Bill Text: IL SB3346 | 2023-2024 | 103rd General Assembly | Introduced

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Bill Title: 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.

Spectrum: Partisan Bill (Democrat 1-0)

Status: (Introduced) 2024-02-07 - Referred to Assignments [SB3346 Detail]

Download: Illinois-2023-SB3346-Introduced.html

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103RD GENERAL ASSEMBLY State of Illinois 2023 and 2024 SB3346 Introduced 2/7/2024, by Sen. Robert F. Martwick SYNOPSIS AS INTRODUCED:
40 ILCS 5/17-149 from Ch. 108 1/2, par. 17-149
30 ILCS 805/8.48 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.
LRB103 38204 RPS 68338 b
STATE MANDATES ACT MAY REQUIRE REIMBURSEMENT MAY APPLY
A BILL FOR
SB3346 LRB103 38204 RPS 68338 b
AN ACT concerning public employee benefits.
Be it enacted by the People of the State of Illinois,
represented in the General Assembly:
Section 5. The Illinois Pension Code is amended by
changing Section 17-149 as follows:
(40 ILCS 5/17-149) (from Ch. 108 1/2, par. 17-149)
Sec. 17-149. Cancellation of pensions.
(a) If any person receiving a disability retirement
pension from the Fund is re-employed as a teacher by an
Employer, the pension shall be cancelled on the date the
re-employment begins, or on the first day of a payroll period
for which service credit was validated, whichever is earlier.
(b) If any person receiving a service retirement pension
from the Fund is re-employed as a teacher on a permanent or
annual basis by an Employer, the pension shall be cancelled on
the date the re-employment begins, or on the first day of a
payroll period for which service credit was validated,
whichever is earlier. However, subject to the limitations and
requirements of subsection (c-5), (c-6), (c-7), or (c-10), the
pension shall not be cancelled in the case of a service
retirement pensioner who is re-employed on a temporary and
non-annual basis or on an hourly basis.
(c) If the date of re-employment on a permanent or annual

SB3346 - 2 - LRB103 38204 RPS 68338 b
basis occurs within 5 school months after the date of previous
retirement, exclusive of any vacation period, the member shall
be deemed to have been out of service only temporarily and not
permanently retired. Such person shall be entitled to pension
payments for the time he could have been employed as a teacher
and received salary, but shall not be entitled to pension for
or during the summer vacation prior to his return to service.
When the member again retires on pension, the time of
service and the money contributed by him during re-employment
shall be added to the time and money previously credited. Such
person must acquire 3 consecutive years of additional
contributing service before he may retire again on a pension
at a rate and under conditions other than those in force or
attained at the time of his previous retirement.
(c-5) For school years beginning on or after July 1, 2019
and before July 1, 2022, the service retirement pension shall
not be cancelled in the case of a service retirement pensioner
who is re-employed as a teacher on a temporary and non-annual
basis or on an hourly basis, so long as the person (1) does not
work as a teacher for compensation on more than 120 days in a
school year or (2) does not accept gross compensation for the
re-employment in a school year in excess of (i) $30,000 or (ii)
in the case of a person who retires with at least 5 years of
service as a principal, an amount that is equal to the daily
rate normally paid to retired principals multiplied by 100.
These limitations apply only to school years that begin on or

SB3346 - 3 - LRB103 38204 RPS 68338 b
after July 1, 2019 and before July 1, 2022. Such re-employment
does not require contributions, result in service credit, or
constitute active membership in the Fund.
The service retirement pension shall not be cancelled in
the case of a service retirement pensioner who is re-employed
as a teacher on a temporary and non-annual basis or on an
hourly basis, so long as the person (1) does not work as a
teacher for compensation on more than 100 days in a school year
or (2) does not accept gross compensation for the
re-employment in a school year in excess of (i) $30,000 or (ii)
in the case of a person who retires with at least 5 years of
service as a principal, an amount that is equal to the daily
rate normally paid to retired principals multiplied by 100.
These limitations apply only to school years that begin on or
after August 8, 2012 (the effective date of Public Act 97-912)
and before July 1, 2019. Such re-employment does not require
contributions, result in service credit, or constitute active
membership in the Fund.
Notwithstanding the 120-day limit set forth in item (1) of
this subsection (c-5), the service retirement pension shall
not be cancelled in the case of a service retirement pensioner
who teaches only driver education courses after regular school
hours and does not teach any other subject area, so long as the
person does not work as a teacher for compensation for more
than 900 hours in a school year. The $30,000 limit set forth in
subitem (i) of item (2) of this subsection (c-5) shall apply to

SB3346 - 4 - LRB103 38204 RPS 68338 b
a service retirement pensioner who teaches only driver
education courses after regular school hours and does not
teach any other subject area.
To be eligible for such re-employment without cancellation
of pension, the pensioner must notify the Fund and the Board of
Education of his or her intention to accept re-employment
under this subsection (c-5) before beginning that
re-employment (or if the re-employment began before August 8,
2012 (the effective date of Public Act 97-912), then within 30
days after that effective date).
An Employer must certify to the Fund the temporary and
non-annual or hourly status and the compensation of each
pensioner re-employed under this subsection at least
quarterly, and when the pensioner is approaching the earnings
limitation under this subsection.
If the pensioner works more than 100 days or accepts
excess gross compensation for such re-employment in any school
year that begins on or after August 8, 2012 (the effective date
of Public Act 97-912), the service retirement pension shall
thereupon be cancelled.
If the pensioner who only teaches drivers education
courses after regular school hours works more than 900 hours
or accepts excess gross compensation for such re-employment in
any school year that begins on or after August 12, 2016 (the
effective date of Public Act 99-786), the service retirement
pension shall thereupon be cancelled.

SB3346 - 5 - LRB103 38204 RPS 68338 b
If the pensioner works more than 120 days or accepts
excess gross compensation for such re-employment in any school
year that begins on or after July 1, 2019, the service
retirement pension shall thereupon be cancelled.
The Board of the Fund shall adopt rules for the
implementation and administration of this subsection.
(c-6) For school years beginning on or after July 1, 2022
and before July 1, 2024, the service retirement pension shall
not be cancelled in the case of a service retirement pensioner
who is re-employed as a teacher or an administrator on a
temporary and non-annual basis or on an hourly basis, so long
as the person does not work as a teacher or an administrator
for compensation on more than 140 days in a school year. Such
re-employment does not require contributions, result in
service credit, or constitute active membership in the Fund.
(c-7) For school years beginning on or after July 1, 2024,
the service retirement pension shall not be cancelled in the
case of a service retirement pensioner who is re-employed as a
teacher or an administrator on a temporary and non-annual
basis or on an hourly basis, so long as the person does not
work as a teacher or an administrator for compensation on more
than 120 days in a school year. Such re-employment does not
require contributions, result in service credit, or constitute
active membership in the Fund.
(c-10) Until June 30, 2024, the service retirement pension
of a service retirement pensioner shall not be cancelled if

SB3346 - 6 - LRB103 38204 RPS 68338 b
the service retirement pensioner is employed in a subject
shortage area and the Employer that is employing the service
retirement pensioner meets the following requirements:
(1) If the Employer has honorably dismissed, within
the calendar year preceding the beginning of the school
term for which it seeks to employ a service retirement
pensioner under this subsection, any teachers who are
legally qualified to hold positions in the subject
shortage area and have not yet begun to receive their
service retirement pensions under this Article, the vacant
positions must first be tendered to those teachers.
(2) For a period of at least 90 days during the 6
months preceding the beginning of either the fall or
spring term for which it seeks to employ a service
retirement pensioner under this subsection, the Employer
must, on an ongoing basis, (i) advertise its vacancies in
the subject shortage area in employment bulletins
published by college and university placement offices
located near the school; (ii) search for teachers legally
qualified to fill those vacancies through the Illinois
Education Job Bank; and (iii) post all vacancies on the
Employer's website and list the vacancy in an online job
portal or database.
An Employer of a teacher who is unable to continue
employment with the Employer because of documented illness,
injury, or disability that occurred after being hired by the

SB3346 - 7 - LRB103 38204 RPS 68338 b
Employer under this subsection is exempt from the provisions
of paragraph (2) for 90 school days. However, the Employer
must on an ongoing basis comply with items (i), (ii), and (iii)
of paragraph (2).
The Employer must submit documentation of its compliance
with this subsection to the regional superintendent. Upon
receiving satisfactory documentation from the Employer, the
regional superintendent shall certify the Employer's
compliance with this subsection to the Fund.
(c-15) If a service retirement pension is required to be
canceled because the service retirement pensioner worked more
than the number of days allowed under this Section 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 under this Section.
If a service retirement 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.
(d) Notwithstanding Sections 1-103.1 and 17-157, the
changes to this Section made by Public Act 90-32 apply without
regard to whether termination of service occurred before the
effective date of that Act and apply retroactively to August
23, 1989.
Notwithstanding Sections 1-103.1 and 17-157, the changes

SB3346 - 8 - LRB103 38204 RPS 68338 b
to this Section and Section 17-106 made by Public Act 92-599
apply without regard to whether termination of service
occurred before June 28, 2002 (the effective date of Public
Act 92-599).
Notwithstanding Sections 1-103.1 and 17-157, the changes
to this Section made by Public Act 97-912 apply without regard
to whether termination of service occurred before August 8,
2012 (the effective date of Public Act 97-912).
The changes made by this amendatory Act of the 103rd
General Assembly are retroactive to July 1, 2020. All service
retirement pensioners whose service retirement pensions were
cancelled as a result of re-employment as a teacher pursuant
to this Section during the period of July 1, 2020 through the
effective date of this amendatory Act of the 103rd General
Assembly shall have their overpayments recalculated on a pro
rata basis consistent with the changes made by this amendatory
Act of the 103rd General Assembly, and the difference between
the initial overpayment and the recalculated overpayment shall
be refunded to those service retirement pensioners with
interest.
(Source: P.A. 102-1013, eff. 5-27-22; 102-1090, eff. 6-10-22;
103-154, eff. 6-30-23.)
Section 90. The State Mandates Act is amended by adding
Section 8.48 as follows:

SB3346 - 9 - LRB103 38204 RPS 68338 b
(30 ILCS 805/8.48 new)
Sec. 8.48. Exempt mandate. Notwithstanding Sections 6 and
8 of this Act, no reimbursement by the State is required for
the implementation of any mandate created by this amendatory
Act of the 103rd General Assembly.