2007 House Bill 4799

Limit dual state employee school pension/salary loophole

Introduced in the House

May 17, 2007

Introduced by Rep. Lorence Wenke (R-63)

To repeal a provision of the school employee pension law that allows an employee to “retire,” start collecting a pension, and then return to work for a school district, collecting a wage or salary while simultaneously collecting pension benefits ("double dipping"). The bill would suspend pension payments while an individual worked for a school. The bill is part of a government pension reform package comprised of House Bills 4799 to 4809.

Referred to the Committee on Education

May 25, 2007

Substitute offered by Rep. Steve Tobocman (D-12)

To replace the previous version of the bill with one that creates exceptions, and so does not repeal the loophole. Through 2009, a school employee would be allowed to collect both pension benefits and a salary if he or she was employed by a school district that has a teacher shortage. Note: In many if not most cases, this is currently the reason usually given to justify what has been characterized as “double dipping”.

The substitute passed by voice vote

Passed in the House 58 to 45 (details)

To revise a provision of the school employee pension law that allows an employee to “retire,” start collecting a pension, and then return to work for a school district, collecting a wage or salary while simultaneously collecting pension benefits. However, through 2009 a teacher would be allowed to collect both pension benefits and a salary if he or she was employed by a school district that has a teacher shortage. Note: In many if not most cases, this is currently the reason usually given to justify what has been characterized as “double dipping”.

Received in the Senate

May 29, 2007

Referred to the Committee on Education

Sept. 23, 2007

Amendment offered

To clarify that a retiree who is again working for a school as or for a private contractor must ensure that the individual's post retirement health care benefits are coordinated with the those offered by the contractor, so that the latter receives first call on an any claims.

The amendment passed by voice vote

Passed in the Senate 35 to 3 (details)

To revise a provision of the school employee pension law that allows an employee to “retire,” start collecting a pension, and then return to work for a school district, collecting a wage or salary while simultaneously collecting pension benefits. However, through 2009 a teacher would be allowed to collect both pension benefits and a salary if he or she was employed by a school district that has a teacher shortage. Note: In many if not most cases, this is currently the reason usually given to justify what has been characterized as “double dipping”.

Received in the House

Sept. 23, 2007

Received in the Senate

Oct. 11, 2007

Motion by Sen. Alan L. Cropsey (R-33)

That rule 3.311 be suspended to permit reconsideration of the vote by which the bill was passed.

The motion passed by voice vote

Motion by Sen. Alan L. Cropsey (R-33)

To reconsider the vote by which the bill was passed.

The motion passed by voice vote

Motion by Sen. Alan L. Cropsey (R-33)

That the bill be referred to the Committee on Education.

The motion passed by voice vote

Referred to the Committee on Education