SB 438 — PEN CD-CHGO TEACH-RE-EMPLOYED

*LRB09903098RPS23106b* SB0438 99THEngrossed GENERALLRB099 ASSEMBLY03098 StateRPS of23106 Illinoisb andAN 2016ACT SB0438concerning Introducedpublic 1/28/2015,employee bybenefits. Sen.

John J.

Cullerton SYNOPSIS AS INTRODUCED:

ILCS 5/13-101 from Ch.

108 1/2, par.

13-101 Amends the Illinois Pension Code.

Makes a technical change in a Section concerning the Metropolitan Water Reclamation District.

LRB099 03098 RPS 23106 b PENSION IMPACT NOTE ACT MAY APPLY A BILL FOR SB0438 LRB099 03098 RPS 23106 b AN ACT concerning public employee benefits.

The Illinois Pension Code is amended by changing Section 13-10117-149 as follows:

(40 ILCS 5/13-101)5/17-149) (from Ch.

13-101)17-149) Sec.

13-101.17-149.

CreationCancellation of Fund.pensions.

In(a) eachIf sanitaryany districtperson organizedreceiving undera thedisability theretirement Metropolitanpension Waterfrom Reclamationthe DistrictFund Act,is are-employed Sanitaryas Districta Employees'teacher andby Trustees'an AnnuityEmployer, andthe Benefitpension Fund shall be created,cancelled seton apart,the maintaineddate andthe administered,re-employment inbegins, theor manneron prescribedthe infirst thisday Articleof fora thepayroll benefitperiod offor thewhich employeesservice hereincredit designatedwas andvalidated, theirwhichever beneficiaries.is earlier.

Beginning(b) JanuaryIf 1,any 1992,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 knowncancelled ason the Metropolitandate Waterthe Reclamationre-employment Districtbegins, Retirementor Fund.on the first day of a payroll period for which service credit was validated, whichever is earlier.

(Source:However, subject to the limitations and requirements of subsection (c-5), 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 SB0438 Engrossed - 2 - LRB099 03098 RPS 23106 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) 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 and (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) SB0438 Engrossed - 3 - LRB099 03098 RPS 23106 b this amendatory Act of the 97th General Assembly.

Such re-employment does not require contributions, result in service credit, or constitute active membership in the Fund.

Notwithstanding the 100-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 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 the effective date of this amendatory Act, then within 30 days after that effective date).

The Board of Education 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 SB0438 Engrossed - 4 - LRB099 03098 RPS 23106 b 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) this amendatory Act of the 97th General Assembly, 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 the effective date of this amendatory Act of the 99th General Assembly, the service retirement pension shall thereupon be cancelled.

The Board of the Fund shall adopt rules for the implementation and administration of this subsection.

(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 to this Section and Section 17-106 made by Public Act 92-599 apply without regard to whether termination of service occurred before the effective date of that Act.

Notwithstanding Sections 1-103.1 and 17-157, the changes to this Section made by this amendatory Act of the 97th General Assembly apply without regard to whether termination of service occurred before the effective date of this amendatory Act.

SB0438 Engrossed - 5 - LRB099 03098 RPS 23106 b (Source:

87-794.)97-912, eff.

8-8-12.) Section 99.

Effective date.

This Act takes effect upon becoming law.