Full Text of SB3309 98th General Assembly
SB3309enr 98TH GENERAL ASSEMBLY |
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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 changing | 5 | | Sections 2-114, 3-144.2, 3-148, 4-139, 14-103.19, 18-116, and | 6 | | 21-105.1 and by adding Sections 2-155.1, 2-163, 4-138.10, | 7 | | 14-148.1, 14-153.3, 18-162.1, and 18-170 as follows:
| 8 | | (40 ILCS 5/2-114) (from Ch. 108 1/2, par. 2-114)
| 9 | | Sec. 2-114. Actuarial tables.
| 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.
| 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: Laws 1963, p. 161.)
| 22 | | (40 ILCS 5/2-155.1 new) |
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| 1 | | Sec. 2-155.1. Mistake in benefit. If the System mistakenly | 2 | | sets any benefit at an incorrect amount, it shall recalculate | 3 | | the benefit as soon as may be practicable after the mistake is | 4 | | discovered. | 5 | | If the benefit was mistakenly set too low, the System shall | 6 | | make a lump sum payment to the recipient of an amount equal to | 7 | | the difference between the benefits that should have been paid | 8 | | and those actually paid. | 9 | | If the benefit was mistakenly set too high, the System may | 10 | | recover the amount overpaid from the recipient thereof, either | 11 | | directly or by deducting such amount from the remaining | 12 | | benefits payable to the recipient. However, if (1) the amount | 13 | | of the benefit was mistakenly set too high, and (2) the error | 14 | | was undiscovered for 3 years or longer, and (3) the error was | 15 | | not the result of incorrect information supplied by the | 16 | | affected member or beneficiary, then upon discovery of the | 17 | | mistake the benefit shall be adjusted to the correct level, but | 18 | | the recipient of the benefit need not repay to the System the | 19 | | excess amounts received in error. | 20 | | This Section applies to all mistakes in benefit | 21 | | calculations that occur before, on, or after the effective date | 22 | | of this amendatory Act of the 98th General Assembly. | 23 | | (40 ILCS 5/2-163 new) | 24 | | Sec. 2-163. Termination of plan. Upon plan termination, a | 25 | | participant's interest in the pension fund will be |
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| 1 | | nonforfeitable.
| 2 | | (40 ILCS 5/3-144.2) (from Ch. 108 1/2, par. 3-144.2)
| 3 | | Sec. 3-144.2. Mistake in benefit. | 4 | | (a) If the Fund commits a mistake by setting any benefit at | 5 | | an incorrect amount, it shall adjust the benefit to the correct | 6 | | level as soon as may be practicable after the mistake is | 7 | | discovered. The term "mistake" includes a clerical or | 8 | | administrative error executed by the Fund or participant as it | 9 | | relates to a benefit under this Article; however, in no case | 10 | | shall "mistake" include any benefit as it relates to the | 11 | | reasonable calculation of the benefit or aspects of the benefit | 12 | | based on salary, service credit, calculation or determination | 13 | | of a disability, date of retirement, or other factors | 14 | | significant to the calculation of the benefit that were | 15 | | reasonably understood or agreed to by the Fund at the time of | 16 | | retirement. | 17 | | (b) If the benefit was mistakenly set too low, the Fund | 18 | | shall make a lump sum payment to the recipient of an amount | 19 | | equal to the difference between the benefits that should have | 20 | | been paid and those actually paid, plus interest at the rate | 21 | | prescribed by the Public Pension Division of the Department of | 22 | | Insurance from the date the unpaid amounts accrued to the date | 23 | | of payment. | 24 | | (c) If the benefit was mistakenly set too high, the Fund | 25 | | may recover the amount overpaid from the recipient thereof, |
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| 1 | | either directly or by deducting such amount from the remaining | 2 | | benefits payable to the recipient as is indicated by the | 3 | | recipient. If the overpayment is recovered by deductions from | 4 | | the remaining benefits payable to the recipient, the monthly | 5 | | deduction shall not exceed 10% of the corrected monthly benefit | 6 | | unless otherwise indicated by the recipient. | 7 | | However, if (i) the amount of the benefit was mistakenly | 8 | | set too high, and (ii) the error was undiscovered for 3 years | 9 | | or longer, and (iii) the error was not the result of fraud | 10 | | committed by the affected participant or beneficiary, then upon | 11 | | discovery of the mistake the benefit shall be adjusted to the | 12 | | correct level, but the recipient of the benefit need not repay | 13 | | to the Fund the excess amounts received in error. | 14 | | The amount of any overpayment, due to fraud, | 15 | | misrepresentation
or error, of any pension or benefit granted | 16 | | under this Article may be deducted
from future payments to the | 17 | | recipient of such pension or benefit.
| 18 | | (Source: P.A. 82-623.)
| 19 | | (40 ILCS 5/3-148) (from Ch. 108 1/2, par. 3-148)
| 20 | | Sec. 3-148. Administrative review. Except as it relates to | 21 | | any time limitation to correct a mistake as provided in Section | 22 | | 3-144.2, the The provisions of the Administrative Review Law,
| 23 | | and all amendments and modifications thereof and the rules | 24 | | adopted
pursuant thereto, shall apply to and govern all | 25 | | proceedings for the
judicial review of final administrative |
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| 1 | | decisions of the retirement board
provided for under this | 2 | | Article. The term "administrative decision" is as
defined in | 3 | | Section 3-101 of the Code of Civil Procedure.
| 4 | | (Source: P.A. 82-783.)
| 5 | | (40 ILCS 5/4-138.10 new) | 6 | | Sec. 4-138.10. Mistake in benefit. | 7 | | (a) If the Fund commits a mistake by setting any benefit at | 8 | | an incorrect amount, it shall adjust the benefit to the correct | 9 | | level as soon as may be practicable after the mistake is | 10 | | discovered. The term "mistake" includes a clerical or | 11 | | administrative error executed by the Fund or participant as it | 12 | | relates to a benefit under this Article; however, in no case | 13 | | shall "mistake" include any benefit as it relates to the | 14 | | reasonable calculation of the benefit or aspects of the benefit | 15 | | based on salary, service credit, calculation or determination | 16 | | of a disability, date of retirement, or other factors | 17 | | significant to the calculation of the benefit that were | 18 | | reasonably understood or agreed to by the Fund at the time of | 19 | | retirement. | 20 | | (b) If the benefit was mistakenly set too low, the Fund | 21 | | shall make a lump sum payment to the recipient of an amount | 22 | | equal to the difference between the benefits that should have | 23 | | been paid and those actually paid, plus interest at the rate | 24 | | prescribed by the Public Pension Division of the Department of | 25 | | Insurance from the date the unpaid amounts accrued to the date |
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| 1 | | of payment. | 2 | | (c) If the benefit was mistakenly set too high, the Fund | 3 | | may recover the amount overpaid from the recipient thereof, | 4 | | either directly or by deducting such amount from the remaining | 5 | | benefits payable to the recipient as is indicated by the | 6 | | recipient. If the overpayment is recovered by deductions from | 7 | | the remaining benefits payable to the recipient, the monthly | 8 | | deduction shall not exceed 10% of the corrected monthly benefit | 9 | | unless otherwise indicated by the recipient. | 10 | | However, if (i) the amount of the benefit was mistakenly | 11 | | set too high, and (ii) the error was undiscovered for 3 years | 12 | | or longer, and (iii) the error was not the result of fraud | 13 | | committed by the affected participant or beneficiary, then upon | 14 | | discovery of the mistake the benefit shall be adjusted to the | 15 | | correct level, but the recipient of the benefit need not repay | 16 | | to the Fund the excess amounts received in error.
| 17 | | (40 ILCS 5/4-139) (from Ch. 108 1/2, par. 4-139)
| 18 | | Sec. 4-139. Administrative review. Except as it relates to | 19 | | any time limitation to correct a mistake as provided in Section | 20 | | 4-138.10, the The provisions of the Administrative Review Law,
| 21 | | and all amendments and modifications thereof and the rules | 22 | | adopted
pursuant thereto, shall apply to and govern all | 23 | | proceedings for the
judicial review of final administrative | 24 | | decisions of the retirement board
provided for under this | 25 | | Article. The term "administrative decision" is as
defined in |
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| 1 | | Section 3-101 of the Code of Civil Procedure.
| 2 | | (Source: P.A. 82-783.)
| 3 | | (40 ILCS 5/14-103.19) (from Ch. 108 1/2, par. 14-103.19)
| 4 | | Sec. 14-103.19. Actuarial tables. "Actuarial tables": | 5 | | Tables of mathematical functions derived from
mortality, | 6 | | disability and turn-over rates, combined with interest
| 7 | | discount factors as adopted by the board on recommendation of | 8 | | the
actuary.
| 9 | | The adopted actuarial tables shall be used to determine the | 10 | | amount of all benefits under this Article, including any | 11 | | optional forms of benefits. Optional forms of benefits must be | 12 | | the actuarial equivalent of the normal benefit payable under | 13 | | this Article. | 14 | | (Source: P.A. 80-841.)
| 15 | | (40 ILCS 5/14-148.1 new) | 16 | | Sec. 14-148.1. Mistake in benefit. If the System mistakenly | 17 | | sets any benefit at an incorrect amount, it shall recalculate | 18 | | the benefit as soon as may be practicable after the mistake is | 19 | | discovered. | 20 | | If the benefit was mistakenly set too low, the System shall | 21 | | make a lump sum payment to the recipient of an amount equal to | 22 | | the difference between the benefits that should have been paid | 23 | | and those actually paid. | 24 | | If the benefit was mistakenly set too high, the System may |
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| 1 | | recover the amount overpaid from the recipient thereof, either | 2 | | directly or by deducting such amount from the remaining | 3 | | benefits payable to the recipient. However, if (1) the amount | 4 | | of the benefit was mistakenly set too high, and (2) the error | 5 | | was undiscovered for 3 years or longer, and (3) the error was | 6 | | not the result of incorrect information supplied by the | 7 | | affected member or beneficiary, then upon discovery of the | 8 | | mistake the benefit shall be adjusted to the correct level, but | 9 | | the recipient of the benefit need not repay to the System the | 10 | | excess amounts received in error. | 11 | | This Section applies to all mistakes in benefit | 12 | | calculations that occur before, on, or after the effective date | 13 | | of this amendatory Act of the 98th General Assembly. | 14 | | (40 ILCS 5/14-153.3 new) | 15 | | Sec. 14-153.3. Termination of plan. Upon plan termination, | 16 | | a member's interest in the pension fund will be nonforfeitable.
| 17 | | (40 ILCS 5/18-116) (from Ch. 108 1/2, par. 18-116)
| 18 | | Sec. 18-116. Actuarial tables.
| 19 | | "Actuarial tables": Such tabular listings of assumed rates | 20 | | of death,
disability, retirement and withdrawal from service | 21 | | and mathematical
functions derived from such rates combined | 22 | | with an assumed rate of
interest, based upon the experience of | 23 | | the system, as adopted by the board
upon recommendation by the | 24 | | actuary.
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| 1 | | The adopted actuarial tables shall be used to determine the | 2 | | amount of all benefits under this Article, including any | 3 | | optional forms of benefits. Optional forms of benefits must be | 4 | | the actuarial equivalent of the normal benefit payable under | 5 | | this Article. | 6 | | (Source: Laws 1963, p. 161.)
| 7 | | (40 ILCS 5/18-162.1 new) | 8 | | Sec. 18-162.1. 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. | 16 | | If the benefit was mistakenly set too high, the System may | 17 | | recover the amount overpaid from the recipient thereof, either | 18 | | directly or by deducting such amount from the remaining | 19 | | benefits payable to the recipient. However, if (1) the amount | 20 | | of the benefit was mistakenly set too high, and (2) the error | 21 | | was undiscovered for 3 years or longer, and (3) the error was | 22 | | not the result of incorrect information supplied by the | 23 | | affected member or beneficiary, then upon discovery of the | 24 | | mistake the benefit shall be adjusted to the correct level, but | 25 | | the recipient of the benefit need not repay to the System the |
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| 1 | | excess amounts received in error. | 2 | | This Section applies to all mistakes in benefit | 3 | | calculations that occur before, on, or after the effective date | 4 | | of this amendatory Act of the 98th General Assembly. | 5 | | (40 ILCS 5/18-170 new) | 6 | | Sec. 18-170. Termination of plan. Upon plan termination, a | 7 | | participant's interest in the pension fund will be | 8 | | nonforfeitable.
| 9 | | (40 ILCS 5/21-105.1) (from Ch. 108 1/2, par. 21-105.1)
| 10 | | Sec. 21-105.1. Election of optional medicare coverage. The | 11 | | State or
any political subdivision or noncorporate public | 12 | | entity may elect to
provide optional medicare coverage for its | 13 | | personnel in the same manner and
subject to the same conditions | 14 | | as are set forth in Sections 21-103, 21-104
and 21-105 for the | 15 | | election of Social Security coverage , including a retirement | 16 | | system established under Article 3, 4, 5, or 6 of this Code, | 17 | | notwithstanding the provisions contained in Section 21-105 of | 18 | | this Article .
| 19 | | (Source: P.A. 84-1472.)
| 20 | | Section 99. Effective date. This Act takes effect upon | 21 | | becoming law.
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