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Rep. Lawrence M. Walsh, Jr.
Filed: 5/13/2014
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1 | | AMENDMENT TO SENATE BILL 3309
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2 | | AMENDMENT NO. ______. Amend Senate Bill 3309 by replacing |
3 | | everything after the enacting clause with the following:
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4 | | "Section 5. The Illinois Pension Code is amended by |
5 | | changing Sections 2-114, 3-144.2, 3-148, 4-139, 14-103.19, |
6 | | 18-116, and 21-105.1 and by adding Sections 2-155.1, 2-163, |
7 | | 4-138.10, 14-148.1, 14-153.3, 18-162.1, and 18-170 as follows:
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8 | | (40 ILCS 5/2-114) (from Ch. 108 1/2, par. 2-114)
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9 | | Sec. 2-114. Actuarial tables.
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10 | | "Actuarial tables": Tabular listings of assumed rates of |
11 | | death,
disability, retirement and withdrawal from service and |
12 | | mathematical
functions derived from such rates combined with an |
13 | | assumed rate of interest
based upon the experience of the |
14 | | system as adopted by the board upon
recommendation of the |
15 | | actuary.
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16 | | The adopted actuarial tables shall be used to determine the |
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1 | | amount of all benefits under this Article, including any |
2 | | optional forms of benefits. Optional forms of benefits must be |
3 | | the actuarial equivalent of the normal benefit payable under |
4 | | this Article. |
5 | | (Source: Laws 1963, p. 161.)
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6 | | (40 ILCS 5/2-155.1 new) |
7 | | Sec. 2-155.1. Mistake in benefit. If the System mistakenly |
8 | | sets any benefit at an incorrect amount, it shall recalculate |
9 | | the benefit as soon as may be practicable after the mistake is |
10 | | discovered. |
11 | | If the benefit was mistakenly set too low, the System shall |
12 | | make a lump sum payment to the recipient of an amount equal to |
13 | | the difference between the benefits that should have been paid |
14 | | and those actually paid. |
15 | | If the benefit was mistakenly set too high, the System may |
16 | | recover the amount overpaid from the recipient thereof, either |
17 | | directly or by deducting such amount from the remaining |
18 | | benefits payable to the recipient. However, if (1) the amount |
19 | | of the benefit was mistakenly set too high, and (2) the error |
20 | | was undiscovered for 3 years or longer, and (3) the error was |
21 | | not the result of incorrect information supplied by the |
22 | | affected member or beneficiary, then upon discovery of the |
23 | | mistake the benefit shall be adjusted to the correct level, but |
24 | | the recipient of the benefit need not repay to the System the |
25 | | excess amounts received in error. |
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1 | | This Section applies to all mistakes in benefit |
2 | | calculations that occur before, on, or after the effective date |
3 | | of this amendatory Act of the 98th General Assembly. |
4 | | (40 ILCS 5/2-163 new) |
5 | | Sec. 2-163. Termination of plan. Upon plan termination, a |
6 | | participant's interest in the pension fund will be |
7 | | nonforfeitable.
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8 | | (40 ILCS 5/3-144.2) (from Ch. 108 1/2, par. 3-144.2)
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9 | | Sec. 3-144.2. Mistake in benefit. |
10 | | (a) If the Fund commits a mistake by setting any benefit at |
11 | | an incorrect amount, it shall adjust the benefit to the correct |
12 | | level as soon as may be practicable after the mistake is |
13 | | discovered. The term "mistake" includes a clerical or |
14 | | administrative error executed by the Fund or participant as it |
15 | | relates to a benefit under this Article; however, in no case |
16 | | shall "mistake" include any benefit as it relates to the |
17 | | reasonable calculation of the benefit or aspects of the benefit |
18 | | based on salary, service credit, calculation or determination |
19 | | of a disability, date of retirement, or other factors |
20 | | significant to the calculation of the benefit that were |
21 | | reasonably understood or agreed to by the Fund at the time of |
22 | | retirement. |
23 | | (b) If the benefit was mistakenly set too low, the Fund |
24 | | shall make a lump sum payment to the recipient of an amount |
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1 | | equal to the difference between the benefits that should have |
2 | | been paid and those actually paid, plus interest at the rate |
3 | | prescribed by the Public Pension Division of the Department of |
4 | | Insurance from the date the unpaid amounts accrued to the date |
5 | | of payment. |
6 | | (c) If the benefit was mistakenly set too high, the Fund |
7 | | may recover the amount overpaid from the recipient thereof, |
8 | | either directly or by deducting such amount from the remaining |
9 | | benefits payable to the recipient as is indicated by the |
10 | | recipient. If the overpayment is recovered by deductions from |
11 | | the remaining benefits payable to the recipient, the monthly |
12 | | deduction shall not exceed 10% of the corrected monthly benefit |
13 | | unless otherwise indicated by the recipient. |
14 | | However, if (i) the amount of the benefit was mistakenly |
15 | | set too high, and (ii) the error was undiscovered for 3 years |
16 | | or longer, and (iii) the error was not the result of fraud |
17 | | committed by the affected participant or beneficiary, then upon |
18 | | discovery of the mistake the benefit shall be adjusted to the |
19 | | correct level, but the recipient of the benefit need not repay |
20 | | to the Fund the excess amounts received in error. |
21 | | The amount of any overpayment, due to fraud, |
22 | | misrepresentation
or error, of any pension or benefit granted |
23 | | under this Article may be deducted
from future payments to the |
24 | | recipient of such pension or benefit.
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25 | | (Source: P.A. 82-623.)
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1 | | (40 ILCS 5/3-148) (from Ch. 108 1/2, par. 3-148)
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2 | | Sec. 3-148. Administrative review. Except as it relates to |
3 | | any time limitation to correct a mistake as provided in Section |
4 | | 3-144.2, the The provisions of the Administrative Review Law,
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5 | | and all amendments and modifications thereof and the rules |
6 | | adopted
pursuant thereto, shall apply to and govern all |
7 | | proceedings for the
judicial review of final administrative |
8 | | decisions of the retirement board
provided for under this |
9 | | Article. The term "administrative decision" is as
defined in |
10 | | Section 3-101 of the Code of Civil Procedure.
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11 | | (Source: P.A. 82-783.)
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12 | | (40 ILCS 5/4-138.10 new) |
13 | | Sec. 4-138.10. Mistake in benefit. |
14 | | (a) If the Fund commits a mistake by setting any benefit at |
15 | | an incorrect amount, it shall adjust the benefit to the correct |
16 | | level as soon as may be practicable after the mistake is |
17 | | discovered. The term "mistake" includes a clerical or |
18 | | administrative error executed by the Fund or participant as it |
19 | | relates to a benefit under this Article; however, in no case |
20 | | shall "mistake" include any benefit as it relates to the |
21 | | reasonable calculation of the benefit or aspects of the benefit |
22 | | based on salary, service credit, calculation or determination |
23 | | of a disability, date of retirement, or other factors |
24 | | significant to the calculation of the benefit that were |
25 | | reasonably understood or agreed to by the Fund at the time of |
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1 | | retirement. |
2 | | (b) If the benefit was mistakenly set too low, the Fund |
3 | | shall make a lump sum payment to the recipient of an amount |
4 | | equal to the difference between the benefits that should have |
5 | | been paid and those actually paid, plus interest at the rate |
6 | | prescribed by the Public Pension Division of the Department of |
7 | | Insurance from the date the unpaid amounts accrued to the date |
8 | | of payment. |
9 | | (c) If the benefit was mistakenly set too high, the Fund |
10 | | may recover the amount overpaid from the recipient thereof, |
11 | | either directly or by deducting such amount from the remaining |
12 | | benefits payable to the recipient as is indicated by the |
13 | | recipient. If the overpayment is recovered by deductions from |
14 | | the remaining benefits payable to the recipient, the monthly |
15 | | deduction shall not exceed 10% of the corrected monthly benefit |
16 | | unless otherwise indicated by the recipient. |
17 | | However, if (i) the amount of the benefit was mistakenly |
18 | | set too high, and (ii) the error was undiscovered for 3 years |
19 | | or longer, and (iii) the error was not the result of fraud |
20 | | committed by the affected participant or beneficiary, then upon |
21 | | discovery of the mistake the benefit shall be adjusted to the |
22 | | correct level, but the recipient of the benefit need not repay |
23 | | to the Fund the excess amounts received in error.
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24 | | (40 ILCS 5/4-139) (from Ch. 108 1/2, par. 4-139)
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25 | | Sec. 4-139. Administrative review. Except as it relates to |
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1 | | any time limitation to correct a mistake as provided in Section |
2 | | 4-138.10 , the The provisions of the Administrative Review Law,
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3 | | and all amendments and modifications thereof and the rules |
4 | | adopted
pursuant thereto, shall apply to and govern all |
5 | | proceedings for the
judicial review of final administrative |
6 | | decisions of the retirement board
provided for under this |
7 | | Article. The term "administrative decision" is as
defined in |
8 | | Section 3-101 of the Code of Civil Procedure.
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9 | | (Source: P.A. 82-783.)
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10 | | (40 ILCS 5/14-103.19) (from Ch. 108 1/2, par. 14-103.19)
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11 | | Sec. 14-103.19. Actuarial tables. "Actuarial tables": |
12 | | Tables of mathematical functions derived from
mortality, |
13 | | disability and turn-over rates, combined with interest
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14 | | discount factors as adopted by the board on recommendation of |
15 | | the
actuary.
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16 | | The adopted actuarial tables shall be used to determine the |
17 | | amount of all benefits under this Article, including any |
18 | | optional forms of benefits. Optional forms of benefits must be |
19 | | the actuarial equivalent of the normal benefit payable under |
20 | | this Article. |
21 | | (Source: P.A. 80-841.)
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22 | | (40 ILCS 5/14-148.1 new) |
23 | | Sec. 14-148.1. Mistake in benefit. If the System mistakenly |
24 | | sets any benefit at an incorrect amount, it shall recalculate |
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1 | | the benefit as soon as may be practicable after the mistake is |
2 | | discovered. |
3 | | If the benefit was mistakenly set too low, the System shall |
4 | | make a lump sum payment to the recipient of an amount equal to |
5 | | the difference between the benefits that should have been paid |
6 | | and those actually paid. |
7 | | If the benefit was mistakenly set too high, the System may |
8 | | recover the amount overpaid from the recipient thereof, either |
9 | | directly or by deducting such amount from the remaining |
10 | | benefits payable to the recipient. However, if (1) the amount |
11 | | of the benefit was mistakenly set too high, and (2) the error |
12 | | was undiscovered for 3 years or longer, and (3) the error was |
13 | | not the result of incorrect information supplied by the |
14 | | affected member or beneficiary, then upon discovery of the |
15 | | mistake the benefit shall be adjusted to the correct level, but |
16 | | the recipient of the benefit need not repay to the System the |
17 | | excess amounts received in error. |
18 | | This Section applies to all mistakes in benefit |
19 | | calculations that occur before, on, or after the effective date |
20 | | of this amendatory Act of the 98th General Assembly. |
21 | | (40 ILCS 5/14-153.3 new) |
22 | | Sec. 14-153.3. Termination of plan. Upon plan termination, |
23 | | a member's interest in the pension fund will be nonforfeitable.
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24 | | (40 ILCS 5/18-116) (from Ch. 108 1/2, par. 18-116)
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1 | | Sec. 18-116. Actuarial tables.
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2 | | "Actuarial tables": Such tabular listings of assumed rates |
3 | | of death,
disability, retirement and withdrawal from service |
4 | | and mathematical
functions derived from such rates combined |
5 | | with an assumed rate of
interest, based upon the experience of |
6 | | the system, as adopted by the board
upon recommendation by the |
7 | | actuary.
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8 | | The adopted actuarial tables shall be used to determine the |
9 | | amount of all benefits under this Article, including any |
10 | | optional forms of benefits. Optional forms of benefits must be |
11 | | the actuarial equivalent of the normal benefit payable under |
12 | | this Article. |
13 | | (Source: Laws 1963, p. 161.)
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14 | | (40 ILCS 5/18-162.1 new) |
15 | | Sec. 18-162.1. Mistake in benefit. If the System mistakenly |
16 | | sets any benefit at an incorrect amount, it shall recalculate |
17 | | the benefit as soon as may be practicable after the mistake is |
18 | | discovered. |
19 | | If the benefit was mistakenly set too low, the System shall |
20 | | make a lump sum payment to the recipient of an amount equal to |
21 | | the difference between the benefits that should have been paid |
22 | | and those actually paid. |
23 | | If the benefit was mistakenly set too high, the System may |
24 | | recover the amount overpaid from the recipient thereof, either |
25 | | directly or by deducting such amount from the remaining |
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1 | | benefits payable to the recipient. However, if (1) the amount |
2 | | of the benefit was mistakenly set too high, and (2) the error |
3 | | was undiscovered for 3 years or longer, and (3) the error was |
4 | | not the result of incorrect information supplied by the |
5 | | affected member or beneficiary, then upon discovery of the |
6 | | mistake the benefit shall be adjusted to the correct level, but |
7 | | the recipient of the benefit need not repay to the System the |
8 | | excess amounts received in error. |
9 | | This Section applies to all mistakes in benefit |
10 | | calculations that occur before, on, or after the effective date |
11 | | of this amendatory Act of the 98th General Assembly. |
12 | | (40 ILCS 5/18-170 new) |
13 | | Sec. 18-170. Termination of plan. Upon plan termination, a |
14 | | participant's interest in the pension fund will be |
15 | | nonforfeitable.
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16 | | (40 ILCS 5/21-105.1) (from Ch. 108 1/2, par. 21-105.1)
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17 | | Sec. 21-105.1. Election of optional medicare coverage. The |
18 | | State or
any political subdivision or noncorporate public |
19 | | entity may elect to
provide optional medicare coverage for its |
20 | | personnel in the same manner and
subject to the same conditions |
21 | | as are set forth in Sections 21-103, 21-104
and 21-105 for the |
22 | | election of Social Security coverage , including a retirement |
23 | | system established under Article 3, 4, 5, or 6 of this Code, |
24 | | notwithstanding the provisions contained in Section 21-105 of |