Public Act 094-0539
 
SB1660 Enrolled LRB094 05388 AMC 35433 b

    AN ACT in relation to public employee benefits.
 
    Be it enacted by the People of the State of Illinois,
represented in the General Assembly:
 
    Section 5. The Illinois Pension Code is amended by changing
Sections 16-149, 16-149.1, and 16-149.2 and adding Section
16-149.6 as follows:
 
    (40 ILCS 5/16-149)  (from Ch. 108 1/2, par. 16-149)
    Sec. 16-149. Disability benefit.
    (a) A disability benefit is payable to a member who was in
active service on or after June 30, 1977 and has at least 3
years of creditable service. Part-time and substitute teachers
who are in active service on or after July 1, 1990 must have
worked as a teacher for at least 340 hours in either the school
year in which the disability occurs or in the preceding school
year.
    The benefit is payable upon application of a member who is
not receiving a benefit under either Section 16-133, Section
16-149.1 or Section 16-149.2. The benefit shall be granted only
if the member is found by medical examination to be
incapacitated to perform the duties of his or her position as a
teacher and only if the commencement of the incapacity occurred
while the member was employed as a teacher or within 90 days of
such employment.
    A member shall be considered disabled only when the System
has received (1) a written certificate by at least 2 licensed
and practicing physicians designated by the System, certifying
that the member is disabled and unable to properly perform the
duties of his or her position at the time of disability, except
in the case of disability due to pregnancy where a written
certificate from only one licensed and practicing physician is
required; (2) a written statement from the employer certifying
that the member is not eligible to receive a salary; and (3) a
certification from the member that he or she is not and has not
been engaged in gainful employment during the period of
disability.
    The benefit shall begin to accrue on the 31st day of
absence from service on account of disability, except that when
an application is made more than 90 days subsequent to the
later of the commencement of disability or the date eligibility
for salary ceases, it shall begin to accrue from the date of
application, and shall be payable during the time the member
does not receive a retirement annuity. The benefit is not
payable to a member who is receiving or has a right to receive
any salary as a teacher, or is employed in any capacity as a
teacher by the employers included under this System or in an
equivalent capacity in any other public or private school,
college or university, except as provided in Section 16-149.6.
    Service credits under the State Employees' Retirement
System of Illinois, the State Universities Retirement System
and the Illinois Municipal Retirement Fund shall be considered
in determining the member's eligibility for a disability
benefit and the total period during which the disability
benefit is payable.
    (b) The disability benefit shall be 40% of the greater of
the member's most recent annual contract salary rate at the
time the disability benefit becomes payable or the member's
annual contract rate on the date the disability commenced.
Prior to July 1, 1990, if the most recent period of service of
any member was rendered on a less than full-time but not less
than half-time basis, the amount of the disability benefit
payable to such member shall be computed on the basis of the
salary received by such member for the member's last year of
service on a full-time basis if such salary was greater than
the member's most recent salary. For part-time and substitute
members after June 30, 1990, the disability benefit shall be
40% of the greater of the member's most recent annualized
salary rate at the time the disability benefit becomes payable
or the annualized salary rate or contract salary rate at the
time the disability commenced.
    In addition to the above benefit, the member shall receive
creditable service and credit for contributions that the member
would have made in active employment during any period of
disability for which benefits are paid by the System on the
basis of the annual salary rate used in computing the benefit,
except as provided in Section 16-149.6.
    (c) Effective January 1, 1988, the disability benefit shall
continue until the time one of the following events first
occurs: (1) disability ceases; (2) the member requests
termination of the benefit; (3) the aggregate period for which
disability payments made during the member's entire period of
service equals 1/4 of the total period of creditable service,
not including the time he or she has received the disability
payments; or (4) the member is engaged or found to be able to
engage in gainful employment, other than limited employment
under Section 16-149.6. If the disability benefit is
discontinued under item (4) but the member is subsequently
found to be unable to be gainfully employed due to the
disability which was the cause for his or her most recent
incapacity to perform the duties of a teacher, the disability
benefit will be resumed, upon notification of the System, as
soon as the member is not eligible to receive salary.
    A disabled member who receives disability benefits for the
maximum period specified above or who requests that the
disability benefits be terminated may be retired on a
disability retirement annuity.
    (d) The board shall prescribe rules governing the filing,
investigation, control, and supervision of disability claims.
The rules shall include specific standards to be used when
requesting additional medical examinations, hospital records
or other data necessary for determining the employment capacity
and condition of the member. Costs incurred by a claimant in
connection with completing a claim for disability benefits
shall be paid by the claimant.
(Source: P.A. 86-272; 86-273; 86-1028; 87-794; 87-1265.)
 
    (40 ILCS 5/16-149.1)  (from Ch. 108 1/2, par. 16-149.1)
    Sec. 16-149.1. Occupational disability benefit.
    (a) A member who becomes totally and immediately
incapacitated for duty as the proximate result of bodily
injuries sustained or a hazard undergone while in the
performance and within the scope of his or her duties, if such
injuries or hazard were not the consequence of the member's
willful negligence, shall receive an occupational disability
benefit upon making proper application. If application is made
more than 90 days subsequent to the later of the commencement
of disability or the date eligibility for salary ceases,
benefits shall begin to accrue from the date of application,
but service credit and credit for contributions will be earned
from the date of disability. The benefit is not payable to, and
credit for service and contributions may not be earned under
this Section by, a member who is receiving a benefit under
Section 16-133, 16-149, or 16-149.2, or who is receiving salary
as a teacher, or is employed in any capacity as a teacher by
the employers included under this System or in an equivalent
capacity in any other public or private school, college or
university, except as provided in Section 16-149.6.
    Proper proof of disability shall consist of: (1) a written
certificate by at least 2 licensed and practicing physicians
designated by the System, certifying that member is disabled
and unable to perform assigned duties; (2) a written statement
from the employer certifying that the member is disabled and
not receiving a salary, and related information as to the cause
and commencement of disability; and (3) a written statement
from the member certifying that the member is not and has not
been engaged in gainful employment.
    Occupational disability benefits under this Section shall
be payable only if (1) on the basis of a claim filed by the
applicant with the Illinois Workers' Compensation Commission,
it is determined by the Commission that the disability was
incurred while in the performance and within the scope of
assigned duties, under the terms of the Illinois Workers'
Compensation or Occupational Diseases Act, whichever applies,
and the claim is adjudicated as compensable by the Commission
under either of the aforesaid Acts; or (2) on the basis of a
claim filed by the applicant with an insurance carrier with
which the employer of the applicant has a workers' compensation
insurance policy, it is determined under the terms of the
aforesaid policy that the disability was incurred while in the
performance and within the scope of the member's assigned
duties and the claim is approved as compensable.
    (b) The occupational disability benefit shall be the
greater of 60% of the member's contract salary rate at the time
the disability benefit becomes payable or the member's annual
contract rate on the date the disability commenced, and shall
be payable monthly in equal installments. For part-time and
substitute teachers after June 30, 1990, the benefit shall be
the greater of the member's most recent annualized salary rate
at the time the disability benefit becomes payable or the
annualized salary rate or annual contract rate at the time the
disability commenced.
    Any amounts provided for a member or a member's dependents
under the Illinois Workers' Compensation Act, the Illinois
Occupational Diseases Act or a workers' compensation insurance
policy provided by the employer shall be applied as an offset
to any occupational benefit provided under this Section in such
manner as may be prescribed by the board.
    In addition to the above benefit, the member shall receive
creditable service and credit for contributions that the member
would have made in active employment during the period of
disability, except as provided in Section 16-149.6. Creditable
service and credit for contributions shall be calculated on the
basis of the annual salary rate used in computing the benefit;
however, such credit shall not be used in the determination of
the period for which disability benefits are payable. A member
who remains disabled after the termination of benefits due to
age or the expiration of the maximum period for which benefits
are payable shall be entitled to the retirement annuity
provided under Section 16-133, notwithstanding that the member
may not have the required minimum period of creditable service
prescribed for such annuity.
    (c) Effective January 1, 1988, the occupational disability
benefit shall continue until the time one of the following
first occurs: (1) disability ceases; (2) the member requests
termination of the benefit; or (3) the member is engaged or
found to be able to engage in gainful employment, other than
limited employment under Section 16-149.6. If the disability
benefit is discontinued under item (3) but the member is
subsequently found to be unable to be gainfully employed due to
the disability which was the cause for his or her most recent
incapacity to perform the duties of a teacher, the disability
benefit will be resumed, upon notification of the System, as
soon as the member is not eligible to receive salary.
    (d) The board shall prescribe rules governing the filing,
investigation, control, and supervision of disability claims.
Costs incurred by a claimant in connection with completing a
claim for disability benefits shall be paid by the claimant.
(Source: P.A. 93-721, eff. 1-1-05.)
 
    (40 ILCS 5/16-149.2)  (from Ch. 108 1/2, par. 16-149.2)
    Sec. 16-149.2. Disability retirement annuity.
    (a) A member whose disability benefit has been terminated
under the provisions of Section 16-149 may be retired on a
disability retirement annuity payable effective the day
following such termination provided the member remains
disabled under the standard of disability provided in Section
16-149.
    The disability retirement annuity shall be payable upon
receipt of written certificates from at least 2 licensed
physicians designated by the System verifying the continuation
of the disability condition. A disability retirement annuity
shall not be paid during any period for which the member
receives benefits under Section 16-133, Section 16-149, or
Section 16-149.1 or has a right to receive a salary as a
teacher, or is employed in any capacity as a teacher by the
employers included under this System or in an equivalent
capacity in any other public or private school, college or
university, except as provided in Section 16-149.6.
    (b) The disability retirement annuity shall be equal to the
larger of: (1) 35% of the most recent annual contract salary
rate or for part-time and substitute members after June 30,
1990, the most recent annualized salary rate; or (2) if
disability commences prior to the member's attainment of age
55, the amount computed in accordance with Section 16-133,
provided the amount computed under paragraph (B) of Section
16-133 shall be reduced by 1/2 of 1% for each month that the
member is less than age 55; or (3) if disability commences
after the member's attainment of age 55, and the member is not
receiving a retirement annuity under Section 16-133, the amount
computed in accordance with Section 16-133.
    Prior to July 1, 1990, if the most recent period of service
of any member eligible to receive a disability retirement
annuity was rendered on a less than full-time but not less than
half-time basis, the amount of the disability retirement
annuity payable shall be computed on the basis of the salary
received by such member for the member's last year of service
on a full-time basis if such salary was greater than the
member's most recent salary.
    (c) If an annuitant receiving a disability retirement
annuity under this Section is engaged in or able to engage in
gainful employment (including limited employment under Section
16-149.6) paying more than the difference between the
disability retirement annuity and the salary rate upon which
the disability benefit is based, with no salary to be
considered less than the minimum prescribed in Section 24-8 of
the School Code, the disability retirement annuity shall be
reduced to an amount which together with the amount earned by
the annuitant, equals the salary rate upon which the disability
benefit is based. However, for the purposes of this subsection
(c) only, the salary rate upon which the benefit is based shall
be deemed to increase by 15% on the tenth anniversary of the
commencement of the annuity.
    Once each year during the first 5 years following
retirement on a disability retirement annuity, and once in
every 3-year period thereafter, the System may require an
annuitant to undergo a medical examination, by a physician or
physicians designated by the System. If the annuitant refuses
to submit to such medical examination, the annuity shall be
discontinued until such time as the annuitant consents to the
examination, and if refusal continues for one year, all the
rights to the annuity shall be revoked.
    (d) If an annuitant in receipt of a disability retirement
annuity returns to active service as a teacher (other than
limited employment under Section 16-149.6) or is no longer
disabled, such annuity shall cease and the annuitant shall
again become a member of the Retirement System and, if in
active service as a teacher, shall make regular contributions.
All service for which the annuitant had credit on the date of
disability shall be properly reestablished.
    An annuitant in receipt of a disability retirement annuity
who returns to active service as a teacher and who again
becomes disabled shall not be entitled to a recomputation of
the disability retirement annuity based on amendments enacted
while the annuitant was in receipt of the annuity unless at
least one year of creditable service is rendered after the
latest re-entry into service.
    (e) An annuitant in receipt of a disability retirement
annuity may, upon reaching retirement age as specified in
Section 16-132, apply for a retirement annuity which is to be
calculated as specified in Section 16-133. The disability
retirement annuity shall be discontinued upon commencement of
the retirement annuity.
    (f) The board shall prescribe rules governing the filing,
investigation, control, and supervision of disability
retirement claims. The rules shall include specific standards
to be used when requesting additional medical examinations,
hospital records or other data necessary for determining the
employment capacity and condition of the annuitant. Costs
incurred by a claimant in connection with completing a claim
for disability benefits shall be paid by the claimant.
    The changes to this Section made by this amendatory Act of
1991 shall apply not only to persons who on or after its
effective date are in service as a teacher under the System,
but also to persons whose status as a teacher terminated prior
to that date, whether or not the person is an annuitant on that
date.
(Source: P.A. 93-469, eff. 8-8-03.)
 
    (40 ILCS 5/16-149.6 new)
    Sec. 16-149.6. Limited employment during disability.
    (a) A teacher who (i) has been receiving a disability,
occupational disability, or disability retirement benefit
under Section 16-149, 16-149.1, or 16-149.2 for at least one
year and (ii) remains unable to resume regular full-time
teaching due to disability, but is able to engage in limited or
part-time employment as a teacher, may engage in such limited
or part-time employment as a teacher without loss of the
disability, occupational disability, or disability retirement
benefit, provided that the teacher's earnings for that limited
or part-time employment, when added to the amount of the
benefit, do not exceed 100% of the salary rate upon which the
benefit is based.
    (b) A disabled teacher who engages in limited or part-time
teaching under this Section and earns service and contribution
credits for that teaching shall not receive duplicate service
or contribution credits under Section 16-149 or 16-149.1.
 
    Section 99. Effective date. This Act takes effect upon
becoming law.

Effective Date: 8/10/2005