97TH GENERAL ASSEMBLY
State of Illinois
2011 and 2012
SB1674

 

Introduced 2/9/2011, by Sen. Kwame Raoul

 

SYNOPSIS AS INTRODUCED:
 
40 ILCS 5/12-190.2  from Ch. 108 1/2, par. 12-190.2

    Amends the Chicago Park District Article of the Illinois Pension Code. Provides that, in those cases where the injury or death for which a disability or death benefit is payable was caused under circumstances creating a legal liability on the part of some person or entity to pay damages to the disabled employee, then legal proceedings may be taken against that other person or entity to recover damages, notwithstanding the fund's payment of or liability to pay disability or death benefits. Provides that the fund may intervene in any action brought by the disabled employee or his or her personal representative. Authorizes the fund to bring an action against the third party for the recovery of all damages on account of injuries caused to the employee if the employee has not brought such an action within a specified period of time.


LRB097 07607 JDS 47718 b

FISCAL NOTE ACT MAY APPLY
PENSION IMPACT NOTE ACT MAY APPLY

 

 

A BILL FOR

 

SB1674LRB097 07607 JDS 47718 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 changing
5Section 12-190.2 as follows:
 
6    (40 ILCS 5/12-190.2)  (from Ch. 108 1/2, par. 12-190.2)
7    Sec. 12-190.2. Overpayment; deduction; action by fund
8against third party; subrogation.
9    (a) The amount of any overpayment, of any pension or
10benefit granted under this Article, due to fraud,
11misrepresentation or error, may be deducted from future
12payments or refunds made to the recipient of the overpayment.
13The board also may withhold payment of any benefits or pensions
14payable under this Article where any type of lawsuit or
15Workers' Compensation suit has been instituted until the
16specific liability of the board and the fund for payments due
17is established by the adjudication or dismissal of the suit.
18Any such action of the board shall relieve and release the
19board and the fund from any liability for any moneys deducted
20or withheld.
21    (b) If the injury or death for which a disability or death
22benefit is payable under this Article was caused under
23circumstances creating a legal liability on the part of some

 

 

SB1674- 2 -LRB097 07607 JDS 47718 b

1person or entity (hereinafter "third party") to pay damages to
2the disabled employee, legal proceedings may be taken against
3the third party to recover damages, notwithstanding the fund's
4payment of, or liability to pay, disability or death benefits
5under this Article. In that case, however, if the action
6against the third party is brought by the disabled employee or
7his or her personal representative and judgment is obtained and
8paid, or settlement is made with the third party, either with
9or without suit, from the amount received by the employee or
10personal representative, then there shall be paid to the fund
11the amount of money representing the death or disability
12benefits paid or to be paid to the disabled employee pursuant
13to the provisions of this Article. If the action against a
14third party is brought by the disabled employee or his personal
15representative, the fund shall have a claim or lien upon any
16recovery, by judgment or settlement, out of which the disabled
17employee or his or her personal representative might be
18compensated by the third party. The fund may satisfy or enforce
19such a claim or lien only from that portion of a recovery, by
20settlement or judgment, that has been, or can be, allocated or
21attributed to past and future lost salary. The fund's claim or
22lien shall not be satisfied or enforced from that portion of a
23recovery that has been, or can be, allocated or attributed to
24medical care and treatment, pain and suffering, loss of
25consortium, or attorney's fees and costs.
26    If an action is brought by the disabled employee or his or

 

 

SB1674- 3 -LRB097 07607 JDS 47718 b

1her personal representative, that person shall forthwith
2notify the fund, by personal service or registered mail, of
3that fact and of the name of the court where the suit is
4brought, and that person shall also file proof of the notice in
5that action. The fund may, at any time thereafter, intervene in
6that action upon its own motion. Therefore, no release or
7settlement of claim for damages by reason of injury to the
8disabled employee, and no satisfaction of judgment in such a
9proceeding, shall be valid without the written consent of the
10board authorized by this Code to administer the fund created
11under this Article, except that the consent of the board shall
12be provided expeditiously following a settlement or judgment.
13    If the disabled employee or his or her personal
14representative has not instituted an action against a third
15party and not more than 3 months remain before such an action
16would thereafter be barred by law, the fund may, in its own
17name or in the name of the personal representative, commence a
18proceeding against the third party for the recovery of all
19damages on account of injuries caused to the employee. From any
20amount so recovered, the fund shall pay to the personal
21representative of the disabled employee all sums collected from
22the third party by judgment or otherwise in excess of (i) the
23amount of disability or death benefits paid or to be paid under
24this Article to the disabled employee or his personal
25representative and (ii) the costs, attorney's fees, and
26reasonable expenses incurred by the fund in making the

 

 

SB1674- 4 -LRB097 07607 JDS 47718 b

1collection or in enforcing the liability. The fund's recovery
2shall be satisfied only from that portion of a recovery, by
3judgment or settlement, that has been, or can be, allocated or
4attributed to past and future lost salary. The fund's recovery
5shall not be satisfied from that portion of the recovery that
6has been or can be allocated or attributed to medical care and
7treatment, pain and suffering, loss of consortium, or
8attorney's fees and costs.
9    Additionally, with respect to any right of subrogation
10asserted by the fund under this Section, the fund may, in its
11discretion, determine what amount from past or future salary
12shall be appropriate under the circumstances to collect from
13the recovery obtained on behalf of the disabled employee.
14(Source: P.A. 86-1488.)