Illinois Senate Bill SB2366

Illinois 2023-2024 Regular Session

• Introduced: 2/10/23
• Refer: 2/10/23
• Refer: 2/28/23
• Refer: 3/31/23

Caption

PEN CD-CTPF-RE-EMPLOYMENT

Impact

The bill seeks to reinforce the financial sustainability of pension funds while addressing significant teacher shortages in specific subject areas. By imposing a financial contribution from re-employed pensioners, the bill aims to mitigate the fiscal pressure on teacher pension funds. Additionally, it provides clarity on the cancellation of pension benefits, effectively restricting pension payouts if certain conditions related to employment duration and compensation are breached. This change is particularly relevant as it aims to keep pension funding balanced while allowing retired teachers to return to employment.

Summary

SB2366 amends the Illinois Pension Code concerning service retirement pensioners in the education sector. It introduces a provision that a service retirement pensioner who is re-employed as a teacher in areas facing subject shortages will have 9% of their salary contributed to their pension fund as a sustainability contribution. Notably, the bill asserts that during this re-employment, the individual will not earn additional service credit toward their pension, and their pension benefits will not be recalculated based on this employment. This clause aims to address teacher shortages while sustaining the pension fund.

Contention

Opponents of SB2366 may argue that the restrictions imposed on re-employment can limit the opportunities for experienced educators to return to teaching, especially in critical shortage areas. Critics may view the mandatory 9% salary deduction as a punitive measure against retired educators, potentially disincentivizing them from re-entering the workforce. Another point of contention involves the amendment of the State Mandates Act, which eliminates the state's obligation to provide reimbursements for implementing these new regulations, raising concerns about local educational budgets and staffing strategies.