SB2920 EngrossedLRB103 36821 RPS 66932 b
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
5changing 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
9pension from the Fund is re-employed as a teacher by an
10Employer, the pension shall be cancelled on the date the
11re-employment begins, or on the first day of a payroll period
12for which service 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), (c-6), (c-7), or (c-10), the
20pension shall not be cancelled in the case of a service
21retirement pensioner who is re-employed on a temporary and
22non-annual basis or on an hourly basis.
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
13at a rate and under conditions other than those in force or
14attained at the time of his previous retirement.
15 (c-5) For school years beginning on or after July 1, 2019
16and before July 1, 2022, the service retirement pension shall
17not be cancelled in the case of a service retirement pensioner
18who is re-employed as a teacher on a temporary and non-annual
19basis or on an hourly basis, so long as the person (1) does not
20work as a teacher for compensation on more than 120 days in a
21school year or (2) does not accept gross compensation for the
22re-employment in a school year in excess of (i) $30,000 or (ii)
23in the case of a person who retires with at least 5 years of
24service as a principal, an amount that is equal to the daily
25rate normally paid to retired principals multiplied by 100.
26These limitations apply only to school years that begin on or

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1after July 1, 2019 and before July 1, 2022. Such re-employment
2does not require contributions, result in service credit, or
3constitute active membership in the Fund.
4 The service retirement pension shall not be cancelled in
5the case of a service retirement pensioner who is re-employed
6as a teacher on a temporary and non-annual basis or on an
7hourly basis, so long as the person (1) does not work as a
8teacher for compensation on more than 100 days in a school year
9or (2) does not accept gross compensation for the
10re-employment in a school year in excess of (i) $30,000 or (ii)
11in the case of a person who retires with at least 5 years of
12service as a principal, an amount that is equal to the daily
13rate normally paid to retired principals multiplied by 100.
14These limitations apply only to school years that begin on or
15after August 8, 2012 (the effective date of Public Act 97-912)
16and before July 1, 2019. Such re-employment does not require
17contributions, result in service credit, or constitute active
18membership in the Fund.
19 Notwithstanding the 120-day limit set forth in item (1) of
20this subsection (c-5), the service retirement pension shall
21not be cancelled in the case of a service retirement pensioner
22who teaches only driver education courses after regular school
23hours and does not teach any other subject area, so long as the
24person does not work as a teacher for compensation for more
25than 900 hours in a school year. The $30,000 limit set forth in
26subitem (i) of item (2) of this subsection (c-5) shall apply to

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1a service retirement pensioner who teaches only driver
2education courses after regular school hours and does not
3teach any other subject area.
4 To be eligible for such re-employment without cancellation
5of pension, the pensioner must notify the Fund and the Board of
6Education of his or her intention to accept re-employment
7under this subsection (c-5) before beginning that
8re-employment (or if the re-employment began before August 8,
92012 (the effective date of Public Act 97-912), then within 30
10days after that effective date).
11 An Employer must certify to the Fund the temporary and
12non-annual or hourly status and the compensation of each
13pensioner re-employed under this subsection at least
14quarterly, and when the pensioner is approaching the earnings
15limitation under this subsection.
16 If the pensioner works more than 100 days or accepts
17excess gross compensation for such re-employment in any school
18year that begins on or after August 8, 2012 (the effective date
19of Public Act 97-912), the service retirement pension shall
20thereupon be cancelled.
21 If the pensioner who only teaches drivers education
22courses after regular school hours works more than 900 hours
23or accepts excess gross compensation for such re-employment in
24any school year that begins on or after August 12, 2016 (the
25effective date of Public Act 99-786), the service retirement
26pension shall thereupon be cancelled.

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1 If the pensioner works more than 120 days or accepts
2excess gross compensation for such re-employment in any school
3year that begins on or after July 1, 2019, the service
4retirement pension shall thereupon be cancelled.
5 The Board of the Fund shall adopt rules for the
6implementation and administration of this subsection.
7 (c-6) For school years beginning on or after July 1, 2022
8and before July 1, 2027 2024, the service retirement pension
9shall not be cancelled in the case of a service retirement
10pensioner who is re-employed as a teacher or an administrator
11on a temporary and non-annual basis or on an hourly basis, so
12long as the person does not work as a teacher or an
13administrator for compensation on more than 140 days in a
14school year. Such re-employment does not require
15contributions, result in service credit, or constitute active
16membership in the Fund.
17 (c-7) For school years beginning on or after July 1, 2027
182024, the service retirement pension shall not be cancelled in
19the case of a service retirement pensioner who is re-employed
20as a teacher or an administrator on a temporary and non-annual
21basis or on an hourly basis, so long as the person does not
22work as a teacher or an administrator for compensation on more
23than 120 days in a school year. Such re-employment does not
24require contributions, result in service credit, or constitute
25active membership in the Fund.
26 (c-10) Until June 30, 2027 2024, the service retirement

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1pension of a service retirement pensioner shall not be
2cancelled if the service retirement pensioner is employed in a
3subject shortage area and the Employer that is employing the
4service retirement pensioner meets the following requirements:
5 (1) If the Employer has honorably dismissed, within
6 the calendar year preceding the beginning of the school
7 term for which it seeks to employ a service retirement
8 pensioner under this subsection, any teachers who are
9 legally qualified to hold positions in the subject
10 shortage area and have not yet begun to receive their
11 service retirement pensions under this Article, the vacant
12 positions must first be tendered to those teachers.
13 (2) For a period of at least 90 days during the 6
14 months preceding the beginning of either the fall or
15 spring term for which it seeks to employ a service
16 retirement pensioner under this subsection, the Employer
17 must, on an ongoing basis, (i) advertise its vacancies in
18 the subject shortage area in employment bulletins
19 published by college and university placement offices
20 located near the school; (ii) search for teachers legally
21 qualified to fill those vacancies through the Illinois
22 Education Job Bank; and (iii) post all vacancies on the
23 Employer's website and list the vacancy in an online job
24 portal or database.
25 An Employer of a teacher who is unable to continue
26employment with the Employer because of documented illness,

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1injury, or disability that occurred after being hired by the
2Employer under this subsection is exempt from the provisions
3of paragraph (2) for 90 school days. However, the Employer
4must on an ongoing basis comply with items (i), (ii), and (iii)
5of paragraph (2).
6 The Employer must submit documentation of its compliance
7with this subsection to the regional superintendent. Upon
8receiving satisfactory documentation from the Employer, the
9regional superintendent shall certify the Employer's
10compliance with this subsection to the Fund.
11 (d) Notwithstanding Sections 1-103.1 and 17-157, the
12changes to this Section made by Public Act 90-32 apply without
13regard to whether termination of service occurred before the
14effective date of that Act and apply retroactively to August
1523, 1989.
16 Notwithstanding Sections 1-103.1 and 17-157, the changes
17to this Section and Section 17-106 made by Public Act 92-599
18apply without regard to whether termination of service
19occurred before June 28, 2002 (the effective date of Public
20Act 92-599).
21 Notwithstanding Sections 1-103.1 and 17-157, the changes
22to this Section made by Public Act 97-912 apply without regard
23to whether termination of service occurred before August 8,
242012 (the effective date of Public Act 97-912).
25(Source: P.A. 102-1013, eff. 5-27-22; 102-1090, eff. 6-10-22;
26103-154, eff. 6-30-23.)

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