97TH GENERAL ASSEMBLY
State of Illinois
2011 and 2012
SB3597

 

Introduced 2/10/2012, by Sen. Iris Y. Martinez

 

SYNOPSIS AS INTRODUCED:
 
40 ILCS 5/17-149  from Ch. 108 1/2, par. 17-149
30 ILCS 805/8.36 new

    Amends the Chicago Teacher Article of the Illinois Pension Code. Provides that a retired teacher may be re-employed as a teacher on a temporary and non-annual basis or on an hourly basis without loss of pension, so long as the person does not accept more than $10,000 in gross compensation for that re-employment in a school year. Requires the pensioner to notify the Fund and the Board of Education of his or her intention to accept re-employment. Requires the Board of Education to certify the pensioner's status and compensation to the Fund. Requires the Board of the Fund to adopt rules for implementation. Amends the State Mandates Act to require implementation without reimbursement. Effective immediately.


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FISCAL NOTE ACT MAY APPLY
PENSION IMPACT NOTE ACT MAY APPLY
STATE MANDATES ACT MAY REQUIRE REIMBURSEMENT

 

 

A BILL FOR

 

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1    AN ACT concerning public employee benefits.
 
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 17-149 as follows:
 
6    (40 ILCS 5/17-149)  (from Ch. 108 1/2, par. 17-149)
7    Sec. 17-149. Cancellation of pensions.
8    (a) If any person receiving a disability retirement pension
9from the Fund is re-employed as a teacher by an Employer, the
10pension shall be cancelled on the date the re-employment
11begins, or on the first day of a payroll period for which
12service credit was validated, whichever is earlier.
13    (b) If any person receiving a service retirement pension
14from the Fund is re-employed as a teacher on a permanent or
15annual basis by an Employer, the pension shall be cancelled on
16the date the re-employment begins, or on the first day of a
17payroll period for which service credit was validated,
18whichever is earlier. However, subject to the limitations and
19requirements of subsection (c-5), the pension shall not be
20cancelled in the case of a service retirement pensioner who is
21re-employed on a temporary and non-annual basis or on an hourly
22basis.
23    (c) If the date of re-employment on a permanent or annual

 

 

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1basis occurs within 5 school months after the date of previous
2retirement, exclusive of any vacation period, the member shall
3be deemed to have been out of service only temporarily and not
4permanently retired. Such person shall be entitled to pension
5payments for the time he could have been employed as a teacher
6and received salary, but shall not be entitled to pension for
7or during the summer vacation prior to his return to service.
8    When the member again retires on pension, the time of
9service and the money contributed by him during re-employment
10shall be added to the time and money previously credited. Such
11person must acquire 3 consecutive years of additional
12contributing service before he may retire again on a pension at
13a rate and under conditions other than those in force or
14attained at the time of his previous retirement.
15    (c-5) The service retirement pension shall not be cancelled
16in the case of a service retirement pensioner who is
17re-employed as a teacher on a temporary and non-annual basis or
18on an hourly basis, so long as the person does not accept more
19than $10,000 in gross compensation for that re-employment in
20any school year that begins on or after the effective date of
21this amendatory Act of the 97th General Assembly. Such
22re-employment does not require contributions, result in
23service credit, or constitute active membership in the Fund.
24    To be eligible for such re-employment without cancellation
25of pension, the pensioner must notify the Fund and the Board of
26Education of his or her intention to accept re-employment under

 

 

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1this subsection (c-5) before beginning that reemployment (or if
2the re-employment began before the effective date of this
3amendatory Act, then within 30 days after that effective date).
4    The Board of Education must certify to the Fund the
5temporary and non-annual or hourly status and the compensation
6of each pensioner re-employed under this subsection at least
7quarterly, and when the pensioner is approaching the earnings
8limitation under this subsection.
9    If the pensioner accepts more than $10,000 in gross
10compensation for such re-employment in any school year that
11begins on or after the effective date of this amendatory Act of
12the 97th General Assembly, the service retirement pension shall
13thereupon be cancelled.
14    The Board of the Fund shall adopt rules for the
15implementation and administration of this subsection.
16    (d) Notwithstanding Sections 1-103.1 and 17-157, the
17changes to this Section made by Public Act 90-32 apply without
18regard to whether termination of service occurred before the
19effective date of that Act and apply retroactively to August
2023, 1989.
21    Notwithstanding Sections 1-103.1 and 17-157, the changes
22to this Section and Section 17-106 made by Public Act 92-599
23this amendatory Act of the 92nd General Assembly apply without
24regard to whether termination of service occurred before the
25effective date of that this amendatory Act.
26    Notwithstanding Sections 1-103.1 and 17-157, the changes

 

 

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1to this Section and Section 17-106 made by this amendatory Act
2of the 97th General Assembly apply without regard to whether
3termination of service occurred before the effective date of
4this amendatory Act.
5(Source: P.A. 92-416, eff. 8-17-01; 92-599, eff. 6-28-02.)
 
6    Section 90. The State Mandates Act is amended by adding
7Section 8.36 as follows:
 
8    (30 ILCS 805/8.36 new)
9    Sec. 8.36. Exempt mandate. Notwithstanding Sections 6 and 8
10of this Act, no reimbursement by the State is required for the
11implementation of any mandate created by this amendatory Act of
12the 97th General Assembly.
 
13    Section 99. Effective date. This Act takes effect upon
14becoming law.