103RD GENERAL ASSEMBLY State of Illinois 2023 and 2024 SB2366 Introduced 2/10/2023, by Sen. Robert F. Martwick SYNOPSIS AS INTRODUCED: 40 ILCS 5/17-149 from Ch. 108 1/2, par. 17-149 30 ILCS 805/8.47 new Amends the Chicago Teacher Article of the Illinois Pension Code. Provides that a service retirement pensioner employed under a provision concerning subject shortage areas shall have deducted from the service retirement pensioner's salary an amount equal to 9% of that salary, which shall be contributed to the Fund as a sustainability contribution. Provides that the service retirement pensioner shall not earn service credit during that re-employment, and the service retirement pension benefit shall not be recalculated. Amends the State Mandates Act to require implementation without reimbursement. Effective immediately. LRB103 28813 RPS 55198 b STATE MANDATES ACT MAY REQUIRE REIMBURSEMENT MAY APPLY A BILL FOR 103RD GENERAL ASSEMBLY State of Illinois 2023 and 2024 SB2366 Introduced 2/10/2023, by Sen. Robert F. Martwick SYNOPSIS AS INTRODUCED: 40 ILCS 5/17-149 from Ch. 108 1/2, par. 17-149 30 ILCS 805/8.47 new 40 ILCS 5/17-149 from Ch. 108 1/2, par. 17-149 30 ILCS 805/8.47 new Amends the Chicago Teacher Article of the Illinois Pension Code. Provides that a service retirement pensioner employed under a provision concerning subject shortage areas shall have deducted from the service retirement pensioner's salary an amount equal to 9% of that salary, which shall be contributed to the Fund as a sustainability contribution. Provides that the service retirement pensioner shall not earn service credit during that re-employment, and the service retirement pension benefit shall not be recalculated. Amends the State Mandates Act to require implementation without reimbursement. Effective immediately. LRB103 28813 RPS 55198 b LRB103 28813 RPS 55198 b STATE MANDATES ACT MAY REQUIRE REIMBURSEMENT MAY APPLY STATE MANDATES ACT MAY REQUIRE REIMBURSEMENT MAY APPLY A BILL FOR 103RD GENERAL ASSEMBLY State of Illinois 2023 and 2024 SB2366 Introduced 2/10/2023, by Sen. Robert F. Martwick SYNOPSIS AS INTRODUCED: 40 ILCS 5/17-149 from Ch. 108 1/2, par. 17-149 30 ILCS 805/8.47 new 40 ILCS 5/17-149 from Ch. 108 1/2, par. 17-149 30 ILCS 805/8.47 new 40 ILCS 5/17-149 from Ch. 108 1/2, par. 17-149 30 ILCS 805/8.47 new Amends the Chicago Teacher Article of the Illinois Pension Code. Provides that a service retirement pensioner employed under a provision concerning subject shortage areas shall have deducted from the service retirement pensioner's salary an amount equal to 9% of that salary, which shall be contributed to the Fund as a sustainability contribution. Provides that the service retirement pensioner shall not earn service credit during that re-employment, and the service retirement pension benefit shall not be recalculated. Amends the State Mandates Act to require implementation without reimbursement. Effective immediately. LRB103 28813 RPS 55198 b LRB103 28813 RPS 55198 b LRB103 28813 RPS 55198 b STATE MANDATES ACT MAY REQUIRE REIMBURSEMENT MAY APPLY STATE MANDATES ACT MAY REQUIRE REIMBURSEMENT MAY APPLY STATE MANDATES ACT MAY REQUIRE REIMBURSEMENT MAY APPLY A BILL FOR SB2366LRB103 28813 RPS 55198 b SB2366 LRB103 28813 RPS 55198 b SB2366 LRB103 28813 RPS 55198 b 1 AN ACT concerning 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 Section 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 9 pension from the Fund is re-employed as a teacher by an 10 Employer, the pension shall be cancelled on the date the 11 re-employment begins, or on the first day of a payroll period 12 for which service credit was validated, whichever is earlier. 13 (b) If any person receiving a service retirement pension 14 from the Fund is re-employed as a teacher on a permanent or 15 annual basis by an Employer, the pension shall be cancelled on 16 the date the re-employment begins, or on the first day of a 17 payroll period for which service credit was validated, 18 whichever is earlier. However, subject to the limitations and 19 requirements of subsection subsections (c-5) or (c-10), (c-6), 20 and (c-7), or (c-10), the pension shall not be cancelled in the 21 case of a service retirement pensioner who is re-employed on a 22 temporary and non-annual basis or on an hourly basis. 23 (c) If the date of re-employment on a permanent or annual 103RD GENERAL ASSEMBLY State of Illinois 2023 and 2024 SB2366 Introduced 2/10/2023, by Sen. Robert F. Martwick SYNOPSIS AS INTRODUCED: 40 ILCS 5/17-149 from Ch. 108 1/2, par. 17-149 30 ILCS 805/8.47 new 40 ILCS 5/17-149 from Ch. 108 1/2, par. 17-149 30 ILCS 805/8.47 new 40 ILCS 5/17-149 from Ch. 108 1/2, par. 17-149 30 ILCS 805/8.47 new Amends the Chicago Teacher Article of the Illinois Pension Code. Provides that a service retirement pensioner employed under a provision concerning subject shortage areas shall have deducted from the service retirement pensioner's salary an amount equal to 9% of that salary, which shall be contributed to the Fund as a sustainability contribution. Provides that the service retirement pensioner shall not earn service credit during that re-employment, and the service retirement pension benefit shall not be recalculated. Amends the State Mandates Act to require implementation without reimbursement. Effective immediately. LRB103 28813 RPS 55198 b LRB103 28813 RPS 55198 b LRB103 28813 RPS 55198 b STATE MANDATES ACT MAY REQUIRE REIMBURSEMENT MAY APPLY STATE MANDATES ACT MAY REQUIRE REIMBURSEMENT MAY APPLY STATE MANDATES ACT MAY REQUIRE REIMBURSEMENT MAY APPLY A BILL FOR 40 ILCS 5/17-149 from Ch. 108 1/2, par. 17-149 30 ILCS 805/8.47 new LRB103 28813 RPS 55198 b STATE MANDATES ACT MAY REQUIRE REIMBURSEMENT MAY APPLY SB2366 LRB103 28813 RPS 55198 b SB2366- 2 -LRB103 28813 RPS 55198 b SB2366 - 2 - LRB103 28813 RPS 55198 b SB2366 - 2 - LRB103 28813 RPS 55198 b 1 basis occurs within 5 school months after the date of previous 2 retirement, exclusive of any vacation period, the member shall 3 be deemed to have been out of service only temporarily and not 4 permanently retired. Such person shall be entitled to pension 5 payments for the time he could have been employed as a teacher 6 and received salary, but shall not be entitled to pension for 7 or during the summer vacation prior to his return to service. 8 When the member again retires on pension, the time of 9 service and the money contributed by him during re-employment 10 shall be added to the time and money previously credited. Such 11 person must acquire 3 consecutive years of additional 12 contributing service before he may retire again on a pension 13 at a rate and under conditions other than those in force or 14 attained at the time of his previous retirement. 15 (c-5) For school years beginning on or after July 1, 2019 16 and before July 1, 2022, the service retirement pension shall 17 not be cancelled in the case of a service retirement pensioner 18 who is re-employed as a teacher on a temporary and non-annual 19 basis or on an hourly basis, so long as the person (1) does not 20 work as a teacher for compensation on more than 120 days in a 21 school year or (2) does not accept gross compensation for the 22 re-employment in a school year in excess of (i) $30,000 or (ii) 23 in the case of a person who retires with at least 5 years of 24 service as a principal, an amount that is equal to the daily 25 rate normally paid to retired principals multiplied by 100. 26 These limitations apply only to school years that begin on or SB2366 - 2 - LRB103 28813 RPS 55198 b SB2366- 3 -LRB103 28813 RPS 55198 b SB2366 - 3 - LRB103 28813 RPS 55198 b SB2366 - 3 - LRB103 28813 RPS 55198 b 1 after July 1, 2019 and before July 1, 2022. Such re-employment 2 does not require contributions, result in service credit, or 3 constitute active membership in the Fund. 4 The service retirement pension shall not be cancelled in 5 the case of a service retirement pensioner who is re-employed 6 as a teacher on a temporary and non-annual basis or on an 7 hourly basis, so long as the person (1) does not work as a 8 teacher for compensation on more than 100 days in a school year 9 or (2) does not accept gross compensation for the 10 re-employment in a school year in excess of (i) $30,000 or (ii) 11 in the case of a person who retires with at least 5 years of 12 service as a principal, an amount that is equal to the daily 13 rate normally paid to retired principals multiplied by 100. 14 These limitations apply only to school years that begin on or 15 after August 8, 2012 (the effective date of Public Act 97-912) 16 and before July 1, 2019. Such re-employment does not require 17 contributions, result in service credit, or constitute active 18 membership in the Fund. 19 Notwithstanding the 120-day limit set forth in item (1) of 20 this subsection (c-5), the service retirement pension shall 21 not be cancelled in the case of a service retirement pensioner 22 who teaches only driver education courses after regular school 23 hours and does not teach any other subject area, so long as the 24 person does not work as a teacher for compensation for more 25 than 900 hours in a school year. The $30,000 limit set forth in 26 subitem (i) of item (2) of this subsection (c-5) shall apply to SB2366 - 3 - LRB103 28813 RPS 55198 b SB2366- 4 -LRB103 28813 RPS 55198 b SB2366 - 4 - LRB103 28813 RPS 55198 b SB2366 - 4 - LRB103 28813 RPS 55198 b 1 a service retirement pensioner who teaches only driver 2 education courses after regular school hours and does not 3 teach any other subject area. 4 To be eligible for such re-employment without cancellation 5 of pension, the pensioner must notify the Fund and the Board of 6 Education of his or her intention to accept re-employment 7 under this subsection (c-5) before beginning that 8 re-employment (or if the re-employment began before August 8, 9 2012 (the effective date of Public Act 97-912) this amendatory 10 Act, then within 30 days after that effective date). 11 An Employer must certify to the Fund the temporary and 12 non-annual or hourly status and the compensation of each 13 pensioner re-employed under this subsection at least 14 quarterly, and when the pensioner is approaching the earnings 15 limitation under this subsection. 16 If the pensioner works more than 100 days or accepts 17 excess gross compensation for such re-employment in any school 18 year that begins on or after August 8, 2012 (the effective date 19 of Public Act 97-912), the service retirement pension shall 20 thereupon be cancelled. 21 If the pensioner who only teaches drivers education 22 courses after regular school hours works more than 900 hours 23 or accepts excess gross compensation for such re-employment in 24 any school year that begins on or after August 12, 2016 (the 25 effective date of Public Act 99-786) this amendatory Act of 26 the 99th General Assembly, the service retirement pension SB2366 - 4 - LRB103 28813 RPS 55198 b SB2366- 5 -LRB103 28813 RPS 55198 b SB2366 - 5 - LRB103 28813 RPS 55198 b SB2366 - 5 - LRB103 28813 RPS 55198 b 1 shall thereupon be cancelled. 2 If the pensioner works more than 120 days or accepts 3 excess gross compensation for such re-employment in any school 4 year that begins on or after July 1, 2019, the service 5 retirement pension shall thereupon be cancelled. 6 The Board of the Fund shall adopt rules for the 7 implementation and administration of this subsection. 8 (c-6) For school years beginning on or after July 1, 2022 9 and before July 1, 2024, the service retirement pension shall 10 not be cancelled in the case of a service retirement pensioner 11 who is re-employed as a teacher or an administrator on a 12 temporary and non-annual basis or on an hourly basis bases, so 13 long as the person does not work as a teacher or an 14 administrator for compensation on more than 140 days in a 15 school year. Such re-employment does not require 16 contributions, result in service credit, or constitute active 17 membership in the Fund. 18 (c-7) For school years beginning on or after July 1, 2024, 19 the service retirement pension shall not be cancelled in the 20 case of a service retirement pensioner who is re-employed as a 21 teacher or an administrator on a temporary and non-annual 22 basis or on an hourly basis, so long as the person does not 23 work as a teacher or an administrator for compensation on more 24 than 120 days in a school year. Such re-employment does not 25 require contributions, result in service credit, or constitute 26 active membership in the Fund. SB2366 - 5 - LRB103 28813 RPS 55198 b SB2366- 6 -LRB103 28813 RPS 55198 b SB2366 - 6 - LRB103 28813 RPS 55198 b SB2366 - 6 - LRB103 28813 RPS 55198 b 1 (c-10) Until June 30, 2024, the service retirement pension 2 of a service retirement pensioner shall not be cancelled if 3 the service retirement pensioner is employed in a subject 4 shortage area and the Employer that is employing the service 5 retirement pensioner meets the following requirements: 6 (1) If the Employer has honorably dismissed, within 7 the calendar year preceding the beginning of the school 8 term for which it seeks to employ a service retirement 9 pensioner under this subsection, any teachers who are 10 legally qualified to hold positions in the subject 11 shortage area and have not yet begun to receive their 12 service retirement pensions under this Article, the vacant 13 positions must first be tendered to those teachers. 14 (2) For a period of at least 90 days during the 6 15 months preceding the beginning of either the fall or 16 spring term for which it seeks to employ a service 17 retirement pensioner under this subsection, the Employer 18 must, on an ongoing basis, (i) advertise its vacancies in 19 the subject shortage area in employment bulletins 20 published by college and university placement offices 21 located near the school; (ii) search for teachers legally 22 qualified to fill those vacancies through the Illinois 23 Education Job Bank; and (iii) post all vacancies on the 24 Employer's website and list the vacancy in an online job 25 portal or database. 26 (3) A service retirement pensioner employed under this SB2366 - 6 - LRB103 28813 RPS 55198 b SB2366- 7 -LRB103 28813 RPS 55198 b SB2366 - 7 - LRB103 28813 RPS 55198 b SB2366 - 7 - LRB103 28813 RPS 55198 b 1 subsection shall have deducted from the service retirement 2 pensioner's salary an amount equal to 9% of that salary, 3 which shall be contributed to the Fund as a sustainability 4 contribution. The service retirement pensioner shall not 5 earn service credit during that re-employment, and the 6 service retirement pension benefit shall not be 7 recalculated. 8 An Employer of a teacher who is unable to continue 9 employment with the Employer because of documented illness, 10 injury, or disability that occurred after being hired by the 11 Employer under this subsection is exempt from the provisions 12 of paragraph (2) for 90 school days. However, the Employer 13 must on an ongoing basis comply with items (i), (ii), and (iii) 14 of paragraph (2). 15 The Employer must submit documentation of its compliance 16 with this subsection to the regional superintendent. Upon 17 receiving satisfactory documentation from the Employer, the 18 regional superintendent shall certify the Employer's 19 compliance with this subsection to the Fund. 20 (d) Notwithstanding Sections 1-103.1 and 17-157, the 21 changes to this Section made by Public Act 90-32 apply without 22 regard to whether termination of service occurred before the 23 effective date of that Act and apply retroactively to August 24 23, 1989. 25 Notwithstanding Sections 1-103.1 and 17-157, the changes 26 to this Section and Section 17-106 made by Public Act 92-599 SB2366 - 7 - LRB103 28813 RPS 55198 b SB2366- 8 -LRB103 28813 RPS 55198 b SB2366 - 8 - LRB103 28813 RPS 55198 b SB2366 - 8 - LRB103 28813 RPS 55198 b 1 apply without regard to whether termination of service 2 occurred before June 28, 2002 (the effective date of Public 3 Act 92-599) that Act. 4 Notwithstanding Sections 1-103.1 and 17-157, the changes 5 to this Section made by Public Act 97-912 this amendatory Act 6 of the 97th General Assembly apply without regard to whether 7 termination of service occurred before August 8, 2012 (the 8 effective date of Public Act 97-912) this amendatory Act. 9 (Source: P.A. 101-340, eff. 8-9-19; 102-1013, eff. 5-27-22; 10 102-1090, eff. 6-10-22; revised 7-27-22.) 11 Section 90. The State Mandates Act is amended by adding 12 Section 8.47 as follows: 13 (30 ILCS 805/8.47 new) 14 Sec. 8.47. Exempt mandate. Notwithstanding Sections 6 and 15 8 of this Act, no reimbursement by the State is required for 16 the implementation of any mandate created by this amendatory 17 Act of the 103rd General Assembly. 18 Section 99. Effective date. This Act takes effect upon 19 becoming law. SB2366 - 8 - LRB103 28813 RPS 55198 b