Illinois General Assembly - Illinois Compiled Statutes

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40 ILCS 5/17-149

(40 ILCS 5/17-149) (from Ch. 108 1/2, par. 17-149)

Sec. 17-149. Cancellation of pensions.

(a) If any person receiving a disability retirement
pension from the Fund is re-employed as a teacher by an Employer, the pension
shall be cancelled on the date the re-employment begins, or on the first day of
a payroll period for which service credit was validated, whichever is earlier.

(b) If any person receiving a service retirement pension from the Fund
is re-employed as a teacher on a permanent or annual basis by an Employer,
the pension shall be cancelled on the date the re-employment begins, or on
the first day of a payroll period for which service credit was validated,
whichever is earlier.  However, subject to the limitations and requirements of subsection (c-5), the pension shall not be cancelled
in the case of a service retirement pensioner who is
re-employed on a temporary and non-annual basis or on an hourly basis.

(c) If the date of re-employment on a permanent or annual basis
occurs within 5 school months after the date of previous retirement, exclusive
of any vacation period, the member shall be deemed to have been out of service
only temporarily and not permanently retired.  Such person shall be entitled
to pension payments for the time he could have been employed as a teacher and
received salary, but shall not be entitled to pension for or during the summer
vacation prior to his return to service.

When the member again retires on pension, the time of service and the
money contributed by him during re-employment shall be added to the time
and money previously credited.  Such person must acquire 3 consecutive years
of additional contributing service before he may retire again on a pension
at a rate and under conditions other than those in force or attained at the
time of his previous retirement.

(c-5) 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 100 days  in a school year and (2) does not accept  gross compensation for the re-employment in a school year in  excess of (i) $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 100.  These limitations apply only to school years that begin on or after the effective date of this amendatory Act of the 97th General Assembly. Such re-employment does not  require contributions, result in service credit, or constitute active membership in the Fund.

To be eligible for such re-employment without cancellation of pension, the pensioner must notify the Fund and the Board of Education of his or her intention to accept re-employment under this subsection (c-5) before beginning that re-employment (or if the re-employment began before the effective date of this amendatory Act, then within 30 days after that effective date).

The Board of Education must certify to the Fund the temporary  and non-annual or hourly status and the compensation of each pensioner re-employed under this subsection at least quarterly, and when the pensioner is approaching the earnings limitation under this subsection.

If the  pensioner works more than 100 days or accepts excess gross compensation for such re-employment in any school year that begins on or after the effective date of this amendatory Act of the 97th General Assembly, the service retirement pension shall thereupon be cancelled.

The Board of the Fund shall adopt rules for the implementation and administration of this subsection.

(d) Notwithstanding Sections 1-103.1 and 17-157, the changes to this
Section made by Public Act 90-32
apply without regard to whether termination of service occurred before the
effective date of that Act and apply
retroactively to August 23, 1989.

Notwithstanding Sections 1-103.1 and 17-157, the changes to this Section
and Section 17-106 made by Public Act 92-599 
apply without regard to whether termination of service occurred before the
effective date of that Act.

Notwithstanding Sections 1-103.1 and 17-157, the changes to this Section
made by this amendatory Act of the 97th General Assembly
apply without regard to whether termination of service occurred before the
effective date of this amendatory Act.

(Source: P.A. 97-912, eff. 8-8-12.)