Full Text of HB5811 99th General Assembly
HB5811 99TH GENERAL ASSEMBLY |
| | 99TH GENERAL ASSEMBLY
State of Illinois
2015 and 2016 HB5811 Introduced , by Rep. Barbara Wheeler SYNOPSIS AS INTRODUCED: |
| 40 ILCS 5/3-144.2 | from Ch. 108 1/2, par. 3-144.2 | 40 ILCS 5/4-138.10 | |
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Amends the Downstate Police and Downstate Firefighter Articles of the Illinois Pension Code. In provisions concerning mistakes in benefit amounts, removes provisions that define "mistake". Effective immediately.
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| | FISCAL NOTE ACT MAY APPLY | | PENSION IMPACT NOTE ACT MAY APPLY |
| | A BILL FOR |
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| | | HB5811 | | LRB099 16150 RPS 40476 b |
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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 3-144.2 and 4-138.10 as follows:
| 6 | | (40 ILCS 5/3-144.2) (from Ch. 108 1/2, par. 3-144.2)
| 7 | | Sec. 3-144.2. Mistake in benefit. | 8 | | (a) If the Fund commits a mistake by setting any benefit at | 9 | | an incorrect amount, it shall adjust the benefit to the correct | 10 | | level as soon as may be practicable after the mistake is | 11 | | discovered. The term "mistake" includes a clerical or | 12 | | administrative error executed by the Fund or participant as it | 13 | | relates to a benefit under this Article; however, in no case | 14 | | shall "mistake" include any benefit as it relates to the | 15 | | reasonable calculation of the benefit or aspects of the benefit | 16 | | based on salary, service credit, calculation or determination | 17 | | of a disability, date of retirement, or other factors | 18 | | significant to the calculation of the benefit that were | 19 | | reasonably understood or agreed to by the Fund at the time of | 20 | | retirement. | 21 | | (b) If the benefit was mistakenly set too low, the Fund | 22 | | shall make a lump sum payment to the recipient of an amount | 23 | | equal to the difference between the benefits that should have |
| | | HB5811 | - 2 - | LRB099 16150 RPS 40476 b |
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| 1 | | been paid and those actually paid, plus interest at the rate | 2 | | prescribed by the Public Pension Division of the Department of | 3 | | Insurance from the date the unpaid amounts accrued to the date | 4 | | of payment. | 5 | | (c) If the benefit was mistakenly set too high, the Fund | 6 | | may recover the amount overpaid from the recipient thereof, | 7 | | either directly or by deducting such amount from the remaining | 8 | | benefits payable to the recipient as is indicated by the | 9 | | recipient. If the overpayment is recovered by deductions from | 10 | | the remaining benefits payable to the recipient, the monthly | 11 | | deduction shall not exceed 10% of the corrected monthly benefit | 12 | | unless otherwise indicated by the recipient. | 13 | | However, if (i) the amount of the benefit was mistakenly | 14 | | set too high, and (ii) the error was undiscovered for 3 years | 15 | | or longer, and (iii) the error was not the result of fraud | 16 | | committed by the affected participant or beneficiary, then upon | 17 | | discovery of the mistake the benefit shall be adjusted to the | 18 | | correct level, but the recipient of the benefit need not repay | 19 | | to the Fund the excess amounts received in error.
| 20 | | (Source: P.A. 98-1117, eff. 8-26-14.)
| 21 | | (40 ILCS 5/4-138.10) | 22 | | Sec. 4-138.10. Mistake in benefit. | 23 | | (a) If the Fund commits a mistake by setting any benefit at | 24 | | an incorrect amount, it shall adjust the benefit to the correct | 25 | | level as soon as may be practicable after the mistake is |
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| 1 | | discovered. The term "mistake" includes a clerical or | 2 | | administrative error executed by the Fund or participant as it | 3 | | relates to a benefit under this Article; however, in no case | 4 | | shall "mistake" include any benefit as it relates to the | 5 | | reasonable calculation of the benefit or aspects of the benefit | 6 | | based on salary, service credit, calculation or determination | 7 | | of a disability, date of retirement, or other factors | 8 | | significant to the calculation of the benefit that were | 9 | | reasonably understood or agreed to by the Fund at the time of | 10 | | retirement. | 11 | | (b) If the benefit was mistakenly set too low, the Fund | 12 | | shall make a lump sum payment to the recipient of an amount | 13 | | equal to the difference between the benefits that should have | 14 | | been paid and those actually paid, plus interest at the rate | 15 | | prescribed by the Public Pension Division of the Department of | 16 | | Insurance from the date the unpaid amounts accrued to the date | 17 | | of payment. | 18 | | (c) If the benefit was mistakenly set too high, the Fund | 19 | | may recover the amount overpaid from the recipient thereof, | 20 | | either directly or by deducting such amount from the remaining | 21 | | benefits payable to the recipient as is indicated by the | 22 | | recipient. If the overpayment is recovered by deductions from | 23 | | the remaining benefits payable to the recipient, the monthly | 24 | | deduction shall not exceed 10% of the corrected monthly benefit | 25 | | unless otherwise indicated by the recipient. | 26 | | However, if (i) the amount of the benefit was mistakenly |
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| 1 | | set too high, and (ii) the error was undiscovered for 3 years | 2 | | or longer, and (iii) the error was not the result of fraud | 3 | | committed by the affected participant or beneficiary, then upon | 4 | | discovery of the mistake the benefit shall be adjusted to the | 5 | | correct level, but the recipient of the benefit need not repay | 6 | | to the Fund the excess amounts received in error.
| 7 | | (Source: P.A. 98-1117, eff. 8-26-14.)
| 8 | | Section 99. Effective date. This Act takes effect upon | 9 | | becoming law.
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