SB1956 EngrossedLRB103 25834 RPS 52185 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. The Illinois Pension Code is amended by adding
5Section 5-240 as follows:
 
6    (40 ILCS 5/5-240 new)
7    Sec. 5-240. Action by Fund against third party;
8subrogation. In those cases where the injury or death for
9which a disability or death benefit is payable under this
10Article was caused under circumstances creating a legal
11liability on the part of some person or entity ("third party")
12to pay damages to the policeman, legal proceedings may be
13taken against such third party to recover damages
14notwithstanding the Fund's payment of or liability to pay
15disability or death benefits under this Article. In such case,
16however, if the action against such third party is brought by
17the injured policeman or his or her personal representative
18and judgment is obtained and paid, or settlement is made with
19such third party, either with or without suit, from the amount
20received by such policeman or personal representative, then
21there shall be paid to the Fund the amount of money
22representing the death or disability benefits paid or to be
23paid to the disabled policeman pursuant to the provisions of

 

 

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1this Article. In all circumstances where the action against a
2third party is brought by the disabled policeman or his or her
3personal representative, the Fund shall have a claim or lien
4upon any recovery, by judgment or settlement, out of which the
5disabled policeman or his or her personal representative might
6be compensated from such third party. The Fund may satisfy or
7enforce any such claim or lien only from that portion of a
8recovery that has been, or can be, allocated or attributed to
9past and future lost salary, which recovery is by judgment or
10settlement. The Fund's claim or lien shall not be satisfied or
11enforced from that portion of a recovery that has been, or can
12be, allocated or attributed to medical care and treatment,
13pain and suffering, loss of consortium, and attorney's fees
14and costs.
15    Where an action is brought by the disabled policeman or
16his or her personal representative, the disabled policeman or
17his or her personal representative shall forthwith notify the
18Fund, by personal service or registered mail, of such fact and
19of the name of the court where such suit is brought, filing
20proof of such notice in such action. The Fund may, at any time
21thereafter, intervene in such action upon its own motion.
22Therefore, no release or settlement of claim for damages by
23reason of injury to the disabled policeman, and no
24satisfaction of judgment in such proceedings, shall be valid
25without the written consent of the Board of Trustees
26authorized by this Code to administer the Fund created under

 

 

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1this Article, except that such consent shall be provided
2expeditiously following a settlement or judgment.
3    If the disabled policeman or his or her personal
4representative has not instituted an action against a third
5party at a time when only 3 months remain before such action
6would thereafter be barred by law, the Fund may, in its own
7name or in the name of the personal representative, commence a
8proceeding against such third party seeking the recovery of
9all damages on account of injuries caused to the policeman.
10From any amount so recovered, the Fund shall pay to the
11personal representative of such disabled policeman all sums
12collected from such third party by judgment or otherwise in
13excess of the amount of disability or death benefits paid or to
14be paid under this Article to the disabled policeman or his
15personal representative, and such costs, attorney's fees, and
16reasonable expenses as may be incurred by the Fund in making
17the collection or in enforcing such liability. The Fund's
18recovery shall be satisfied only from that portion of a
19recovery that has been or can be allocated or attributed to
20past and future lost salary, which recovery is by judgment or
21settlement. The Fund's recovery shall not be satisfied from
22that portion of the recovery that has been or can be allocated
23or attributed to medical care and treatment, pain and
24suffering, loss of consortium, and attorney's fees and costs.
25Additionally, with respect to any right of subrogation
26asserted by the Fund under this Section, the Fund, in the

 

 

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1exercise of discretion, may determine what amount from past or
2future salary shall be appropriate under the circumstances to
3collect from the recovery obtained on behalf of the disabled
4policeman.
5    Any recovery obtained by the Fund pursuant to this Section
6shall be reduced by the offset for any compensation, award, or
7other payment to the employee under the Workers' Compensation
8Act or the Workers' Occupational Diseases Act relating to such
9disability afforded to the Fund pursuant to this Article,
10except that the reduction in the recovery for such offset
11shall be limited to that portion of the compensation, award,
12or other payment that is or reasonably can be allocated or
13attributed to past or future salary.
 
14    Section 99. Effective date. This Act takes effect upon
15becoming law.