104TH GENERAL ASSEMBLY State of Illinois 2025 and 2026 SB1188 Introduced 1/24/2025, by Sen. Robert F. Martwick SYNOPSIS AS INTRODUCED: 40 ILCS 5/17-149 from Ch. 108 1/2, par. 17-14930 ILCS 805/8.49 new Amends the Chicago Teacher Article of the Illinois Pension Code. In a provision allowing a service retirement pensioner to be re-employed as a teacher for a specified number of days without cancellation of the service retirement pension, provides that if a service retirement pensioner works more than the number of days allowed under that provision in any school year, the service retirement pension benefit shall be withheld on a pro rata basis for each day worked in excess of the number of days allowed. Provides that if a pensioner who only teaches drivers education courses after regular school hours works more than 900 hours in any school year, the service retirement pension benefit shall be withheld on a pro rata basis for each period of 7.5 hours in excess of 900 hours. Provides that the changes made by the amendatory Act are retroactive to July 1, 2020. Provides that all service retirement pensioners whose service retirement pensions were cancelled as a result of re-employment as a teacher during the period of July 1, 2020 through the effective date of the amendatory Act shall have their overpayments recalculated on a pro rata basis consistent with the changes made by the amendatory Act, and the difference between the initial overpayment and the recalculated overpayment shall be refunded to those service retirement pensioners with interest. Amends the State Mandates Act to require implementation without reimbursement. Effective immediately. LRB104 07435 RPS 17476 b STATE MANDATES ACT MAY REQUIRE REIMBURSEMENT MAY APPLY A BILL FOR 104TH GENERAL ASSEMBLY State of Illinois 2025 and 2026 SB1188 Introduced 1/24/2025, by Sen. Robert F. Martwick SYNOPSIS AS INTRODUCED: 40 ILCS 5/17-149 from Ch. 108 1/2, par. 17-14930 ILCS 805/8.49 new 40 ILCS 5/17-149 from Ch. 108 1/2, par. 17-149 30 ILCS 805/8.49 new Amends the Chicago Teacher Article of the Illinois Pension Code. In a provision allowing a service retirement pensioner to be re-employed as a teacher for a specified number of days without cancellation of the service retirement pension, provides that if a service retirement pensioner works more than the number of days allowed under that provision in any school year, the service retirement pension benefit shall be withheld on a pro rata basis for each day worked in excess of the number of days allowed. Provides that if a pensioner who only teaches drivers education courses after regular school hours works more than 900 hours in any school year, the service retirement pension benefit shall be withheld on a pro rata basis for each period of 7.5 hours in excess of 900 hours. Provides that the changes made by the amendatory Act are retroactive to July 1, 2020. Provides that all service retirement pensioners whose service retirement pensions were cancelled as a result of re-employment as a teacher during the period of July 1, 2020 through the effective date of the amendatory Act shall have their overpayments recalculated on a pro rata basis consistent with the changes made by the amendatory Act, and the difference between the initial overpayment and the recalculated overpayment shall be refunded to those service retirement pensioners with interest. Amends the State Mandates Act to require implementation without reimbursement. Effective immediately. LRB104 07435 RPS 17476 b LRB104 07435 RPS 17476 b STATE MANDATES ACT MAY REQUIRE REIMBURSEMENT MAY APPLY STATE MANDATES ACT MAY REQUIRE REIMBURSEMENT MAY APPLY A BILL FOR 104TH GENERAL ASSEMBLY State of Illinois 2025 and 2026 SB1188 Introduced 1/24/2025, by Sen. Robert F. Martwick SYNOPSIS AS INTRODUCED: 40 ILCS 5/17-149 from Ch. 108 1/2, par. 17-14930 ILCS 805/8.49 new 40 ILCS 5/17-149 from Ch. 108 1/2, par. 17-149 30 ILCS 805/8.49 new 40 ILCS 5/17-149 from Ch. 108 1/2, par. 17-149 30 ILCS 805/8.49 new Amends the Chicago Teacher Article of the Illinois Pension Code. In a provision allowing a service retirement pensioner to be re-employed as a teacher for a specified number of days without cancellation of the service retirement pension, provides that if a service retirement pensioner works more than the number of days allowed under that provision in any school year, the service retirement pension benefit shall be withheld on a pro rata basis for each day worked in excess of the number of days allowed. Provides that if a pensioner who only teaches drivers education courses after regular school hours works more than 900 hours in any school year, the service retirement pension benefit shall be withheld on a pro rata basis for each period of 7.5 hours in excess of 900 hours. Provides that the changes made by the amendatory Act are retroactive to July 1, 2020. Provides that all service retirement pensioners whose service retirement pensions were cancelled as a result of re-employment as a teacher during the period of July 1, 2020 through the effective date of the amendatory Act shall have their overpayments recalculated on a pro rata basis consistent with the changes made by the amendatory Act, and the difference between the initial overpayment and the recalculated overpayment shall be refunded to those service retirement pensioners with interest. Amends the State Mandates Act to require implementation without reimbursement. Effective immediately. LRB104 07435 RPS 17476 b LRB104 07435 RPS 17476 b LRB104 07435 RPS 17476 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 SB1188LRB104 07435 RPS 17476 b SB1188 LRB104 07435 RPS 17476 b SB1188 LRB104 07435 RPS 17476 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 (c-5), (c-6), (c-7), or (c-10), the 20 pension shall not be cancelled in the case of a service 21 retirement pensioner who is re-employed on a temporary and 22 non-annual basis or on an hourly basis. 23 (c) If the date of re-employment on a permanent or annual 104TH GENERAL ASSEMBLY State of Illinois 2025 and 2026 SB1188 Introduced 1/24/2025, by Sen. Robert F. Martwick SYNOPSIS AS INTRODUCED: 40 ILCS 5/17-149 from Ch. 108 1/2, par. 17-14930 ILCS 805/8.49 new 40 ILCS 5/17-149 from Ch. 108 1/2, par. 17-149 30 ILCS 805/8.49 new 40 ILCS 5/17-149 from Ch. 108 1/2, par. 17-149 30 ILCS 805/8.49 new Amends the Chicago Teacher Article of the Illinois Pension Code. In a provision allowing a service retirement pensioner to be re-employed as a teacher for a specified number of days without cancellation of the service retirement pension, provides that if a service retirement pensioner works more than the number of days allowed under that provision in any school year, the service retirement pension benefit shall be withheld on a pro rata basis for each day worked in excess of the number of days allowed. Provides that if a pensioner who only teaches drivers education courses after regular school hours works more than 900 hours in any school year, the service retirement pension benefit shall be withheld on a pro rata basis for each period of 7.5 hours in excess of 900 hours. Provides that the changes made by the amendatory Act are retroactive to July 1, 2020. Provides that all service retirement pensioners whose service retirement pensions were cancelled as a result of re-employment as a teacher during the period of July 1, 2020 through the effective date of the amendatory Act shall have their overpayments recalculated on a pro rata basis consistent with the changes made by the amendatory Act, and the difference between the initial overpayment and the recalculated overpayment shall be refunded to those service retirement pensioners with interest. Amends the State Mandates Act to require implementation without reimbursement. Effective immediately. LRB104 07435 RPS 17476 b LRB104 07435 RPS 17476 b LRB104 07435 RPS 17476 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 805/8.49 new LRB104 07435 RPS 17476 b STATE MANDATES ACT MAY REQUIRE REIMBURSEMENT MAY APPLY SB1188 LRB104 07435 RPS 17476 b SB1188- 2 -LRB104 07435 RPS 17476 b SB1188 - 2 - LRB104 07435 RPS 17476 b SB1188 - 2 - LRB104 07435 RPS 17476 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 SB1188 - 2 - LRB104 07435 RPS 17476 b SB1188- 3 -LRB104 07435 RPS 17476 b SB1188 - 3 - LRB104 07435 RPS 17476 b SB1188 - 3 - LRB104 07435 RPS 17476 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 SB1188 - 3 - LRB104 07435 RPS 17476 b SB1188- 4 -LRB104 07435 RPS 17476 b SB1188 - 4 - LRB104 07435 RPS 17476 b SB1188 - 4 - LRB104 07435 RPS 17476 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), then within 30 10 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), the service retirement 26 pension shall thereupon be cancelled. SB1188 - 4 - LRB104 07435 RPS 17476 b SB1188- 5 -LRB104 07435 RPS 17476 b SB1188 - 5 - LRB104 07435 RPS 17476 b SB1188 - 5 - LRB104 07435 RPS 17476 b 1 If the pensioner works more than 120 days or accepts 2 excess gross compensation for such re-employment in any school 3 year that begins on or after July 1, 2019, the service 4 retirement pension shall thereupon be cancelled. 5 The Board of the Fund shall adopt rules for the 6 implementation and administration of this subsection. 7 (c-6) For school years beginning on or after July 1, 2022 8 and before July 1, 2027, the service retirement pension shall 9 not be cancelled in the case of a service retirement pensioner 10 who is re-employed as a teacher or an administrator on a 11 temporary and non-annual basis or on an hourly basis, so long 12 as the person does not work as a teacher or an administrator 13 for compensation on more than 140 days in a school year. Such 14 re-employment does not require contributions, result in 15 service credit, or constitute active membership in the Fund. 16 (c-7) For school years beginning on or after July 1, 2027, 17 the service retirement pension shall not be cancelled in the 18 case of a service retirement pensioner who is re-employed as a 19 teacher or an administrator on a temporary and non-annual 20 basis or on an hourly basis, so long as the person does not 21 work as a teacher or an administrator for compensation on more 22 than 120 days in a school year. Such re-employment does not 23 require contributions, result in service credit, or constitute 24 active membership in the Fund. 25 (c-10) Until June 30, 2027, the service retirement pension 26 of a service retirement pensioner shall not be cancelled if SB1188 - 5 - LRB104 07435 RPS 17476 b SB1188- 6 -LRB104 07435 RPS 17476 b SB1188 - 6 - LRB104 07435 RPS 17476 b SB1188 - 6 - LRB104 07435 RPS 17476 b 1 the service retirement pensioner is employed in a subject 2 shortage area and the Employer that is employing the service 3 retirement pensioner meets the following requirements: 4 (1) If the Employer has honorably dismissed, within 5 the calendar year preceding the beginning of the school 6 term for which it seeks to employ a service retirement 7 pensioner under this subsection, any teachers who are 8 legally qualified to hold positions in the subject 9 shortage area and have not yet begun to receive their 10 service retirement pensions under this Article, the vacant 11 positions must first be tendered to those teachers. 12 (2) For a period of at least 90 days during the 6 13 months preceding the beginning of either the fall or 14 spring term for which it seeks to employ a service 15 retirement pensioner under this subsection, the Employer 16 must, on an ongoing basis, (i) advertise its vacancies in 17 the subject shortage area in employment bulletins 18 published by college and university placement offices 19 located near the school; (ii) search for teachers legally 20 qualified to fill those vacancies through the Illinois 21 Education Job Bank; and (iii) post all vacancies on the 22 Employer's website and list the vacancy in an online job 23 portal or database. 24 An Employer of a teacher who is unable to continue 25 employment with the Employer because of documented illness, 26 injury, or disability that occurred after being hired by the SB1188 - 6 - LRB104 07435 RPS 17476 b SB1188- 7 -LRB104 07435 RPS 17476 b SB1188 - 7 - LRB104 07435 RPS 17476 b SB1188 - 7 - LRB104 07435 RPS 17476 b 1 Employer under this subsection is exempt from the provisions 2 of paragraph (2) for 90 school days. However, the Employer 3 must on an ongoing basis comply with items (i), (ii), and (iii) 4 of paragraph (2). 5 The Employer must submit documentation of its compliance 6 with this subsection to the regional superintendent. Upon 7 receiving satisfactory documentation from the Employer, the 8 regional superintendent shall certify the Employer's 9 compliance with this subsection to the Fund. 10 (c-15) If a service retirement pension is required to be 11 canceled because the service retirement pensioner worked more 12 than the number of days allowed under this Section in any 13 school year, the service retirement pension benefit shall be 14 withheld on a pro rata basis for each day worked in excess of 15 the number of days allowed under this Section. 16 If a service retirement pensioner who only teaches drivers 17 education courses after regular school hours works more than 18 900 hours in any school year, the service retirement pension 19 benefit shall be withheld on a pro rata basis for each period 20 of 7.5 hours in excess of 900 hours. 21 (d) Notwithstanding Sections 1-103.1 and 17-157, the 22 changes to this Section made by Public Act 90-32 apply without 23 regard to whether termination of service occurred before the 24 effective date of that Act and apply retroactively to August 25 23, 1989. 26 Notwithstanding Sections 1-103.1 and 17-157, the changes SB1188 - 7 - LRB104 07435 RPS 17476 b SB1188- 8 -LRB104 07435 RPS 17476 b SB1188 - 8 - LRB104 07435 RPS 17476 b SB1188 - 8 - LRB104 07435 RPS 17476 b 1 to this Section and Section 17-106 made by Public Act 92-599 2 apply without regard to whether termination of service 3 occurred before June 28, 2002 (the effective date of Public 4 Act 92-599). 5 Notwithstanding Sections 1-103.1 and 17-157, the changes 6 to this Section made by Public Act 97-912 apply without regard 7 to whether termination of service occurred before August 8, 8 2012 (the effective date of Public Act 97-912). 9 The changes made by this amendatory Act of the 104th 10 General Assembly are retroactive to July 1, 2020. All service 11 retirement pensioners whose service retirement pensions were 12 cancelled as a result of re-employment as a teacher pursuant 13 to this Section during the period of July 1, 2020 through the 14 effective date of this amendatory Act of the 104th General 15 Assembly shall have their overpayments recalculated on a pro 16 rata basis consistent with the changes made by this amendatory 17 Act of the 104th General Assembly, and the difference between 18 the initial overpayment and the recalculated overpayment shall 19 be refunded to those service retirement pensioners with 20 interest. 21 (Source: P.A. 102-1013, eff. 5-27-22; 102-1090, eff. 6-10-22; 22 103-154, eff. 6-30-23; 103-588, eff. 6-5-24.) 23 Section 90. The State Mandates Act is amended by adding 24 Section 8.49 as follows: SB1188 - 8 - LRB104 07435 RPS 17476 b SB1188- 9 -LRB104 07435 RPS 17476 b SB1188 - 9 - LRB104 07435 RPS 17476 b SB1188 - 9 - LRB104 07435 RPS 17476 b 1 (30 ILCS 805/8.49 new) 2 Sec. 8.49. Exempt mandate. Notwithstanding Sections 6 and 3 8 of this Act, no reimbursement by the State is required for 4 the implementation of any mandate created by this amendatory 5 Act of the 104th General Assembly. SB1188 - 9 - LRB104 07435 RPS 17476 b