| |||||||
| |||||||
| |||||||
| 1 | AN ACT concerning public employee benefits.
| ||||||
| 2 | Be it enacted by the People of the State of Illinois,
| ||||||
| 3 | represented in the General Assembly:
| ||||||
| 4 | Section 5. The Illinois Pension Code is amended by | ||||||
| 5 | changing Section 15-186.1 as follows:
| ||||||
| 6 | (40 ILCS 5/15-186.1) (from Ch. 108 1/2, par. 15-186.1)
| ||||||
| 7 | Sec. 15-186.1. Mistake in benefit calculation and | ||||||
| 8 | overpayment recovery. | ||||||
| 9 | (a) Mistake in benefit calculation. If the System | ||||||
| 10 | mistakenly sets any
benefit at an incorrect amount, it shall | ||||||
| 11 | recalculate the benefit as soon as
may be practicable after | ||||||
| 12 | the mistake is discovered. If the benefit was mistakenly set | ||||||
| 13 | too low, the System shall make a lump
sum payment to the | ||||||
| 14 | recipient of an amount equal to the difference between
the | ||||||
| 15 | benefits that should have been paid and those actually paid, | ||||||
| 16 | plus
interest at the effective rate from the date the unpaid | ||||||
| 17 | amounts accrued to
the date of payment.
| ||||||
| 18 | If the benefit was mistakenly set too high, the System may | ||||||
| 19 | recover the
amount overpaid from the recipient thereof, plus | ||||||
| 20 | interest at the effective
rate from the date of overpayment to | ||||||
| 21 | the date of recovery, either directly
or by deducting
such | ||||||
| 22 | amount from the remaining benefits payable to the recipient. | ||||||
| 23 | However,
if (1) the amount of the benefit was mistakenly set | ||||||
| |||||||
| |||||||
| 1 | too high, and (2) the
error was undiscovered for 3 years or | ||||||
| 2 | longer, and (3) the error was not the
result of incorrect | ||||||
| 3 | information supplied or information omitted by the affected | ||||||
| 4 | member or
beneficiary, then upon discovery of the mistake the | ||||||
| 5 | benefit shall be
adjusted to the correct level, but the | ||||||
| 6 | recipient of the benefit need not
repay to the System the | ||||||
| 7 | excess amounts received in error.
| ||||||
| 8 | (b) Overpayment recovery. Regardless of the date an | ||||||
| 9 | overpayment is discovered, if the System determines that the | ||||||
| 10 | overpayment has occurred for any reason other than those | ||||||
| 11 | specified in subsection (a) of this Section, the System may | ||||||
| 12 | recover the overpayment from the recipient thereof or the | ||||||
| 13 | recipient's estate, plus interest at the effective rate from | ||||||
| 14 | the date of the overpayment to the date of recovery, either | ||||||
| 15 | directly or by deducting such amount from the remaining | ||||||
| 16 | benefits payable to the recipient or the recipient's estate, | ||||||
| 17 | or by any other means available to the System. This subsection | ||||||
| 18 | (b) applies to overpayments occurring before, on, or after the | ||||||
| 19 | effective date of this amendatory Act of the 102nd General | ||||||
| 20 | Assembly. | ||||||
| 21 | (Source: P.A. 93-347, eff. 7-24-03.)
| ||||||
| 22 | Section 99. Effective date. This Act takes effect upon | ||||||
| 23 | becoming law.
| ||||||