Rep. Lawrence M. Walsh, Jr.

Filed: 5/1/2014

 

 


 

 


 
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1
AMENDMENT TO SENATE BILL 3309

2    AMENDMENT NO. ______. Amend Senate Bill 3309 on page 1, in
3line 5, after "2-114,", by inserting "3-144.2, 3-148, 4-139,";
4and
 
5on page 1, in line 6, after "2-163,", by inserting "4-138.10,";
6and
 
7on page 2, below line 23, by inserting the following:
 
8    "(40 ILCS 5/3-144.2)  (from Ch. 108 1/2, par. 3-144.2)
9    Sec. 3-144.2. Mistake in benefit.
10    (a) If the Fund mistakenly sets any benefit at an incorrect
11amount, it shall recalculate the benefit as soon as may be
12practicable after the mistake is discovered.
13    (b) If the benefit was mistakenly set too low, the Fund
14shall make a lump sum payment to the recipient of an amount
15equal to the difference between the benefits that should have

 

 

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1been paid and those actually paid, plus interest at the
2prescribed rate from the date the unpaid amounts accrued to the
3date of payment.
4    (c) If the benefit was mistakenly set too high, the Fund
5may recover the amount overpaid from the recipient thereof,
6including interest at the prescribed rate from the date of
7overpayment to the date of recovery, either directly or by
8deducting such amount from the remaining benefits payable to
9the recipient. If the overpayment is recovered by deductions
10from the remaining benefits payable to the recipient, the
11monthly deduction shall not exceed 10% of the corrected monthly
12benefit amount, unless otherwise agreed to by the recipient of
13the benefit.
14    However, if (i) the amount of the benefit was mistakenly
15set too high, and (ii) the error was undiscovered for 3 years
16or longer, and (iii) the error was not the result of incorrect
17information supplied by the affected participant or
18beneficiary, then upon discovery of the mistake the benefit
19shall be adjusted to the correct level, but the recipient of
20the benefit need not repay to the Fund the excess amounts
21received in error.
22    (d) In the event of any conflict between this Section and
23the Administrative Review Law, including but not limited to any
24period established under that Law having the effect of limiting
25the time in which a mistake in benefit may be corrected, this
26Section is intended to control.

 

 

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1    The amount of any overpayment, due to fraud,
2misrepresentation or error, of any pension or benefit granted
3under this Article may be deducted from future payments to the
4recipient of such pension or benefit.
5(Source: P.A. 82-623.)
 
6    (40 ILCS 5/3-148)  (from Ch. 108 1/2, par. 3-148)
7    Sec. 3-148. Administrative review. Except as provided in
8Section 3-144.2, pertaining to the correction of mistakes in
9benefits, the The provisions of the Administrative Review Law,
10and all amendments and modifications thereof and the rules
11adopted pursuant thereto, shall apply to and govern all
12proceedings for the judicial review of final administrative
13decisions of the retirement board provided for under this
14Article. The term "administrative decision" is as defined in
15Section 3-101 of the Code of Civil Procedure.
16(Source: P.A. 82-783.)
 
17    (40 ILCS 5/4-138.10 new)
18    Sec. 4-138.10. Mistake in benefit.
19    (a) If the Fund mistakenly sets any benefit at an incorrect
20amount, it shall recalculate the benefit as soon as may be
21practicable after the mistake is discovered.
22    (b) If the benefit was mistakenly set too low, the Fund
23shall make a lump sum payment to the recipient of an amount
24equal to the difference between the benefits that should have

 

 

09800SB3309ham001- 4 -LRB098 17036 EFG 58912 a

1been paid and those actually paid, plus interest at the
2prescribed rate from the date the unpaid amounts accrued to the
3date of payment.
4    (c) If the benefit was mistakenly set too high, the Fund
5may recover the amount overpaid from the recipient thereof,
6including interest at the prescribed rate from the date of
7overpayment to the date of recovery, either directly or by
8deducting such amount from the remaining benefits payable to
9the recipient. If the overpayment is recovered by deductions
10from the remaining benefits payable to the recipient, the
11monthly deduction shall not exceed 10% of the corrected monthly
12benefit amount, unless otherwise agreed to by the recipient of
13the benefit.
14    However, if (i) the amount of the benefit was mistakenly
15set too high, and (ii) the error was undiscovered for 3 years
16or longer, and (iii) the error was not the result of incorrect
17information supplied by the affected participant or
18beneficiary, then upon discovery of the mistake the benefit
19shall be adjusted to the correct level, but the recipient of
20the benefit need not repay to the Fund the excess amounts
21received in error.
22    (d) In the event of any conflict between this Section and
23the Administrative Review Law, including but not limited to any
24period established under that Law having the effect of limiting
25the time in which a mistake in benefit may be corrected, this
26Section is intended to control.
 

 

 

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1    (40 ILCS 5/4-139)  (from Ch. 108 1/2, par. 4-139)
2    Sec. 4-139. Administrative review. Except as provided in
3Section 4-138.10, pertaining to the correction of mistakes in
4benefits, the The provisions of the Administrative Review Law,
5and all amendments and modifications thereof and the rules
6adopted pursuant thereto, shall apply to and govern all
7proceedings for the judicial review of final administrative
8decisions of the retirement board provided for under this
9Article. The term "administrative decision" is as defined in
10Section 3-101 of the Code of Civil Procedure.
11(Source: P.A. 82-783.)".