| ||||
| Public Act 098-1117 | ||||
| ||||
| ||||
AN ACT concerning public employee benefits.
| ||||
Be it enacted by the People of the State of Illinois,
| ||||
represented in the General Assembly:
| ||||
Section 5. The Illinois Pension Code is amended by changing | ||||
Sections 2-114, 3-144.2, 3-148, 4-139, 14-103.19, 18-116, and | ||||
21-105.1 and by adding Sections 2-155.1, 2-163, 4-138.10, | ||||
14-148.1, 14-153.3, 18-162.1, and 18-170 as follows:
| ||||
(40 ILCS 5/2-114) (from Ch. 108 1/2, par. 2-114)
| ||||
Sec. 2-114. Actuarial tables.
| ||||
"Actuarial tables": Tabular listings of assumed rates of | ||||
death,
disability, retirement and withdrawal from service and | ||||
mathematical
functions derived from such rates combined with an | ||||
assumed rate of interest
based upon the experience of the | ||||
system as adopted by the board upon
recommendation of the | ||||
actuary.
| ||||
The adopted actuarial tables shall be used to determine the | ||||
amount of all benefits under this Article, including any | ||||
optional forms of benefits. Optional forms of benefits must be | ||||
the actuarial equivalent of the normal benefit payable under | ||||
this Article. | ||||
(Source: Laws 1963, p. 161.)
| ||||
(40 ILCS 5/2-155.1 new) | ||||
Sec. 2-155.1. Mistake in benefit. If the 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. | ||
If the benefit was mistakenly set too low, the System shall | ||
make a lump sum payment to the recipient of an amount equal to | ||
the difference between the benefits that should have been paid | ||
and those actually paid. | ||
If the benefit was mistakenly set too high, the System may | ||
recover the amount overpaid from the recipient thereof, either | ||
directly or by deducting such amount from the remaining | ||
benefits payable to the recipient. However, if (1) the amount | ||
of the benefit was mistakenly set too high, and (2) the error | ||
was undiscovered for 3 years or longer, and (3) the error was | ||
not the result of incorrect information supplied by the | ||
affected member or beneficiary, then upon discovery of the | ||
mistake the benefit shall be adjusted to the correct level, but | ||
the recipient of the benefit need not repay to the System the | ||
excess amounts received in error. | ||
This Section applies to all mistakes in benefit | ||
calculations that occur before, on, or after the effective date | ||
of this amendatory Act of the 98th General Assembly. | ||
(40 ILCS 5/2-163 new) | ||
Sec. 2-163. Termination of plan. Upon plan termination, a | ||
participant's interest in the pension fund will be | ||
nonforfeitable.
| ||
(40 ILCS 5/3-144.2) (from Ch. 108 1/2, par. 3-144.2)
| ||
Sec. 3-144.2. Mistake in benefit. | ||
(a) If the Fund commits a mistake by setting any benefit at | ||
an incorrect amount, it shall adjust the benefit to the correct | ||
level as soon as may be practicable after the mistake is | ||
discovered. The term "mistake" includes a clerical or | ||
administrative error executed by the Fund or participant as it | ||
relates to a benefit under this Article; however, in no case | ||
shall "mistake" include any benefit as it relates to the | ||
reasonable calculation of the benefit or aspects of the benefit | ||
based on salary, service credit, calculation or determination | ||
of a disability, date of retirement, or other factors | ||
significant to the calculation of the benefit that were | ||
reasonably understood or agreed to by the Fund at the time of | ||
retirement. | ||
(b) If the benefit was mistakenly set too low, the Fund | ||
shall make a lump sum payment to the recipient of an amount | ||
equal to the difference between the benefits that should have | ||
been paid and those actually paid, plus interest at the rate | ||
prescribed by the Public Pension Division of the Department of | ||
Insurance from the date the unpaid amounts accrued to the date | ||
of payment. | ||
(c) If the benefit was mistakenly set too high, the Fund | ||
may recover the amount overpaid from the recipient thereof, | ||
either directly or by deducting such amount from the remaining | ||
benefits payable to the recipient as is indicated by the | ||
recipient. If the overpayment is recovered by deductions from | ||
the remaining benefits payable to the recipient, the monthly | ||
deduction shall not exceed 10% of the corrected monthly benefit | ||
unless otherwise indicated by the recipient. | ||
However, if (i) the amount of the benefit was mistakenly | ||
set too high, and (ii) the error was undiscovered for 3 years | ||
or longer, and (iii) the error was not the result of fraud | ||
committed by the affected participant or beneficiary, then upon | ||
discovery of the mistake the benefit shall be adjusted to the | ||
correct level, but the recipient of the benefit need not repay | ||
to the Fund the excess amounts received in error. | ||
The amount of any overpayment, due to fraud, | ||
misrepresentation
or error, of any pension or benefit granted | ||
under this Article may be deducted
from future payments to the | ||
recipient of such pension or benefit.
| ||
(Source: P.A. 82-623.)
| ||
(40 ILCS 5/3-148) (from Ch. 108 1/2, par. 3-148)
| ||
Sec. 3-148. Administrative review. Except as it relates to | ||
any time limitation to correct a mistake as provided in Section | ||
3-144.2, the The provisions of the Administrative Review Law,
| ||
and all amendments and modifications thereof and the rules | ||
adopted
pursuant thereto, shall apply to and govern all | ||
proceedings for the
judicial review of final administrative | ||
decisions of the retirement board
provided for under this | ||
Article. The term "administrative decision" is as
defined in | ||
Section 3-101 of the Code of Civil Procedure.
| ||
(Source: P.A. 82-783.)
| ||
(40 ILCS 5/4-138.10 new) | ||
Sec. 4-138.10. Mistake in benefit. | ||
(a) If the Fund commits a mistake by setting any benefit at | ||
an incorrect amount, it shall adjust the benefit to the correct | ||
level as soon as may be practicable after the mistake is | ||
discovered. The term "mistake" includes a clerical or | ||
administrative error executed by the Fund or participant as it | ||
relates to a benefit under this Article; however, in no case | ||
shall "mistake" include any benefit as it relates to the | ||
reasonable calculation of the benefit or aspects of the benefit | ||
based on salary, service credit, calculation or determination | ||
of a disability, date of retirement, or other factors | ||
significant to the calculation of the benefit that were | ||
reasonably understood or agreed to by the Fund at the time of | ||
retirement. | ||
(b) If the benefit was mistakenly set too low, the Fund | ||
shall make a lump sum payment to the recipient of an amount | ||
equal to the difference between the benefits that should have | ||
been paid and those actually paid, plus interest at the rate | ||
prescribed by the Public Pension Division of the Department of | ||
Insurance from the date the unpaid amounts accrued to the date | ||
of payment. | ||
(c) If the benefit was mistakenly set too high, the Fund | ||
may recover the amount overpaid from the recipient thereof, | ||
either directly or by deducting such amount from the remaining | ||
benefits payable to the recipient as is indicated by the | ||
recipient. If the overpayment is recovered by deductions from | ||
the remaining benefits payable to the recipient, the monthly | ||
deduction shall not exceed 10% of the corrected monthly benefit | ||
unless otherwise indicated by the recipient. | ||
However, if (i) the amount of the benefit was mistakenly | ||
set too high, and (ii) the error was undiscovered for 3 years | ||
or longer, and (iii) the error was not the result of fraud | ||
committed by the affected participant or beneficiary, then upon | ||
discovery of the mistake the benefit shall be adjusted to the | ||
correct level, but the recipient of the benefit need not repay | ||
to the Fund the excess amounts received in error.
| ||
(40 ILCS 5/4-139) (from Ch. 108 1/2, par. 4-139)
| ||
Sec. 4-139. Administrative review. Except as it relates to | ||
any time limitation to correct a mistake as provided in Section | ||
4-138.10, the The provisions of the Administrative Review Law,
| ||
and all amendments and modifications thereof and the rules | ||
adopted
pursuant thereto, shall apply to and govern all | ||
proceedings for the
judicial review of final administrative | ||
decisions of the retirement board
provided for under this | ||
Article. The term "administrative decision" is as
defined in | ||
Section 3-101 of the Code of Civil Procedure.
| ||
(Source: P.A. 82-783.)
| ||
(40 ILCS 5/14-103.19) (from Ch. 108 1/2, par. 14-103.19)
| ||
Sec. 14-103.19. Actuarial tables. "Actuarial tables": | ||
Tables of mathematical functions derived from
mortality, | ||
disability and turn-over rates, combined with interest
| ||
discount factors as adopted by the board on recommendation of | ||
the
actuary.
| ||
The adopted actuarial tables shall be used to determine the | ||
amount of all benefits under this Article, including any | ||
optional forms of benefits. Optional forms of benefits must be | ||
the actuarial equivalent of the normal benefit payable under | ||
this Article. | ||
(Source: P.A. 80-841.)
| ||
(40 ILCS 5/14-148.1 new) | ||
Sec. 14-148.1. Mistake in benefit. If the 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. | ||
If the benefit was mistakenly set too low, the System shall | ||
make a lump sum payment to the recipient of an amount equal to | ||
the difference between the benefits that should have been paid | ||
and those actually paid. | ||
If the benefit was mistakenly set too high, the System may | ||
recover the amount overpaid from the recipient thereof, either | ||
directly or by deducting such amount from the remaining | ||
benefits payable to the recipient. However, if (1) the amount | ||
of the benefit was mistakenly set too high, and (2) the error | ||
was undiscovered for 3 years or longer, and (3) the error was | ||
not the result of incorrect information supplied by the | ||
affected member or beneficiary, then upon discovery of the | ||
mistake the benefit shall be adjusted to the correct level, but | ||
the recipient of the benefit need not repay to the System the | ||
excess amounts received in error. | ||
This Section applies to all mistakes in benefit | ||
calculations that occur before, on, or after the effective date | ||
of this amendatory Act of the 98th General Assembly. | ||
(40 ILCS 5/14-153.3 new) | ||
Sec. 14-153.3. Termination of plan. Upon plan termination, | ||
a member's interest in the pension fund will be nonforfeitable.
| ||
(40 ILCS 5/18-116) (from Ch. 108 1/2, par. 18-116)
| ||
Sec. 18-116. Actuarial tables.
| ||
"Actuarial tables": Such tabular listings of assumed rates | ||
of death,
disability, retirement and withdrawal from service | ||
and mathematical
functions derived from such rates combined | ||
with an assumed rate of
interest, based upon the experience of | ||
the system, as adopted by the board
upon recommendation by the | ||
actuary.
| ||
The adopted actuarial tables shall be used to determine the | ||
amount of all benefits under this Article, including any | ||
optional forms of benefits. Optional forms of benefits must be | ||
the actuarial equivalent of the normal benefit payable under | ||
this Article. | ||
(Source: Laws 1963, p. 161.)
| ||
(40 ILCS 5/18-162.1 new) | ||
Sec. 18-162.1. Mistake in benefit. If the 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. | ||
If the benefit was mistakenly set too low, the System shall | ||
make a lump sum payment to the recipient of an amount equal to | ||
the difference between the benefits that should have been paid | ||
and those actually paid. | ||
If the benefit was mistakenly set too high, the System may | ||
recover the amount overpaid from the recipient thereof, either | ||
directly or by deducting such amount from the remaining | ||
benefits payable to the recipient. However, if (1) the amount | ||
of the benefit was mistakenly set too high, and (2) the error | ||
was undiscovered for 3 years or longer, and (3) the error was | ||
not the result of incorrect information supplied by the | ||
affected member or beneficiary, then upon discovery of the | ||
mistake the benefit shall be adjusted to the correct level, but | ||
the recipient of the benefit need not repay to the System the | ||
excess amounts received in error. | ||
This Section applies to all mistakes in benefit | ||
calculations that occur before, on, or after the effective date | ||
of this amendatory Act of the 98th General Assembly. | ||
(40 ILCS 5/18-170 new) | ||
Sec. 18-170. Termination of plan. Upon plan termination, a | ||
participant's interest in the pension fund will be | ||
nonforfeitable.
| ||
(40 ILCS 5/21-105.1) (from Ch. 108 1/2, par. 21-105.1)
| ||
Sec. 21-105.1. Election of optional medicare coverage. The | ||
State or
any political subdivision or noncorporate public | ||
entity may elect to
provide optional medicare coverage for its | ||
personnel in the same manner and
subject to the same conditions | ||
as are set forth in Sections 21-103, 21-104
and 21-105 for the | ||
election of Social Security coverage, including a retirement | ||
system established under Article 3, 4, 5, or 6 of this Code, | ||
notwithstanding the provisions contained in Section 21-105 of | ||
this Article.
| ||
(Source: P.A. 84-1472.)
| ||
Section 99. Effective date. This Act takes effect upon | ||
becoming law.
| ||