093_SB2129

                                     LRB093 14100 LRD 19548 b

 1        AN ACT in relation to public employee benefits.

 2        Be  it  enacted  by  the People of the State of Illinois,
 3    represented in the General Assembly:

 4        Section 5.  The  Illinois  Pension  Code  is  amended  by
 5    changing  Sections  16-149, 16-149.1, and 16-149.2 and adding
 6    Section 16-149.6 as follows:

 7        (40 ILCS 5/16-149) (from Ch. 108 1/2, par. 16-149)
 8        Sec. 16-149.  Disability benefit.
 9        (a)  A disability benefit is payable to a member who  was
10    in  active service on or after June 30, 1977 and has at least
11    3 years of  creditable  service.   Part-time  and  substitute
12    teachers  who  are in active service on or after July 1, 1990
13    must have worked as a teacher  for  at  least  340  hours  in
14    either  the  school year in which the disability occurs or in
15    the preceding school year.
16        The benefit is payable upon application of a  member  who
17    is  not  receiving  a  benefit  under  either Section 16-133,
18    Section 16-149.1 or Section 16-149.2.  The benefit  shall  be
19    granted only if the member is found by medical examination to
20    be incapacitated to perform the duties of his or her position
21    as  a  teacher and only if the commencement of the incapacity
22    occurred while the member was employed as a teacher or within
23    90 days of such employment.
24        A member shall  be  considered  disabled  only  when  the
25    System  has  received (1) a written certificate by at least 2
26    licensed and practicing physicians designated by the  System,
27    certifying that the member is disabled and unable to properly
28    perform  the  duties  of  his  or her position at the time of
29    disability, except in the case of disability due to pregnancy
30    where a  written  certificate  from  only  one  licensed  and
31    practicing  physician  is  required;  (2) a written statement
 
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 1    from the employer certifying that the member is not  eligible
 2    to  receive a salary; and (3) a certification from the member
 3    that he or she is not and has not  been  engaged  in  gainful
 4    employment during the period of disability.
 5        The  benefit  shall  begin  to  accrue on the 31st day of
 6    absence from service on account of  disability,  except  that
 7    when  an  application is made more than 90 days subsequent to
 8    the later of the  commencement  of  disability  or  the  date
 9    eligibility  for salary ceases, it shall begin to accrue from
10    the date of application, and shall be payable during the time
11    the member  does  not  receive  a  retirement  annuity.   The
12    benefit  is not payable to a member who is receiving or has a
13    right to receive any salary as a teacher, or is  employed  in
14    any  capacity  as  a  teacher by the employers included under
15    this System or in an equivalent capacity in any other  public
16    or  private school, college or university, except as provided
17    in Section 16-149.6.
18        Service credits under  the  State  Employees'  Retirement
19    System  of Illinois, the State Universities Retirement System
20    and  the  Illinois  Municipal  Retirement   Fund   shall   be
21    considered  in  determining  the  member's  eligibility for a
22    disability benefit and the  total  period  during  which  the
23    disability benefit is payable.
24        (b)  The  disability  benefit shall be 40% of the greater
25    of the member's most recent annual contract  salary  rate  at
26    the  time  the  disability  benefit  becomes  payable  or the
27    member's annual contract rate  on  the  date  the  disability
28    commenced.   Prior to July 1, 1990, if the most recent period
29    of service  of  any  member  was  rendered  on  a  less  than
30    full-time  but  not  less than half-time basis, the amount of
31    the disability  benefit  payable  to  such  member  shall  be
32    computed  on  the basis of the salary received by such member
33    for the member's last year of service on a full-time basis if
34    such salary was greater than the member's most recent salary.
 
                            -3-      LRB093 14100 LRD 19548 b
 1    For part-time and substitute members after June 30, 1990, the
 2    disability benefit  shall  be  40%  of  the  greater  of  the
 3    member's  most  recent annualized salary rate at the time the
 4    disability benefit becomes payable or the  annualized  salary
 5    rate  or  contract  salary  rate  at  the time the disability
 6    commenced.
 7        In addition  to  the  above  benefit,  the  member  shall
 8    receive  creditable service and credit for contributions that
 9    the member would have made in active  employment  during  any
10    period  of  disability  for  which  benefits  are paid by the
11    System on the  basis  of  the  annual  salary  rate  used  in
12    computing   the   benefit,  except  as  provided  in  Section
13    16-149.6.
14        (c)  Effective January 1, 1988,  the  disability  benefit
15    shall  continue  until  the  time one of the following events
16    first occurs:  (1) disability ceases; (2) the member requests
17    termination of the benefit;  (3)  the  aggregate  period  for
18    which  disability  payments  made  during the member's entire
19    period  of  service  equals  1/4  of  the  total  period   of
20    creditable  service,  not  including  the  time he or she has
21    received the  disability  payments;  or  (4)  the  member  is
22    engaged  or found to be able to engage in gainful employment,
23    other than limited employment under Section 16-149.6.  If the
24    disability benefit is discontinued under  item  (4)  but  the
25    member  is  subsequently  found  to be unable to be gainfully
26    employed due to the disability which was the cause for his or
27    her most  recent  incapacity  to  perform  the  duties  of  a
28    teacher,   the  disability  benefit  will  be  resumed,  upon
29    notification of the System, as soon  as  the  member  is  not
30    eligible to receive salary.
31        A  disabled  member  who receives disability benefits for
32    the maximum period specified above or who requests  that  the
33    disability  benefits  be  terminated  may  be  retired  on  a
34    disability retirement annuity.
 
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 1        (d)  The   board  shall  prescribe  rules  governing  the
 2    filing, investigation, control, and supervision of disability
 3    claims.  The rules shall include  specific  standards  to  be
 4    used   when   requesting   additional  medical  examinations,
 5    hospital records or other data necessary for determining  the
 6    employment  capacity  and  condition  of  the  member.  Costs
 7    incurred by a claimant in connection with completing a  claim
 8    for disability benefits shall be paid by the claimant.
 9    (Source: P.A. 86-272; 86-273; 86-1028; 87-794; 87-1265.)

10        (40 ILCS 5/16-149.1) (from Ch. 108 1/2, par. 16-149.1)
11        Sec. 16-149.1.  Occupational disability benefit.
12        (a)  A   member   who  becomes  totally  and  immediately
13    incapacitated for duty as  the  proximate  result  of  bodily
14    injuries  sustained  or  a  hazard  undergone  while  in  the
15    performance  and  within  the  scope of his or her duties, if
16    such injuries or hazard  were  not  the  consequence  of  the
17    member's  willful  negligence,  shall receive an occupational
18    disability  benefit  upon  making  proper  application.    If
19    application is made more than 90 days subsequent to the later
20    of the commencement of disability or the date eligibility for
21    salary  ceases,  benefits shall begin to accrue from the date
22    of  application,  but   service   credit   and   credit   for
23    contributions  will  be  earned  from the date of disability.
24    The benefit is not payable to, and  credit  for  service  and
25    contributions  may  not  be  earned  under this Section by, a
26    member who is  receiving  a  benefit  under  Section  16-133,
27    16-149, or 16-149.2, or who is receiving salary as a teacher,
28    or  is employed in any capacity as a teacher by the employers
29    included under this System or in an  equivalent  capacity  in
30    any  other  public  or private school, college or university,
31    except as provided in Section 16-149.6.
32        Proper proof  of  disability  shall  consist  of:  (1)  a
33    written  certificate  by  at  least 2 licensed and practicing
 
                            -5-      LRB093 14100 LRD 19548 b
 1    physicians designated by the System, certifying  that  member
 2    is  disabled  and  unable  to  perform assigned duties; (2) a
 3    written statement  from  the  employer  certifying  that  the
 4    member  is  disabled  and not receiving a salary, and related
 5    information as to the cause and commencement  of  disability;
 6    and  (3)  a written statement from the member certifying that
 7    the member is  not  and  has  not  been  engaged  in  gainful
 8    employment.
 9        Occupational disability benefits under this Section shall
10    be  payable  only if (1) on the basis of a claim filed by the
11    applicant with the Industrial Commission of Illinois,  it  is
12    determined by the Commission that the disability was incurred
13    while  in  the  performance  and within the scope of assigned
14    duties, under the terms of the Illinois Workers' Compensation
15    or Occupational Diseases  Act,  whichever  applies,  and  the
16    claim  is  adjudicated as compensable by the Commission under
17    either of the aforesaid Acts; or (2) on the basis of a  claim
18    filed  by  the applicant with an insurance carrier with which
19    the employer of the applicant  has  a  workers'  compensation
20    insurance  policy,  it  is  determined under the terms of the
21    aforesaid policy that the disability was  incurred  while  in
22    the performance and within the scope of the member's assigned
23    duties and the claim is approved as compensable.
24        (b)  The  occupational  disability  benefit  shall be the
25    greater of 60% of the member's contract salary  rate  at  the
26    time  the  disability benefit becomes payable or the member's
27    annual contract rate on the date  the  disability  commenced,
28    and  shall  be  payable  monthly  in equal installments.  For
29    part-time and substitute teachers after June  30,  1990,  the
30    benefit  shall  be  the  greater  of the member's most recent
31    annualized salary rate at the  time  the  disability  benefit
32    becomes  payable  or  the  annualized  salary  rate or annual
33    contract rate at the time the disability commenced.
34        Any  amounts  provided  for  a  member  or   a   member's
 
                            -6-      LRB093 14100 LRD 19548 b
 1    dependents  under the Illinois Workers' Compensation Act, the
 2    Illinois Occupational Diseases Act or a workers' compensation
 3    insurance policy provided by the employer shall be applied as
 4    an offset to any occupational  benefit  provided  under  this
 5    Section in such manner as may be prescribed by the board.
 6        In  addition  to  the  above  benefit,  the  member shall
 7    receive creditable service and credit for contributions  that
 8    the  member  would  have made in active employment during the
 9    period of disability, except as provided in Section 16-149.6.
10    Creditable service and  credit  for  contributions  shall  be
11    calculated  on  the  basis  of the annual salary rate used in
12    computing the benefit; however, such credit shall not be used
13    in the determination  of  the  period  for  which  disability
14    benefits  are  payable.   A member who remains disabled after
15    the termination of benefits due to age or the  expiration  of
16    the  maximum  period  for which benefits are payable shall be
17    entitled to the retirement  annuity  provided  under  Section
18    16-133,  notwithstanding  that  the  member  may not have the
19    required minimum period of creditable service prescribed  for
20    such annuity.
21        (c)  Effective   January   1,   1988,   the  occupational
22    disability benefit shall continue until the time one  of  the
23    following  first  occurs:   (1)  disability  ceases;  (2) the
24    member requests termination of the benefit; or (3) the member
25    is  engaged  or  found  to  be  able  to  engage  in  gainful
26    employment,  other  than  limited  employment  under  Section
27    16-149.6.  If the disability benefit  is  discontinued  under
28    item (3) but the member is subsequently found to be unable to
29    be  gainfully  employed  due  to the disability which was the
30    cause for his or her most recent incapacity  to  perform  the
31    duties  of a teacher, the disability benefit will be resumed,
32    upon notification of the System, as soon as the member is not
33    eligible to receive salary.
34        (d)  The  board  shall  prescribe  rules  governing   the
 
                            -7-      LRB093 14100 LRD 19548 b
 1    filing, investigation, control, and supervision of disability
 2    claims.   Costs  incurred  by  a  claimant in connection with
 3    completing a claim for disability benefits shall be  paid  by
 4    the claimant.
 5    (Source: P.A. 86-272; 86-273; 86-1488; 87-794; 87-1265.)

 6        (40 ILCS 5/16-149.2) (from Ch. 108 1/2, par. 16-149.2)
 7        Sec. 16-149.2.  Disability retirement annuity.
 8        (a)  A   member   whose   disability   benefit  has  been
 9    terminated under the provisions  of  Section  16-149  may  be
10    retired  on a disability retirement annuity payable effective
11    the  day  following  such  termination  provided  the  member
12    remains disabled under the standard of disability provided in
13    Section 16-149.
14        The disability retirement annuity shall be  payable  upon
15    receipt  of  written  certificates  from  at least 2 licensed
16    physicians   designated   by   the   System   verifying   the
17    continuation  of  the  disability  condition.  A   disability
18    retirement  annuity  shall  not be paid during any period for
19    which the member  receives  benefits  under  Section  16-133,
20    Section 16-149, or Section 16-149.1 or has a right to receive
21    a  salary  as  a teacher, or is employed in any capacity as a
22    teacher by the employers included under this System or in  an
23    equivalent  capacity  in  any other public or private school,
24    college  or  university,  except  as  provided   in   Section
25    16-149.6.
26        (b)  The  disability retirement annuity shall be equal to
27    the larger of: (1) 35% of the  most  recent  annual  contract
28    salary  rate  or  for  part-time and substitute members after
29    June 30, 1990, the most recent annualized salary rate; or (2)
30    if disability commences prior to the member's  attainment  of
31    age  55,  the  amount  computed  in  accordance  with Section
32    16-133, provided the amount computed under paragraph  (B)  of
33    Section  16-133  shall be reduced by 1/2 of 1% for each month
 
                            -8-      LRB093 14100 LRD 19548 b
 1    that the member is less than age 55;  or  (3)  if  disability
 2    commences  after  the  member's attainment of age 55, and the
 3    member is not receiving a retirement  annuity  under  Section
 4    16-133,  the  amount  computed  in  accordance  with  Section
 5    16-133.
 6        Prior  to  July  1,  1990,  if  the most recent period of
 7    service of  any  member  eligible  to  receive  a  disability
 8    retirement  annuity was rendered on a less than full-time but
 9    not less than half-time basis, the amount of  the  disability
10    retirement  annuity payable shall be computed on the basis of
11    the salary received by such member for the member's last year
12    of service on a full-time basis if such  salary  was  greater
13    than the member's most recent salary.
14        (c)  If  an  annuitant  receiving a disability retirement
15    annuity under this Section is engaged in or able to engage in
16    gainful  employment  (including  limited   employment   under
17    Section 16-149.6) paying more than the difference between the
18    disability  retirement annuity and the salary rate upon which
19    the disability  benefit  is  based,  with  no  salary  to  be
20    considered  less  than the minimum prescribed in Section 24-8
21    of the School Code, the disability retirement  annuity  shall
22    be reduced to an amount which together with the amount earned
23    by  the  annuitant,  equals  the  salary  rate upon which the
24    disability benefit is based.  However, for  the  purposes  of
25    this  subsection  (c)  only,  the  salary rate upon which the
26    benefit is based shall be deemed to increase by  15%  on  the
27    tenth anniversary of the commencement of the annuity.
28        Once  each  year  during  the  first  5  years  following
29    retirement  on  a  disability retirement annuity, and once in
30    every 3-year period thereafter, the  System  may  require  an
31    annuitant to undergo a medical examination, by a physician or
32    physicians  designated  by  the  System.   If  the  annuitant
33    refuses  to  submit  to such medical examination, the annuity
34    shall be  discontinued  until  such  time  as  the  annuitant
 
                            -9-      LRB093 14100 LRD 19548 b
 1    consents to the examination, and if refusal continues for one
 2    year, all the rights to the annuity shall be revoked.
 3        (d)  If   an   annuitant   in  receipt  of  a  disability
 4    retirement annuity returns to active  service  as  a  teacher
 5    (other  than limited employment under Section 16-149.6) or is
 6    no  longer  disabled,  such  annuity  shall  cease  and   the
 7    annuitant  shall  again  become  a  member  of the Retirement
 8    System and, if in active service as  a  teacher,  shall  make
 9    regular  contributions.   All service for which the annuitant
10    had credit on  the  date  of  disability  shall  be  properly
11    reestablished.
12        An  annuitant  in  receipt  of  a  disability  retirement
13    annuity  who  returns  to active service as a teacher and who
14    again  becomes  disabled  shall  not   be   entitled   to   a
15    recomputation  of  the disability retirement annuity based on
16    amendments enacted while the annuitant was in receipt of  the
17    annuity  unless  at  least  one year of creditable service is
18    rendered after the latest re-entry into service.
19        (e)  An annuitant in receipt of a  disability  retirement
20    annuity  may,  upon  reaching  retirement age as specified in
21    Section 16-132, apply for a retirement annuity which is to be
22    calculated as specified in Section  16-133.   The  disability
23    retirement annuity shall be discontinued upon commencement of
24    the retirement annuity.
25        (f)  The   board  shall  prescribe  rules  governing  the
26    filing, investigation, control, and supervision of disability
27    retirement  claims.   The  rules   shall   include   specific
28    standards  to  be  used  when  requesting  additional medical
29    examinations, hospital records or other  data  necessary  for
30    determining  the  employment  capacity  and  condition of the
31    annuitant.  Costs incurred by a claimant in  connection  with
32    completing  a  claim for disability benefits shall be paid by
33    the claimant.
34        The changes to this Section made by this  amendatory  Act
 
                            -10-     LRB093 14100 LRD 19548 b
 1    of  1991  shall apply not only to persons who on or after its
 2    effective date are in service as a teacher under the  System,
 3    but  also  to  persons  whose  status as a teacher terminated
 4    prior to that date, whether or not the person is an annuitant
 5    on that date.
 6    (Source: P.A. 93-469, eff. 8-8-03.)

 7        (40 ILCS 5/16-149.6 new)
 8        Sec. 16-149.6.  Limited employment during disability.
 9        (a)  A teacher who (i) has been receiving  a  disability,
10    occupational  disability,  or  disability  retirement benefit
11    under Section 16-149, 16-149.1, or 16-149.2 for at least  one
12    year  and  (ii)  remains  unable  to resume regular full-time
13    teaching due to disability, but is able to engage in  limited
14    or  part-time  employment  as  a  teacher, may engage in such
15    limited or part-time employment as a teacher without loss  of
16    the   disability,   occupational  disability,  or  disability
17    retirement benefit, provided that the teacher's earnings  for
18    that  limited  or  part-time  employment,  when  added to the
19    amount of the benefit, do not exceed 100% of the salary  rate
20    upon which the benefit is based.
21        (b)  A   disabled  teacher  who  engages  in  limited  or
22    part-time teaching under this Section and earns  service  and
23    contribution  credits  for  that  teaching  shall not receive
24    duplicate  service  or  contribution  credits  under  Section
25    16-149 or 16-149.1.

26        Section 99. Effective date.  This Act takes  effect  upon
27    becoming law.