Illinois 2025-2026 Regular Session

Illinois Senate Bill SB1188 Latest Draft

Bill / Introduced Version Filed 01/24/2025

                            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



 

 



 

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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

 

 

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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

 

 

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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.

 

 

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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

 

 

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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

 

 

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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

 

 

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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:

 

 

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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.

 

 

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