97TH GENERAL ASSEMBLY
State of Illinois
2011 and 2012
SB3168

 

Introduced 2/1/2012, by Sen. Terry Link

 

SYNOPSIS AS INTRODUCED:
 
40 ILCS 5/14-111  from Ch. 108 1/2, par. 14-111
105 ILCS 5/24-1  from Ch. 122, par. 24-1

    Amends the State Employees Article of the Illinois Pension Code. Provides that an annuitant who accepts temporary employment from a department for total compensation of less than $30,000 during a calendar year is not considered to make a re-entry after retirement. Amends the School Code. Prohibits a school board from hiring multiple people who are retired and are receiving a retirement annuity under the Teachers' Retirement System of the State of Illinois in order to fill, as a group, a teaching position that would ordinarily be occupied by a single, full-time teacher. Provides that this prohibition does not apply if the school board determines that there is a subject or administrative position shortage that would require action, in which case the school board must apply for an exemption under a Section of the Illinois Pension Code relating to returning to teaching in a subject shortage area. Effective immediately.


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FISCAL NOTE ACT MAY APPLY
PENSION IMPACT NOTE ACT MAY APPLY

 

 

A BILL FOR

 

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1    AN ACT concerning public employees.
 
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 changing
5Section 14-111 as follows:
 
6    (40 ILCS 5/14-111)  (from Ch. 108 1/2, par. 14-111)
7    Sec. 14-111. Re-entry after After retirement.
8    (a) An annuitant who re-enters the service of a department
9and receives compensation on a regular payroll shall receive no
10payments of the retirement annuity during the time he is so
11employed, with the following exceptions:
12        (1) An annuitant who is employed by a department while
13    he or she is a continuing participant in the General
14    Assembly Retirement System under Sections 2-117.1 and
15    14-105.4 will not be considered to have made a re-entry
16    after retirement within the meaning of this Section for the
17    duration of such continuing participation. Any person who
18    is a continuing participant under Sections 2-117.1 and
19    14-105.4 on the effective date of this amendatory Act of
20    1991 and whose retirement annuity has been suspended under
21    this Section shall be entitled to receive from the System a
22    sum equal to the annuity payments that have been withheld
23    under this Section, and shall receive the benefit of this

 

 

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1    amendment without regard to Section 1-103.1.
2        (2) An annuitant who accepts temporary employment from
3    such a department (i) for a period not exceeding 75 working
4    days in any calendar year or (ii) for total compensation of
5    less than $30,000 during a calendar year is not considered
6    to make a re-entry after retirement within the meaning of
7    this Section. Any part of a day on temporary employment is
8    considered a full day of employment.
9    (b) If such person re-enters the service of a department,
10not as a temporary employee, contributions to the system shall
11begin as of the date of re-employment and additional creditable
12service shall begin to accrue. He shall assume the status of a
13member entitled to all rights and privileges in the system,
14including death and disability benefits, excluding a refund of
15contributions.
16    Upon subsequent retirement, his retirement annuity shall
17consist of:
18        (1) the amounts of the annuities terminated by re-entry
19    into service; and
20        (2) the amount of the additional retirement annuity
21    earned by the member during the period of additional
22    membership service which shall not be subject to
23    reversionary annuity if any.
24    The total retirement annuity shall not, however, exceed the
25maximum applicable to the member at the time of original
26retirement. In the computation of any such retirement annuity,

 

 

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1the time that the member was on retirement shall not interrupt
2the continuity of service for the computation of final average
3compensation and the additional membership service shall be
4considered, together with service rendered before the previous
5retirement, in establishing final average compensation.
6    A person who re-enters the service of a department within 3
7years after retiring may qualify to have the retirement annuity
8computed as though the member had not previously retired by
9paying to the System, within 5 years after re-entry and prior
10to subsequent retirement, in a lump sum or in installment
11payments in accordance with such rules as may be adopted by the
12Board, an amount equal to all retirement payments received,
13including any payments received in accordance with subsection
14(c) or (d) of Section 14-130, plus regular interest from the
15date retirement payments were suspended to the date of
16repayment.
17(Source: P.A. 86-1488; 87-794.)
 
18    Section 10. The School Code is amended by changing Section
1924-1 as follows:
 
20    (105 ILCS 5/24-1)  (from Ch. 122, par. 24-1)
21    Sec. 24-1. Appointment - Salaries - Payment - School month -
22 School term.) School boards shall appoint all teachers,
23determine qualifications of employment and fix the amount of
24their salaries subject to limitation set forth in this Act.

 

 

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1They shall pay the wages of teachers monthly, subject, however,
2to the provisions of Section 24-21. The school month shall be
3the same as the calendar month but by resolution the school
4board may adopt for its use a month of 20 days, including
5holidays. The school term shall consist of at least the minimum
6number of pupil attendance days required by Section 10-19, any
7additional legal school holidays, days of teachers'
8institutes, or equivalent professional educational
9experiences, and one or two days at the beginning of the school
10term when used as a teachers' workshop.
11    A school board is prohibited from hiring multiple people
12who are retired and are receiving a retirement annuity under
13the Teachers' Retirement System of the State of Illinois in
14order to fill, as a group, a teaching position that would
15ordinarily be occupied by a single, full-time teacher. However,
16this prohibition does not apply if the school board determines
17that there is a subject or administrative position shortage
18that would require action, in which case the school board must
19apply for an exemption under Section 16-150.1 of the Illinois
20Pension Code.
21(Source: P.A. 80-249.)
 
22    Section 99. Effective date. This Act takes effect upon
23becoming law.