systems  Reciprocal  Act), except for
19    purposes of the reversionary pension  under  Section  17-120,
20    and  distributions required by federal law on account of age.
21    However, age enhancement established under this Section shall
22    not be used  in  determining  benefits  payable  under  other
23    Articles of this Code under the Retirement Systems Reciprocal
24    Act.
25        (c)  For  all  creditable  service established under this
26    Section, the employer  must  pay  to  the  Fund  an  employer
27    contribution consisting of 12% of the member's highest annual
28    full-time  rate  of  compensation for each year of creditable
29    service granted under this Section.
30        The employer contribution shall be paid to  the  Fund  in
31    one  of  the following ways:  (i) in a single sum at the time
32    of  the  member's  retirement,  (ii)   in   equal   quarterly
33    installments  over  a  period  of  5  years  from the date of
34    retirement, or (iii) subject to the approval of the Board  of
 
                            -10-           LRB9204348EGfgam01
 1    the  Fund,  in  unequal installments over a period of no more
 2    than 5 years from the date of retirement, as  provided  in  a
 3    payment plan designed by the Fund to accommodate the needs of
 4    the  employer.   The  employer's failure to make the required
 5    contributions in a timely manner shall not affect the payment
 6    of the retirement pension.
 7        For  all  creditable  service  established   under   this
 8    Section,  the  employee  must  pay  to  the  Fund an employee
 9    contribution consisting of 4% of the member's highest  annual
10    salary  rate  used  in  the  determination  of the retirement
11    pension for each year of  creditable  service  granted  under
12    this  Section.   The  employee contribution shall be deducted
13    from the retirement annuity in 24 monthly installments.
14        (d)  An annuitant who has received any age enhancement or
15    creditable service under this Section and  whose  pension  is
16    suspended  or  cancelled under Section 17-149 or 17-150 shall
17    thereby forfeit the age enhancement and  creditable  service.
18    The  forfeiture  of  creditable service under this subsection
19    shall not entitle the employer to a refund  of  the  employer
20    contribution  paid  under this Section, nor to forgiveness of
21    any part  of  that  contribution  that  remains  unpaid.  The
22    forfeiture  of creditable service under this subsection shall
23    not  entitle  the  employee  to  a  refund  of  the  employee
24    contribution paid under this Section.
25        (e)  If the number of employees of an employer that apply
26    for early retirement under this Section exceeds 30% of  those
27    eligible,  the  employer  may require that, for any or all of
28    the number of applicants in excess of that 30%, the  starting
29    date of the retirement pension enhanced under this Section be
30    no  earlier  than June 1, 1995 and no later than September 1,
31    1995.  The right to have the retirement pension begin  before
32    June  1,  1995 shall be allocated among the applicants on the
33    basis of seniority in the service of that employer.
34        This delay applies only to persons who are  applying  for
 
                            -11-           LRB9204348EGfgam01
 1    early  retirement incentives under this Section, and does not
 2    prevent a  person  whose  application  for  early  retirement
 3    incentives  has  been  withdrawn  from beginning to receive a
 4    retirement pension on the earliest date upon which the person
 5    is otherwise eligible under this Article.
 6        (f)  A member who receives any early retirement incentive
 7    under Section 17-116.3 may not receive any  early  retirement
 8    incentive under this Section.
 9        (g)  Notwithstanding  Section  17-157,  a  person  who is
10    receiving early retirement benefits under  this  Section  may
11    establish service credit for a period of up to 3 weeks during
12    the  month  of  January,  1968,  during  which the person was
13    prevented from working due  to  civil  unrest  or  a  wildcat
14    strike.  A person wishing to establish this credit must apply
15    in  writing  to  the Board within 30 days after the effective
16    date of this amendatory Act of the 92nd General Assembly  and
17    pay  to  the  Fund an employee contribution calculated at the
18    rate and salary applicable to the employee at  the  time  for
19    which  credit is being established, without interest.  When a
20    person  establishes  additional  service  credit  under  this
21    subsection, the Fund shall recalculate the annuity originally
22    granted under this Section to reflect the  additional  credit
23    and  shall  pay to the annuitant in a lump sum the difference
24    between the annuity payments paid  before  the  date  of  the
25    recalculation and the recalculated amount of those payments.
26    (Source: P.A. 88-85.)

27        (40 ILCS 5/17-119.1)
28        Sec. 17-119.1.  Optional increase in retirement annuity.
29        (a)  A  member  of the Fund may qualify for the augmented
30    rate under subdivision (b)(3) of Section 17-116 for all years
31    of creditable service earned before July 1,  1998  by  making
32    the optional contribution specified in subsection (b); except
33    that  a  member  who retires on or after July 1, 1998 with at
 
                            -12-           LRB9204348EGfgam01
 1    least 30 years of creditable service at retirement  qualifies
 2    for  the augmented rate without making any contribution under
 3    subsection (b).  Any member who retires on or after  July  1,
 4    1998  and before the effective date of this amendatory Act of
 5    the  92nd  General  Assembly  with  at  least  30  years   of
 6    creditable  service  shall  be  paid  a lump sum equal to the
 7    amount he or she would have received under the augmented rate
 8    minus the amount he or she actually received.  A  member  may
 9    not  elect  to  qualify  for  the  augmented  rate for only a
10    portion of his or her creditable service earned  before  July
11    1, 1998.
12        (b)  The contribution shall be an amount equal to 1.0% of
13    the  member's highest salary rate in the 4 consecutive school
14    years immediately prior to but not including the school  year
15    in  which the application occurs, multiplied by the number of
16    years of creditable service earned by the member before  July
17    1, 1998 or 20, whichever is less.  This contribution shall be
18    reduced by 1.0% of that salary rate for every 3 full years of
19    creditable  service earned by the member after June 30, 1998.
20    The contribution shall be further reduced at the rate of  25%
21    of  the  contribution  (as reduced for service after June 30,
22    1998) for each year of the member's total creditable  service
23    in  excess  of  34  years.  The contribution shall not in any
24    event exceed 20% of that salary rate.
25        The member shall pay  to  the  Fund  the  amount  of  the
26    contribution  as  calculated at the time of application under
27    this Section.  The  amount  of  the  contribution  determined
28    under  this  subsection  shall be recalculated at the time of
29    retirement, and if the Fund determines that the  amount  paid
30    by the member exceeds the recalculated amount, the Fund shall
31    refund  the  difference  to  the member with regular interest
32    from the date of payment to the date of refund.
33        The contribution required by  this  subsection  shall  be
34    paid  in one of the following ways or in a combination of the
 
                            -13-           LRB9204348EGfgam01
 1    following ways that does not extend over more than 5 years:
 2             (i)  in  a  lump  sum  on  or  before  the  date  of
 3        retirement;
 4             (ii)  in substantially  equal  installments  over  a
 5        period of time not to exceed 5 years, as a deduction from
 6        salary in accordance with Section 17-130.2;
 7             (iii)  if  the  member  becomes  an annuitant before
 8        June   30,   2003,   in   substantially   equal   monthly
 9        installments over a 24-month period, by a deduction  from
10        the annuitant's monthly benefit.
11        (c)  If  the  member  fails to make the full contribution
12    under this Section in a timely  fashion,  the  payments  made
13    under  this  Section shall be refunded to the member, without
14    interest.   If  the  member  dies  before  making  the   full
15    contribution,  the  payments made under this Section shall be
16    refunded to the member's designated beneficiary.
17        (d)  For purposes of this Section and subsection  (b)  of
18    Section  17-116, optional creditable service established by a
19    member shall be deemed to have been earned at the time of the
20    employment or other qualifying event upon which  the  service
21    is  based, rather than at the time the credit was established
22    in this Fund.
23        (e)  The contributions required under  this  Section  are
24    the  responsibility  of  the  teacher  and  not the teacher's
25    employer.  However, an employer of teachers  3ay,  after  the
26    effective  date  of this amendatory Act of 1998, specifically
27    agree, through collective bargaining or  otherwise,  to  make
28    the contributions required by this Section on behalf of those
29    teachers.
30    (Source: P.A. 90-582, eff. 5-27-98; 91-17, eff. 6-4-99.)

31        (40 ILCS 5/17-121) (from Ch. 108 1/2, par. 17-121)
32        Sec.   17-121.   Survivor's  and  Children's  pensions  -
33    Eligibility.  A  surviving  spouse  of  a  teacher  shall  be
 
                            -14-           LRB9204348EGfgam01
 1    entitled  to  a  survivor's pension only if he was married to
 2    the contributor for at least 1 1/2 years immediately prior to
 3    his death or retirement, whichever first occurs, and also  on
 4    the date of the last termination of his service.
 5        If  the surviving spouse is under age 50 and there are no
 6    eligible minor children born to or  legally  adopted  by  the
 7    contributor   and   his  surviving  spouse,  payment  of  the
 8    survivor's pension shall  begin  when  the  surviving  spouse
 9    attains age 50.
10        Remarriage  of the surviving spouse prior to September 1,
11    1983  while  in  receipt  of  a  survivor's   pension   shall
12    permanently  terminate  payment  thereof,  regardless  of any
13    subsequent  change  in  marital  status;  however,  beginning
14    September 1, 1983, remarriage of  a  surviving  spouse  after
15    attainment  of  age  55  shall  not  terminate the survivor's
16    pension.
17        A surviving spouse whose pension  was  terminated  on  or
18    after September 1, 1983 due to remarriage after attainment of
19    age  55,  and  who  applies for reinstatement of that pension
20    before January 1, 1990, shall be entitled to have the pension
21    reinstated effective January 1, 1990.
22        A surviving spouse of a member or  annuitant  under  this
23    Fund who is also a dependent beneficiary under the provisions
24    of  Section  16-140  is  eligible for a reciprocal survivor's
25    pension, provided  that  any  refund  of  survivor's  pension
26    contributions  is  repaid to the Fund and application is made
27    within 30 days after the effective date  of  this  amendatory
28    Act of the 92nd General Assembly.
29    (Source: P.A. 86-273.)

30        (40 ILCS 5/17-149) (from Ch. 108 1/2, par. 17-149)
31        Sec.  17-149.  Cancellation  of  pensions.  If any person
32    receiving a service or disability retirement pension from the
33    Fund is re-employed as a teacher by an Employer, the  pension
 
                            -15-           LRB9204348EGfgam01
 1    shall  be  cancelled on the date the re-employment begins, or
 2    on the first day of a payroll period for which service credit
 3    was validated,  whichever  is  earlier.   However,  beginning
 4    August  23,  1989, the pension shall not be cancelled in case
 5    of  a  service  retirement  pensioner  who   is   temporarily
 6    re-employed  for not more than 150 100 days during any school
 7    year or on an hourly basis, provided the pensioner  does  not
 8    receive salary in any school year of an amount more than that
 9    payable to a substitute teacher for 150 100 days' employment.
10    A service retirement pensioner who is temporarily re-employed
11    for  not  more than 150 100 days during any school year or on
12    an hourly basis shall be entitled, at the end of  the  school
13    year,  to  a  refund  of  any  contributions made to the Fund
14    during that school year.
15        If the pensioner does receive salary from an Employer  in
16    any  school  year for more than 150 100 days' employment, the
17    pensioner shall be deemed to have returned to service on  the
18    first  day  of  employment  as  a  pensioner-substitute.  The
19    pensioner shall  reimburse  the  Fund  for  pension  payments
20    received  after  the  return  to service and shall pay to the
21    Fund the participant's contributions  prescribed  in  Section
22    17-130 of this Article.
23        If  the  date  of  re-employment  occurs  within 5 school
24    months after the date of previous  retirement,  exclusive  of
25    any  vacation period, the member shall be deemed to have been
26    out of service only temporarily and not permanently  retired.
27    Such  person  shall  be  entitled to pension payments for the
28    time he could have been employed as a  teacher  and  received
29    salary,  but  shall  not be entitled to pension for or during
30    the summer vacation prior to his return to service.
31        When the member again retires on  pension,  the  time  of
32    service and the money contributed by him during re-employment
33    shall  be  added  to  the time and money previously credited.
34    Such person must acquire 3 consecutive  years  of  additional
 
                            -16-           LRB9204348EGfgam01
 1    contributing  service before he may retire again on a pension
 2    at a rate and under conditions other than those in  force  or
 3    attained at the time of his previous retirement.
 4        Notwithstanding  Sections 1-103.1 and 17-157, the changes
 5    to this Section made by this amendatory  Act  of  1997  shall
 6    apply  without  regard  to  whether  termination  of  service
 7    occurred before the effective date of this amendatory Act and
 8    shall apply retroactively to August 23, 1989.
 9    (Source: P.A. 90-32, eff. 6-27-97; 90-566, eff. 1-2-98.)

10        Section  90.  The State Mandates Act is amended by adding
11    Section 8.25 as follows:

12        (30 ILCS 805/8.25 new)
13        Sec. 8.25. Exempt mandate.   Notwithstanding  Sections  6
14    and  8 of this Act, no reimbursement by the State is required
15    for  the  implementation  of  any  mandate  created  by  this
16    amendatory Act of the 92nd General Assembly.

17        Section 99.  Effective date.  This Act takes effect  upon
18    becoming law.".

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