Full Text of SB3309 98th General Assembly
SB3309 98TH GENERAL ASSEMBLY |
| | 98TH GENERAL ASSEMBLY
State of Illinois
2013 and 2014 SB3309 Introduced 2/14/2014, by Sen. Jennifer Bertino-Tarrant SYNOPSIS AS INTRODUCED: |
| 40 ILCS 5/2-155.1 new | | 40 ILCS 5/4-138.10 new | | 40 ILCS 5/10-110 new | | 40 ILCS 5/14-148.1 new | | 40 ILCS 5/18-162.1 new | |
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Amends the General Assembly, State Employees, and Judges Articles of the Illinois Pension Code. Provides that if a fund or system mistakenly sets any
benefit at an incorrect amount, it shall recalculate the benefit as soon as
may be practicable after the mistake is discovered. Sets forth specific requirements regarding when a benefit is mistakenly set too low and when a benefit is mistakenly set too high. Amends the Downstate Firefighters and Cook County Forest Preserve Articles of the Illinois Pension Code. Provides that the amount of any overpayment of any pension or benefit due to fraud, misrepresentation, or error may be deducted from future payments to the recipient.
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| | FISCAL NOTE ACT MAY APPLY | | PENSION IMPACT NOTE ACT MAY APPLY |
| | A BILL FOR |
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| 1 | | AN ACT concerning public employee benefits.
| 2 | | Be it enacted by the People of the State of Illinois,
| 3 | | represented in the General Assembly:
| 4 | | Section 5. The Illinois Pension Code is amended by adding | 5 | | Sections 2-155.1, 4-138.10, 10-110, 14-148.1, and 18-162.1 as | 6 | | follows: | 7 | | (40 ILCS 5/2-155.1 new) | 8 | | Sec. 2-155.1. Mistake in benefit. If the System mistakenly | 9 | | sets any
benefit at an incorrect amount, it shall recalculate | 10 | | the benefit as soon as
may be practicable after the mistake is | 11 | | discovered. | 12 | | If the benefit was mistakenly set too low, the System shall | 13 | | make a lump
sum payment to the recipient of an amount equal to | 14 | | the difference between
the benefits that should have been paid | 15 | | and those actually paid, plus
interest at the prescribed rate | 16 | | of interest from the date the unpaid amounts accrued to
the | 17 | | date of payment. | 18 | | If the benefit was mistakenly set too high, the System may | 19 | | recover the
amount overpaid from the recipient thereof, plus | 20 | | interest at the prescribed rate of interest from the date of | 21 | | overpayment to the date of recovery, either directly
or by | 22 | | deducting
such amount from the remaining benefits payable to | 23 | | the recipient. However,
if (1) the amount of the benefit was |
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| 1 | | mistakenly set too high, and (2) the
error was undiscovered for | 2 | | 3 years or longer, and (3) the error was not the
result of | 3 | | incorrect information supplied by the affected participant or
| 4 | | beneficiary, then upon discovery of the mistake the benefit | 5 | | shall be
adjusted to the correct level, but the recipient of | 6 | | the benefit need not
repay to the System the excess amounts | 7 | | received in error. | 8 | | (40 ILCS 5/4-138.10 new) | 9 | | Sec. 4-138.10. Overpayment; deduction. The amount of any | 10 | | overpayment, due to fraud, misrepresentation or error, of any | 11 | | pension or benefit granted under this Article may be deducted | 12 | | from future payments to the recipient of such pension or | 13 | | benefit. | 14 | | (40 ILCS 5/10-110 new) | 15 | | Sec. 10-110. Overpayment; deduction. The amount of any | 16 | | overpayment, of any pension or benefit granted under this | 17 | | Article, due to fraud, misrepresentation or error, may be | 18 | | deducted from future payments or refunds made to the recipient | 19 | | of the overpayment. Any such action of the board shall relieve | 20 | | and release the board and the fund from any liability for any | 21 | | moneys deducted or withheld. | 22 | | (40 ILCS 5/14-148.1 new) | 23 | | Sec. 14-148.1. Mistake in benefit. If the System mistakenly |
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| 1 | | sets any
benefit at an incorrect amount, it shall recalculate | 2 | | the benefit as soon as
may be practicable after the mistake is | 3 | | discovered. | 4 | | If the benefit was mistakenly set too low, the System shall | 5 | | make a lump
sum payment to the recipient of an amount equal to | 6 | | the difference between
the benefits that should have been paid | 7 | | and those actually paid, plus
regular interest from the date | 8 | | the unpaid amounts accrued to
the date of payment. | 9 | | If the benefit was mistakenly set too high, the System may | 10 | | recover the
amount overpaid from the recipient thereof, plus | 11 | | regular interest from the date of overpayment to the date of | 12 | | recovery, either directly
or by deducting
such amount from the | 13 | | remaining benefits payable to the recipient. However,
if (1) | 14 | | the amount of the benefit was mistakenly set too high, and (2) | 15 | | the
error was undiscovered for 3 years or longer, and (3) the | 16 | | error was not the
result of incorrect information supplied by | 17 | | the affected member or
beneficiary, then upon discovery of the | 18 | | mistake the benefit shall be
adjusted to the correct level, but | 19 | | the recipient of the benefit need not
repay to the System the | 20 | | excess amounts received in error. | 21 | | (40 ILCS 5/18-162.1 new) | 22 | | Sec. 18-162.1. Mistake in benefit. If the System mistakenly | 23 | | sets any
benefit at an incorrect amount, it shall recalculate | 24 | | the benefit as soon as
may be practicable after the mistake is | 25 | | discovered. |
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| 1 | | If the benefit was mistakenly set too low, the System shall | 2 | | make a lump
sum payment to the recipient of an amount equal to | 3 | | the difference between
the benefits that should have been paid | 4 | | and those actually paid, plus
interest at the prescribed rate | 5 | | of interest from the date the unpaid amounts accrued to
the | 6 | | date of payment. | 7 | | If the benefit was mistakenly set too high, the System may | 8 | | recover the
amount overpaid from the recipient thereof, plus | 9 | | interest at the prescribed rate of interest from the date of | 10 | | overpayment to the date of recovery, either directly
or by | 11 | | deducting
such amount from the remaining benefits payable to | 12 | | the recipient. However,
if (1) the amount of the benefit was | 13 | | mistakenly set too high, and (2) the
error was undiscovered for | 14 | | 3 years or longer, and (3) the error was not the
result of | 15 | | incorrect information supplied by the affected participant or
| 16 | | beneficiary, then upon discovery of the mistake the benefit | 17 | | shall be
adjusted to the correct level, but the recipient of | 18 | | the benefit need not
repay to the System the excess amounts | 19 | | received in error.
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