SB2907 102ND GENERAL ASSEMBLY

LRB102 18620 SMS 26969 b

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.

FISCAL NOTE ACT MAY APPLY

PENSION IMPACT NOTE ACT MAY APPLY

STATE MANDATES ACT MAY REQUIRE REIMBURSEMENT

A BILL FOR

AN ACT concerning public employee benefits.

Be it enacted by the People of the State of Illinois, represented in the General Assembly:

Section 5. If and only if Senate Bill 1056 of the 102nd General Assembly, as amended by House Amendment 1, becomes law, then the Illinois Pension Code is amended by changing Section 17-151.1 as follows:

(40 ILCS 5/17-151.1)

Sec. 17-151.1. Recovery of amount paid in error.

(a) The Board may retain out of any annuity or benefit payable to any person any amount that the Board determines is owing to the Fund because (i) required employee contributions were not made in whole or in part, (ii) employee or member obligations to return refunds were not met, or (iii) money was paid to any employee, member, or annuitant through misrepresentation, fraud, or error.

If the Fund mistakenly sets any benefit at an incorrect amount, the Fund shall recalculate the benefit as soon as may be practicable after the mistake is discovered. The Fund shall provide the recipient, or the survivor or beneficiary of the recipient, as the case may be, with at least 60 days' notice of the corrected amount.

If the benefit was mistakenly set too low, the Fund shall make a lump sum payment to the recipient, or the survivor or beneficiary of the recipient, as the case may be, of an amount equal to the difference between the benefits that should have been paid and those actually paid, plus interest at the rate of 3% from the date the unpaid amounts accrued to the date of payment.

If the benefit was mistakenly set too high, the Fund may recover the amount overpaid from the recipient, or the survivor or beneficiary of the recipient, as the case may be, plus interest at 3% from the date of overpayment to the date of recovery. The recipient, or the survivor or beneficiary of the recipient, as the case may be, may elect to repay the sum owed either directly by a lump sum payment, in agreed-upon monthly payments over a period not to exceed 5 years, or through an actuarial equivalent reduction of the corrected benefit. If the annuitant does not elect to repay the sum owed directly by a lump sum payment, in agreed-upon monthly payments, or through an actuarial equivalent 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. 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. However, 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.

(b) The Board and the Fund shall be held free from any liability for any money retained or paid in accordance with this Section, and the employee, member, or pensioner shall be assumed to have assented and agreed to the disposition of money due.

(c) The changes made by this amendatory Act of the 94th General Assembly are not limited to persons in service on or after the effective date of this amendatory Act.

(Source: P.A. 94-425, eff. 8-2-05; 10200SB1056ham001.)

Section 99. Effective date. This Act takes effect upon becoming law or on the date that Article 20 of Senate Bill 1056 of the 102nd General Assembly takes effect, whichever is later.