Bill Text: IL HB4580 | 2023-2024 | 103rd General Assembly | Introduced

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Bill Title: Amends the State Employees Group Insurance Act of 1971. Provides that the eligibility of an annuitant or TRS benefit recipient to participate in the program of health benefits established under specified provisions of the Act shall not be suspended for any period during which he or she accepts employment from a school board or other employer in accordance with a provision of the Downstate Teacher Article of the Illinois Pension Code that allows annuitants to accept employment as a teacher without impairing retirement status if certain conditions are met, including a limit on the number of paid days the annuitant may work, or a provision for annuitants returning to teach in a subject shortage area. Provides that an annuitant or TRS benefit recipient shall not be deemed an active teacher based solely on the annuitant's or TRS benefit recipient's employment exceeding the limit on the number of paid days an annuitant may work without impairing retirement status. Amends the Downstate Teacher Article of the Illinois Pension Code to make conforming changes.

Spectrum: Partisan Bill (Republican 1-0)

Status: (Introduced) 2024-01-31 - Referred to Rules Committee [HB4580 Detail]

Download: Illinois-2023-HB4580-Introduced.html

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103RD GENERAL ASSEMBLY State of Illinois 2023 and 2024 HB4580 Introduced , by Rep. Ryan Spain SYNOPSIS AS INTRODUCED:
5 ILCS 375/6.20 new
40 ILCS 5/16-118 from Ch. 108 1/2, par. 16-118
40 ILCS 5/16-150.1
Amends the State Employees Group Insurance Act of 1971. Provides that the eligibility of an annuitant or TRS benefit recipient to participate in the program of health benefits established under specified provisions of the Act shall not be suspended for any period during which he or she accepts employment from a school board or other employer in accordance with a provision of the Downstate Teacher Article of the Illinois Pension Code that allows annuitants to accept employment as a teacher without impairing retirement status if certain conditions are met, including a limit on the number of paid days the annuitant may work, or a provision for annuitants returning to teach in a subject shortage area. Provides that an annuitant or TRS benefit recipient shall not be deemed an active teacher based solely on the annuitant's or TRS benefit recipient's employment exceeding the limit on the number of paid days an annuitant may work without impairing retirement status. Amends the Downstate Teacher Article of the Illinois Pension Code to make conforming changes.
LRB103 37220 RPS 67339 b
A BILL FOR
HB4580 LRB103 37220 RPS 67339 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 State Employees Group Insurance Act of 1971
is amended by adding Section 6.20 as follows:
(5 ILCS 375/6.20 new)
Sec. 6.20. Retired teacher returning to service.
Notwithstanding any other provision of this Act, the
eligibility of an annuitant or TRS benefit recipient to
participate in the program of health benefits established
under Section 6 or 6.5 of this Act shall not be suspended for
any period during which he or she accepts employment from a
school board or other employer in accordance with Section
16-118 or Section 16-150.1 of the Illinois Pension Code. An
annuitant or TRS benefit recipient shall not be deemed an
active teacher based solely on the annuitant's or TRS benefit
recipient's employment exceeding the limits under paragraph
(2) of subsection (a) of Section 16-118 of the Illinois
Pension Code or participation in the program under Section
16-150.1 of the Illinois Pension Code.
Section 10. The Illinois Pension Code is amended by
changing Sections 16-118 and 16-150.1 as follows:

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(40 ILCS 5/16-118) (from Ch. 108 1/2, par. 16-118)
Sec. 16-118. Retirement. "Retirement": Entry upon a
retirement annuity or receipt of a single-sum retirement
benefit granted under this Article after termination of active
service as a teacher.
(a) An annuitant receiving a retirement annuity other than
a disability retirement annuity may accept employment as a
teacher from a school board or other employer specified in
Section 16-106 without impairing retirement status, if that
employment:
(1) is not within the school year during which service
was terminated; and
(2) does not exceed the following:
(i) before July 1, 2001, 100 paid days or 500 paid
hours in any school year;
(ii) during the period beginning July 1, 2001
through June 30, 2011, 120 paid days or 600 paid hours
in each school year;
(iii) during the period beginning July 1, 2011
through June 30, 2018, 100 paid days or 500 paid hours
in each school year;
(iv) beginning July 1, 2018 through June 30, 2026,
120 paid days or 600 paid hours in each school year,
but not more than 100 paid days in the same classroom;
(v) (blank); and

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(vi) beginning July 1, 2026, 100 paid days or 500
paid hours in each school year.
Where such permitted employment is partly on a daily and
partly on an hourly basis, a day shall be considered as 5
hours.
An annuitant whose employment exceeds the amount specified
in paragraph (2) shall not be deemed an active teacher for
purposes of eligibility for group health benefits and may
continue to participate in the program of health benefits
established under Section 6 or 6.5 of the State Employees
Group Insurance Act of 1971.
(b) Subsection (a) does not apply to an annuitant who
returns to teaching under the program established in Section
16-150.1, for the duration of his or her participation in that
program.
(Source: P.A. 102-537, eff. 8-20-21; 102-709, eff. 4-22-22;
103-88, eff. 6-9-23; 103-525, eff. 8-11-23.)
(40 ILCS 5/16-150.1)
Sec. 16-150.1. Return to teaching in subject shortage
area.
(a) As used in this Section, "eligible employment" means
employment beginning on or after July 1, 2003 and ending no
later than June 30, 2024, in a subject shortage area at a
qualified school, in a position requiring certification under
the law governing the certification of teachers.

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As used in this Section, "qualified school" means a public
elementary or secondary school that meets all of the following
requirements:
(1) At the time of hiring a retired teacher under this
Section, the school is experiencing a shortage of teachers
in the subject shortage area for which the teacher is
hired.
(2) The school district to which the school belongs
has complied with the requirements of subsection (e), and
the regional superintendent has certified that compliance
to the System.
(3) If the school district to which the school belongs
provides group health benefits for its teachers generally,
substantially similar health benefits are made available
for teachers participating in the program under this
Section, without any limitations based on pre-existing
conditions.
(b) An annuitant receiving a retirement annuity under this
Article (other than a disability retirement annuity) may
engage in eligible employment at a qualified school without
impairing his or her retirement status or retirement annuity,
subject to the following conditions:
(1) the eligible employment does not begin within the
school year during which service was terminated;
(2) the annuitant has not received any early
retirement incentive under Section 16-133.3, 16-133.4, or

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16-133.5;
(3) if the annuitant retired before age 60 and with
less than 34 years of service, the eligible employment
does not begin within the year following the effective
date of the retirement annuity;
(4) if the annuitant retired at age 60 or above or with
34 or more years of service, the eligible employment does
not begin within the 90 days following the effective date
of the retirement annuity; and
(5) before the eligible employment begins, the
employer notifies the System in writing of the annuitant's
desire to participate in the program established under
this Section.
(c) An annuitant engaged in eligible employment in
accordance with subsection (b) shall be deemed a participant
in the program established under this Section for so long as he
or she remains employed in eligible employment.
(d) A participant in the program established under this
Section continues to be a retirement annuitant, rather than an
active teacher, for all of the purposes of this Code, but shall
be deemed an active teacher for other purposes, such as
inclusion in a collective bargaining unit, eligibility for
group health benefits, and compliance with the laws governing
the employment, regulation, certification, treatment, and
conduct of teachers. A participant in the program established
under this Section may continue to participate in the program

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of health benefits established under Section 6 or 6.5 of the
State Employees Group Insurance Act of 1971.
With respect to an annuitant's eligible employment under
this Section, neither employee nor employer contributions
shall be made to the System and no additional service credit
shall be earned. Eligible employment does not affect the
annuitant's final average salary or the amount of the
retirement annuity.
(e) Before hiring a teacher under this Section, the school
district to which the school belongs must do the following:
(1) If the school district to which the school belongs
has honorably dismissed, within the calendar year
preceding the beginning of the school term for which it
seeks to employ a retired teacher under the program
established in this Section, any teachers who are legally
qualified to hold positions in the subject shortage area
and have not yet begun to receive their retirement
annuities 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 retired teacher
under the program established in this Section, the school
district must, on an ongoing basis, (i) advertise its
vacancies in the subject shortage area in employment
bulletins published by college and university placement

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