Section 1600.500  Rules of Practice − Nature and Requirements of Formal Hearings

a)         Administrative Determination

The administrative staff of the System shall be responsible for the daily claims-processing function of the System, including processing of all claims for benefits or service credit or any other claims against or relating to the System.

b)         Review by Deputy Director

Any participant, annuitant, or beneficiary adversely affected by the disposition of a claim by the administrative staff may file a written request for review by the appropriate Deputy Director of the System.  A request for review by the Deputy Director must be submitted within 30 days after the decision from which review is sought.  The Deputy Director's review will be based upon all materials contained in the file, as well as any additional materials the claimant attaches to the written request for review filed with the Deputy Director pertaining to the claim.

c)         Hearing

1)         Petition.  Any participant, annuitant, or beneficiary adversely affected by the disposition of a claim by the Deputy Director may request, in writing, a Hearing before the Claims Committee.  A request for a Hearing must be submitted to the General Counsel of the System, or his or her designee, within 30 days after the decision from which review is sought.

2)         Statement of Claim.  Upon filing a request for a Hearing, the claimant shall be informed that he or she is required to file a Statement of Claim no later than 30 days in advance of Hearing, which shall include:  the claimant's name, social security number, and address; the name and address of the claimant's authorized representative, if any; a statement of the facts forming the basis for the appeal; any documents or other materials the claimant wishes to be considered in conjunction with the appeal; and an explanation of the relief sought.

3)         Notification.  Upon scheduling of a Hearing before the Claims Committee, a claimant shall be provided with written notice of:  the date, time and place of the Hearing; the subject matter of the Hearing; and relevant procedural and substantive statutory and regulatory provisions [5 ILCS 100/10-25].  Notice of the Hearing shall also inform the claimant that he or she will be afforded the opportunity to provide a statement of his or her position, present oral evidence, and conduct such examination and cross-examination of witnesses as is necessary for full and true disclosure of the facts.  Notice shall be given to the claimant that he or she is required to provide written confirmation, at least three days prior to the scheduled date of the Hearing, of his or her intent to appear at the Hearing, whether in person or by telephone conference call.  The claimant is not required to appear at the Hearing. The claimant may appear at the hearing by telephone conference call. In the absence of the claimant, the Claims Committee will consider the claimant's Statement of Claim and such other matters as may be properly brought before it at the Hearing.

4)         Pre-hearing Conference.  Upon request of the General Counsel or upon the decision of the Hearing Officer, a pre-hearing conference shall be held for the purpose of simplification or definition of issues or procedures at the Hearing.

5)         Representation.  The claimant and the System may be represented by counsel or a designated spokesperson at the Hearing.

6)         Burden of Proof.  It shall be the burden of the claimant to establish a right to the benefit claimed, or the right to the continuation of the benefit claimed in cases of revocation of the benefit by the System, by establishing such right by a preponderance of the evidence.

7)         Discovery.  All discovery is at the discretion of the Hearing Officer.  Requests to take discovery must be made in writing to the Hearing Officer with notice to the other party.  Discovery may be taken with the prior permission of the Hearing Officer only upon good cause shown, that is, if the evidence sought is material and cannot be obtained in any other way.  Failure to comply with orders of the Hearing Officer may be sanctioned by the Hearing Officer, by sanctions including, but not limited to, dismissal of a claim.

e)         Depositions

1)         The Hearing Officer may order the taking of evidence depositions, specifying the subject matter to be covered, of a person under oral examination or written questions, for use as evidence at the Hearing, provided:

A)        The Hearing Officer has determined upon request that there is a need to preserve a person's testimony;

B)        Such request is made on motion by a party who gives notice of such motion to the other party; and

C)        The Hearing Officer has determined that an evidence deposition containing such oral testimony will be necessary to the Claims Committee in determining the merits of the claim.

2)         The taking of depositions shall be in accordance with the provisions for taking depositions in civil cases, and the order for the taking of a deposition may provide that any designated books, papers, documents, or tangible objects that are not privileged shall be produced at the same time and place.

3)         Any party to the Hearing shall, during any deposition process, have the right to confront and cross-examine any witness whose deposition testimony is to be presented to the Claims Committee.

4)         Depositions shall be taken in the county of residence or employment of the witness, unless the witness waives such right in writing.

5)         Depositions shall be taken at the cost of the party requesting the deposition.

f)          Subpoenas

1)         The Hearing Officer may request the Secretary of the Board to issue a subpoena to compel the attendance of a witness at an evidence deposition or the production of documents when such witness has, or such documents contain, relevant evidence.  A party may also request the Hearing Officer to request the Secretary of the Board to issue a subpoena to compel the attendance of a witness at an evidence deposition or the production of documents.  The request shall either be in writing or on the record and shall:

A)       Identify the witness or document sought; and

B)       State the facts that will be proven by each witness or document sought.

2)         The Hearing Officer shall grant or deny the request, either in writing or on the record.  If the request for subpoena is granted, the Hearing Officer shall, if necessary, reschedule the hearing to a specific date.  The request for subpoena shall be denied if the Hearing Officer finds that the evidence sought is immaterial, irrelevant, or cumulative.  If the request for subpoena is denied, the specific reasons for denial of the request shall be made part of the record on appeal.

3)         If a witness fails to obey a subpoena, the party seeking enforcement of the subpoena shall prepare an application to the circuit court of the county in which the subpoenaed witness resides requesting enforcement of the subpoena, and shall present the application to the Hearing Officer, at the same time serving a copy of the application upon the other party.  If satisfied that the subpoena was properly served and that the application is in proper form, the Hearing Officer shall sign a subpoena to be submitted with the application and the party seeking the subpoena may then file and prosecute the application to the circuit court, in the name of the Board of Trustees of the System.  The petitioner in the application shall be styled as "Name of Petitioner ex rel. Board of Trustees of the State Universities Retirement System of Illinois" unless the petitioner is the System, in which case the petition shall be brought in the name of the Board of Trustees.  In the event of an application being filed with the circuit court, the matter shall be continued pending the outcome of the application to enforce the subpoena.

4)         The fees of witnesses for attendance and travel shall be the same as fees of witnesses before the circuit courts of this State and shall be paid by the party seeking the subpoena.

g)         Conduct of the Hearing

1)         Hearing Officer.  The Hearing shall be conducted by the Hearing Officer.  Other members of the Claims Committee may, but are not required to, attend the hearing.  The Hearing Officer shall have full power to conduct the Hearing and the presence of any other members of the Claims Committee is not required.  The Hearing Officer shall be one of the members of the Claims Committee chosen by them to be the Hearing Officer.  The Claims Committee shall be composed of the Executive Director of the System (the agency head) and two additional members chosen by the Board of Trustees, at least one of whom shall be a Board member.  The final member of the Claims Committee shall be selected from the membership of the Board of Trustees, participants in the System, or attorneys licensed to practice law in the State of Illinois.  At a minimum, the members of the Claims Committee shall have a general familiarity with the provisions of the Illinois Pension Code and the rules, regulations, and policies of the System.

2)         Procedures.  The Hearing Officer shall conduct a full and fair Hearing, receive testimony of the claimant and admit exhibits into evidence, avoid delay, maintain order and make a sufficient record for a full and true disclosure of the facts and issues.  To accomplish these ends, the Hearing Officer shall make all procedural and evidentiary rulings necessary for the conduct of the Hearing.  As a general matter, the rules of evidence as applied in civil cases in the circuit courts of the State of Illinois shall be followed; however, evidence inadmissable under those rules may be admitted (except where precluded by statute) if it is of a type commonly relied upon by reasonably prudent persons in the conduct of their affairs.  Any part of the evidence may be received in written form, provided that the interests of the parties will not be prejudiced.  Notice may be taken of generally recognized technical facts within the agency's specialized knowledge and the agency's experience, technical competence and specialized knowledge may be used in evaluation of the evidence. [5 ILCS 100/10-40]  The Hearing Officer, and any member of the Claims Committee attending the hearing, may ask questions necessary for better understanding of the facts or law.  The Hearing Officer shall have the authority to impose reasonable time limits for each party to present its case and shall, in general, have the power to manage and control the Hearing process. The Hearing shall be open to the public unless the Hearing Officer, for good cause shown, determines otherwise.

3)         Record of Proceedings.  Two records of proceedings shall be kept that shall be in the form of:

A)        a non-verbatim "bystander's report", and

B)         either a stenographic transcription or a tape recording.  The claimant may obtain a stenographic transcription or a copy of a tape recording of the Hearing by making a timely request and paying the actual cost entailed.

4)         Disqualification; Ex Parte Communications

A)        Disqualification.  A Hearing Officer or other member of the Claims Committee may be disqualified on grounds of bias or conflict of interest.  A motion to disqualify a Hearing Officer or other member of the Claims Committee for bias or conflict of interest should be made to the Hearing Officer by any party to the Hearing at least one week prior to the commencement of the Hearing, with a copy of the motion to be simultaneously submitted to the General Counsel.  The motion shall be heard, considered and ruled upon by the Hearing Officer at or prior to the commencement of the Hearing.  The movant shall have the burden of proof with respect to the motion to disqualify.  Either an adverse ruling or the fact that a Hearing Officer or other member of the Claims Committee is an employee of the System or has a contract with the System, standing alone, shall not constitute bias or conflict of interest. [5 ILCS 100/10-30]  The Executive Director may not be called as a witness unless it is demonstrated that the Executive Director has relevant noncumulative personal knowledge of facts bearing upon the claim.  The Executive Director may not be disqualified as a member of the Claims Committee on the basis that the Executive Director is responsible for the overall administration of the System.  In the event that a Hearing Officer or other member of the Claims Committee is disqualified or is otherwise unable to serve, the Board President may appoint another person to the Claims Committee and shall appoint another person if the Claims Committee is reduced to fewer than two members, or the Claims Committee shall appoint another Hearing Officer from among its members, as the case may be.

B)        Ex Parte Communications Prohibited.  Except in the disposition of matters that the System is authorized by law to entertain or dispose of on an ex parte basis, the members of the Claims Committee shall not, after receiving notice of a Hearing in a contested matter, communicate, directly or indirectly, in connection with any issue of fact, with any party, or in connection with any other issue with any party, or the representative of any party, except upon notice and opportunity for all parties to participate. However, an employee of the System may communicate with other employees of the System and an employee of the System or member of the Claims Committee may have the aid and advice of one or more assistants.  An ex parte communication received by any member of the Claims Committee shall be made a part of the record of the pending matter, including all written communications, all written responses to the communications, and a memorandum stating the substance of all oral communications and all responses made and the identity of each person from whom the ex parte communication was received.  Communications regarding matters of procedure and practice, such as the format of pleadings, number of copies required, manner of service, and status of proceedings, are not considered ex parte communications.  [5 ILCS 100/10-60]

5)         Recommendations and Decisions

A)        Claims Committee Recommendation.  Upon conclusion of all evidence and arguments, the Claims Committee shall privately deliberate and make a recommendation as to the disposition of the claim based on the evidence of record.  The record of proceedings shall be completed upon conclusion of the hearing by the Hearing Officer, unless the Hearing Officer determines to re-open the proceedings.  The Claims Committee shall make one of the following recommendations:  affirmance of the administrative action, reversal of the administrative action, or remand of the case to the administrative staff for further consideration.  The recommendation of the Claims Committee shall be made to the Executive Committee of the Board of Trustees.  The claimant may file a statement of exceptions to the findings of the Claims Committee and may file a brief in support of its statement of exceptions.  The statement of exceptions and brief must be submitted to the General Counsel not less than 30 days prior to the date that the Executive Committee is scheduled to hear this claim, as set forth in written notice to the claimant. The notice shall be given not less than 60 days prior to the meeting of the Executive Committee.  The System may file a reply brief not less than 7 days prior to the date that the Executive Committee is scheduled to hear this claim.  The recommended decision of the Claims Committee is a non-final decision, subject to the ultimate decision of the Executive Committee of the Board of Trustees.

B)        Executive Committee Decision.  The Executive Committee of the Board of Trustees shall make a decision on the claim following receipt of a recommended decision from the Claims Committee, any statement of exceptions or brief filed by the claimant, and any reply brief filed by the System.  No oral argument shall be permitted before the Executive Committee unless otherwise determined by the Executive Committee.   The Executive Committee shall consider the recommendation of the Claims Committee, any statement of exceptions or brief filed by the claimant, any reply brief of the System, and any permitted oral argument in making a decision for the System as to the disposition of the claim.  The Executive Committee shall render one of the following decisions with respect to the claim:  affirmance of the administrative action, reversal of the administrative action, or remand of the case to the administrative staff for further consideration.  Remand of the case to the administrative staff shall not be considered a final decision of the Executive Committee.  A decision by the Executive Committee either reversing or affirming the decision of the administrative staff shall constitute a final decision for the purpose of review under the Administrative Review Law [735 ILCS 5/Art. III].  A final decision of the Executive Committee shall be in writing or stated in the record.  A final decision of the Executive Committee shall include findings of fact and conclusions of law, separately stated.  The Executive Committee may adopt as its own the findings of fact and conclusions of law of the Claims Committee.  Findings of fact, if set forth in statutory language, shall be accompanied by a concise and explicit statement of the underlying facts supporting the findings.  All decisions of the Executive Committee shall specify whether they are final and subject to the Administrative Review Law.  [5 ILCS 100/10-50]  Parties or their agents shall be notified either personally or by registered or certified mail of any decision of the Executive Committee.  Upon request, a copy of the decision shall be delivered or mailed to each party and to his or her attorney of record.

(Source:  Amended at 23 Ill. Reg. 13667, effective November 1, 1999; recodified from Section 1600.80 to Section 1600.500 at 31 Ill. Reg. 10194)