102ND GENERAL ASSEMBLY
State of Illinois
2021 and 2022
SB2907

 

Introduced 5/31/2021, by Sen. Robert F. Martwick

 

SYNOPSIS AS INTRODUCED:
 
40 ILCS 5/17-151.1

    If and only if Senate Bill 1056 of the 102nd General Assembly, as amended by House Amendment 1, becomes law, amends the Chicago Teacher Article of the Illinois Pension Code. Provides that if an annuitant does not elect to repay a mistaken overpayment from the Fund by a lump sum, monthly payments, or reduction of the corrected benefit, the annuitant may have his or her automatic annual increase discontinued beginning in January of the following calendar year until the pension payment matches his or her corrected pension rate. Provides that upon full repayment, the annuitant's automatic annual increase shall resume at the rate of increase equivalent to a comparable annuitant whose automatic annual increase was not discontinued. Removes language that provides that if (1) the amount of the benefit was mistakenly set too high, (2) the error was undiscovered for 3 years or longer from the date of the first mistaken benefit payment, and (3) the error was not the result of incorrect information supplied by the affected member, then upon discovery of the mistake the benefit shall be adjusted to the correct level, but the recipient of the benefit shall not be required to repay to the Fund the excess amounts received in error. Effective immediately or on the date Article 20 of Senate Bill 1056 takes effect, whichever is later.


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FISCAL NOTE ACT MAY APPLY
PENSION IMPACT NOTE ACT MAY APPLY
STATE MANDATES ACT MAY REQUIRE REIMBURSEMENT

 

 

A BILL FOR

 

SB2907LRB102 18620 SMS 26969 b

1    AN ACT concerning public employee benefits.
 
2    Be it enacted by the People of the State of Illinois,
3represented in the General Assembly:
 
4    Section 5. If and only if Senate Bill 1056 of the 102nd
5General Assembly, as amended by House Amendment 1, becomes
6law, then the Illinois Pension Code is amended by changing
7Section 17-151.1 as follows:
 
8    (40 ILCS 5/17-151.1)
9    Sec. 17-151.1. Recovery of amount paid in error.
10    (a) The Board may retain out of any annuity or benefit
11payable to any person any amount that the Board determines is
12owing to the Fund because (i) required employee contributions
13were not made in whole or in part, (ii) employee or member
14obligations to return refunds were not met, or (iii) money was
15paid to any employee, member, or annuitant through
16misrepresentation, fraud, or error.
17    If the Fund mistakenly sets any benefit at an incorrect
18amount, the Fund shall recalculate the benefit as soon as may
19be practicable after the mistake is discovered. The Fund shall
20provide the recipient, or the survivor or beneficiary of the
21recipient, as the case may be, with at least 60 days' notice of
22the corrected amount.
23    If the benefit was mistakenly set too low, the Fund shall

 

 

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1make a lump sum payment to the recipient, or the survivor or
2beneficiary of the recipient, as the case may be, of an amount
3equal to the difference between the benefits that should have
4been paid and those actually paid, plus interest at the rate of
53% from the date the unpaid amounts accrued to the date of
6payment.
7    If the benefit was mistakenly set too high, the Fund may
8recover the amount overpaid from the recipient, or the
9survivor or beneficiary of the recipient, as the case may be,
10plus interest at 3% from the date of overpayment to the date of
11recovery. The recipient, or the survivor or beneficiary of the
12recipient, as the case may be, may elect to repay the sum owed
13either directly by a lump sum payment, in agreed-upon monthly
14payments over a period not to exceed 5 years, or through an
15actuarial equivalent reduction of the corrected benefit. If
16the annuitant does not elect to repay the sum owed directly by
17a lump sum payment, in agreed-upon monthly payments, or
18through an actuarial equivalent reduction of the corrected
19benefit, the annuitant may have his or her automatic annual
20increase discontinued beginning in January of the following
21calendar year until the pension payment matches his or her
22corrected pension rate. Upon full repayment, the annuitant's
23automatic annual increase shall resume at the rate of increase
24equivalent to a comparable annuitant whose automatic annual
25increase was not discontinued. However, if (1) the amount of
26the benefit was mistakenly set too high, (2) the error was

 

 

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1undiscovered for 3 years or longer from the date of the first
2mistaken benefit payment, and (3) the error was not the result
3of incorrect information supplied by the affected member, then
4upon discovery of the mistake the benefit shall be adjusted to
5the correct level, but the recipient of the benefit shall not
6be required to repay to the Fund the excess amounts received in
7error.
8    (b) The Board and the Fund shall be held free from any
9liability for any money retained or paid in accordance with
10this Section, and the employee, member, or pensioner shall be
11assumed to have assented and agreed to the disposition of
12money due.
13    (c) The changes made by this amendatory Act of the 94th
14General Assembly are not limited to persons in service on or
15after the effective date of this amendatory Act.
16(Source: P.A. 94-425, eff. 8-2-05; 10200SB1056ham001.)
 
17    Section 99. Effective date. This Act takes effect upon
18becoming law or on the date that Article 20 of Senate Bill 1056
19of the 102nd General Assembly takes effect, whichever is
20later.