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Public Act 92-0714
HB4451 Enrolled LRB9211335WHpr
AN ACT concerning workers' compensation.
Be it enacted by the People of the State of Illinois,
represented in the General Assembly:
Section 5. The Workers' Compensation Act is amended by
changing Section 7 as follows:
(820 ILCS 305/7) (from Ch. 48, par. 138.7)
Sec. 7. The amount of compensation which shall be paid
for an accidental injury to the employee resulting in death
is:
(a) If the employee leaves surviving a widow, widower,
child or children, the applicable weekly compensation rate
computed in accordance with subparagraph 2 of paragraph (b)
of Section 8, shall be payable during the life of the widow
or widower and if any surviving child or children shall not
be physically or mentally incapacitated then until the death
of the widow or widower or until the youngest child shall
reach the age of 18, whichever shall come later; provided
that if such child or children shall be enrolled as a full
time student in any accredited educational institution, the
payments shall continue until such child has attained the age
of 25. In the event any surviving child or children shall be
physically or mentally incapacitated, the payments shall
continue for the duration of such incapacity.
The term "child" means a child whom the deceased employee
left surviving, including a posthumous child, a child legally
adopted, a child whom the deceased employee was legally
obligated to support or a child to whom the deceased employee
stood in loco parentis. The term "children" means the plural
of "child".
The term "physically or mentally incapacitated child or
children" means a child or children incapable of engaging in
regular and substantial gainful employment.
In the event of the remarriage of a widow or widower,
where the decedent did not leave surviving any child or
children who, at the time of such remarriage, are entitled to
compensation benefits under this Act, the surviving spouse
shall be paid a lump sum equal to 2 years compensation
benefits and all further rights of such widow or widower
shall be extinguished.
If the employee leaves surviving any child or children
under 18 years of age who at the time of death shall be
entitled to compensation under this paragraph (a) of this
Section, the weekly compensation payments herein provided for
such child or children shall in any event continue for a
period of not less than 6 years.
Any beneficiary entitled to compensation under this
paragraph (a) of this Section shall receive from the special
fund provided in paragraph (f) of this Section, in addition
to the compensation herein provided, supplemental benefits in
accordance with paragraph (g) of Section 8.
(b) If no compensation is payable under paragraph (a) of
this Section and the employee leaves surviving a parent or
parents who at the time of the accident were totally
dependent upon the earnings of the employee then weekly
payments equal to the compensation rate payable in the case
where the employee leaves surviving a widow or widower, shall
be paid to such parent or parents for the duration of their
lives, and in the event of the death of either, for the life
of the survivor.
(c) If no compensation is payable under paragraphs (a)
or (b) of this Section and the employee leaves surviving any
child or children who are not entitled to compensation under
the foregoing paragraph (a) but who at the time of the
accident were nevertheless in any manner dependent upon the
earnings of the employee, or leaves surviving a parent or
parents who at the time of the accident were partially
dependent upon the earnings of the employee, then there shall
be paid to such dependent or dependents for a period of 8
years weekly compensation payments at such proportion of the
applicable rate if the employee had left surviving a widow or
widower as such dependency bears to total dependency. In the
event of the death of any such beneficiary the share of such
beneficiary shall be divided equally among the surviving
beneficiaries and in the event of the death of the last such
beneficiary all the rights under this paragraph shall be
extinguished.
(d) If no compensation is payable under paragraphs (a),
(b) or (c) of this Section and the employee leaves surviving
any grandparent, grandparents, grandchild or grandchildren or
collateral heirs dependent upon the employee's earnings to
the extent of 50% or more of total dependency, then there
shall be paid to such dependent or dependents for a period of
5 years weekly compensation payments at such proportion of
the applicable rate if the employee had left surviving a
widow or widower as such dependency bears to total
dependency. In the event of the death of any such
beneficiary the share of such beneficiary shall be divided
equally among the surviving beneficiaries and in the event of
the death of the last such beneficiary all rights hereunder
shall be extinguished.
(e) The compensation to be paid for accidental injury
which results in death, as provided in this Section, shall be
paid to the persons who form the basis for determining the
amount of compensation to be paid by the employer, the
respective shares to be in the proportion of their respective
dependency at the time of the accident on the earnings of the
deceased. The Commission or an Arbitrator thereof may, in
its or his discretion, order or award the payment to the
parent or grandparent of a child for the latter's support the
amount of compensation which but for such order or award
would have been paid to such child as its share of the
compensation payable, which order or award may be modified
from time to time by the Commission in its discretion with
respect to the person to whom shall be paid the amount of the
order or award remaining unpaid at the time of the
modification.
The payments of compensation by the employer in
accordance with the order or award of the Commission
discharges such employer from all further obligation as to
such compensation.
(f) The sum of $4200 for burial expenses shall be paid
by the employer to the widow or widower, other dependent,
next of kin or to the person or persons incurring the expense
of burial.
In the event the employer failed to provide necessary
first aid, medical, surgical or hospital service, he shall
pay the cost thereof to the person or persons entitled to
compensation under paragraphs (a), (b), (c) or (d) of this
Section, or to the person or persons incurring the obligation
therefore, or providing the same.
On January 15 and July 15, 1981, and on January 15 and
July 15 of each year thereafter the employer shall within 60
days pay a sum equal to 1/8 of 1% of all compensation
payments made by him after July 1, 1980, either under this
Act or the Workers' Occupational Diseases Act, whether by
lump sum settlement or weekly compensation payments, but not
including hospital, surgical or rehabilitation payments, made
during the first 6 months and during the second 6 months
respectively of the fiscal year next preceding the date of
the payments, into a special fund which shall be designated
the "Second Injury Fund", of which the State Treasurer is
ex-officio custodian, such special fund to be held and
disbursed for the purposes hereinafter stated in paragraphs
(f) and (g) of Section 8, either upon the order of the
Commission or of a competent court. Said special fund shall
be deposited the same as are State funds and any interest
accruing thereon shall be added thereto every 6 months. It
is subject to audit the same as State funds and accounts and
is protected by the General bond given by the State
Treasurer. It is considered always appropriated for the
purposes of disbursements as provided in Section 8, paragraph
(f), of this Act, and shall be paid out and disbursed as
therein provided and shall not at any time be appropriated or
diverted to any other use or purpose.
On January 15, 1991, the employer shall further pay a sum
equal to one half of 1% of all compensation payments made by
him from January 1, 1990 through June 30, 1990 either under
this Act or under the Workers' Occupational Diseases Act,
whether by lump sum settlement or weekly compensation
payments, but not including hospital, surgical or
rehabilitation payments, into an additional Special Fund
which shall be designated as the "Rate Adjustment Fund". On
March 15, 1991, the employer shall pay into the Rate
Adjustment Fund a sum equal to one half of 1% of all such
compensation payments made from July 1, 1990 through December
31, 1990. Within 60 days after July 15, 1991, the employer
shall pay into the Rate Adjustment Fund a sum equal to one
half of 1% of all such compensation payments made from
January 1, 1991 through June 30, 1991. Within 60 days after
January 15 of 1992 and each subsequent year through 1996, the
employer shall pay into the Rate Adjustment Fund a sum equal
to one half of 1% of all such compensation payments made in
the last 6 months of the preceding calendar year. Within 60
days after July 15 of 1992 and each subsequent year through
1995, the employer shall pay into the Rate Adjustment Fund a
sum equal to one half of 1% of all such compensation payments
made in the first 6 months of the same calendar year. Within
60 days after January 15 of 1997 and each subsequent year,
the employer shall pay into the Rate Adjustment Fund a sum
equal to three-fourths of 1% of all such compensation
payments made in the last 6 months of the preceding calendar
year. Within 60 days after July 15 of 1996 and each
subsequent year, the employer shall pay into the Rate
Adjustment Fund a sum equal to three-fourths of 1% of all
such compensation payments made in the first 6 months of the
same calendar year. The administrative costs of collecting
assessments from employers for the Rate Adjustment Fund shall
be paid from the Rate Adjustment Fund. The cost of an
actuarial audit of the Fund shall be paid from the Rate
Adjustment Fund and the audit shall be completed no later
than July 1, 1997. The State Treasurer is ex officio
custodian of such Special Fund and the same shall be held and
disbursed for the purposes hereinafter stated in paragraphs
(f) and (g) of Section 8 upon the order of the Commission or
of a competent court. The Rate Adjustment Fund shall be
deposited the same as are State funds and any interest
accruing thereon shall be added thereto every 6 months. It
shall be subject to audit the same as State funds and
accounts and shall be protected by the general bond given by
the State Treasurer. It is considered always appropriated
for the purposes of disbursements as provided in paragraphs
(f) and (g) of Section 8 of this Act and shall be paid out
and disbursed as therein provided and shall not at any time
be appropriated or diverted to any other use or purpose.
Within 5 days after the effective date of this amendatory Act
of 1990, the Comptroller and the State Treasurer shall
transfer $1,000,000 from the General Revenue Fund to the Rate
Adjustment Fund. By February 15, 1991, the Comptroller and
the State Treasurer shall transfer $1,000,000 from the Rate
Adjustment Fund to the General Revenue Fund. From the
effective date of this amendatory Act of 1993 to October 1,
1997, The Comptroller and Treasurer are authorized to make
transfers at the request of the Chairman up to a total of
$15,000,000 $7,000,000 from the Second Injury Fund, the
General Revenue Fund, and the Workers' Compensation Benefit
Trust Fund to the Rate Adjustment Fund to the extent that
there is insufficient money in the Rate Adjustment Fund to
pay claims and obligations. Amounts may be transferred from
the General Revenue Fund only if the funds in the Second
Injury Fund or the Workers' Compensation Benefit Trust Fund
are insufficient to pay claims and obligations of the Rate
Adjustment Fund. All amounts transferred from the Second
Injury Fund, the General Revenue Fund, and the Workers'
Compensation Benefit Trust Fund shall be repaid from the Rate
Adjustment Fund within 270 days of a transfer, together with
interest at the rate earned by moneys on deposit in the Fund
or Funds from which the moneys were transferred.
Upon a finding by the Commission, after reasonable notice
and hearing, that any employer has willfully and knowingly
failed to pay the proper amounts into the Second Injury Fund
or the Rate Adjustment Fund required by this Section or if
such payments are not made within the time periods prescribed
by this Section, the employer shall, in addition to such
payments, pay a penalty of 20% of the amount required to be
paid or $2,500, whichever is greater, for each year or part
thereof of such failure to pay. This penalty shall only
apply to obligations of an employer to the Second Injury Fund
or the Rate Adjustment Fund accruing after the effective date
of this amendatory Act of 1989. All or part of such a penalty
may be waived by the Commission for good cause shown.
Any obligations of an employer to the Second Injury Fund
and Rate Adjustment Fund accruing prior to the effective date
of this amendatory Act of 1989 shall be paid in full by such
employer within 5 years of the effective date of this
amendatory Act of 1989, with at least one-fifth of such
obligation to be paid during each year following the
effective date of this amendatory Act of 1989. If the
Commission finds, following reasonable notice and hearing,
that an employer has failed to make timely payment of any
obligation accruing under the preceding sentence, the
employer shall, in addition to all other payments required by
this Section, be liable for a penalty equal to 20% of the
overdue obligation or $2,500, whichever is greater, for each
year or part thereof that obligation is overdue. All or part
of such a penalty may be waived by the Commission for good
cause shown.
The Chairman of the Industrial Commission shall,
annually, furnish to the Director of the Department of
Insurance a list of the amounts paid into the Second Injury
Fund and the Rate Adjustment Fund by each insurance company
on behalf of their insured employers. The Director shall
verify to the Chairman that the amounts paid by each
insurance company are accurate as best as the Director can
determine from the records available to the Director. The
Chairman shall verify that the amounts paid by each
self-insurer are accurate as best as the Chairman can
determine from records available to the Chairman. The
Chairman may require each self-insurer to provide information
concerning the total compensation payments made upon which
contributions to the Second Injury Fund and the Rate
Adjustment Fund are predicated and any additional information
establishing that such payments have been made into these
funds. Any deficiencies in payments noted by the Director or
Chairman shall be subject to the penalty provisions of this
Act.
The State Treasurer, or his duly authorized
representative, shall be named as a party to all proceedings
in all cases involving claim for the loss of, or the
permanent and complete loss of the use of one eye, one foot,
one leg, one arm or one hand.
The State Treasurer or his duly authorized agent shall
have the same rights as any other party to the proceeding,
including the right to petition for review of any award. The
reasonable expenses of litigation, such as medical
examinations, testimony, and transcript of evidence, incurred
by the State Treasurer or his duly authorized representative,
shall be borne by the Second Injury Fund.
If the award is not paid within 30 days after the date
the award has become final, the Commission shall proceed to
take judgment thereon in its own name as is provided for
other awards by paragraph (g) of Section 19 of this Act and
take the necessary steps to collect the award.
Any person, corporation or organization who has paid or
become liable for the payment of burial expenses of the
deceased employee may in his or its own name institute
proceedings before the Commission for the collection thereof.
For the purpose of administration, receipts and
disbursements, the Special Fund provided for in paragraph (f)
of this Section shall be administered jointly with the
Special Fund provided for in Section 7, paragraph (f) of the
Workers' Occupational Diseases Act.
(g) All compensation, except for burial expenses
provided in this Section to be paid in case accident results
in death, shall be paid in installments equal to the
percentage of the average earnings as provided for in Section
8, paragraph (b) of this Act, at the same intervals at which
the wages or earnings of the employees were paid. If this is
not feasible, then the installments shall be paid weekly.
Such compensation may be paid in a lump sum upon petition as
provided in Section 9 of this Act. However, in addition to
the benefits provided by Section 9 of this Act where
compensation for death is payable to the deceased's widow,
widower or to the deceased's widow, widower and one or more
children, and where a partial lump sum is applied for by such
beneficiary or beneficiaries within 18 months after the
deceased's death, the Commission may, in its discretion,
grant a partial lump sum of not to exceed 100 weeks of the
compensation capitalized at their present value upon the
basis of interest calculated at 3% per annum with annual
rests, upon a showing that such partial lump sum is for the
best interest of such beneficiary or beneficiaries.
(h) In case the injured employee is under 16 years of
age at the time of the accident and is illegally employed,
the amount of compensation payable under paragraphs (a), (b),
(c), (d) and (f) of this Section shall be increased 50%.
Nothing herein contained repeals or amends the provisions
of the Child Labor Law relating to the employment of minors
under the age of 16 years.
However, where an employer has on file an employment
certificate issued pursuant to the Child Labor Law or work
permit issued pursuant to the Federal Fair Labor Standards
Act, as amended, or a birth certificate properly and duly
issued, such certificate, permit or birth certificate is
conclusive evidence as to the age of the injured minor
employee for the purposes of this Section only.
(i) Whenever the dependents of a deceased employee are
aliens not residing in the United States, Mexico or Canada,
the amount of compensation payable is limited to the
beneficiaries described in paragraphs (a), (b) and (c) of
this Section and is 50% of the compensation provided in
paragraphs (a), (b) and (c) of this Section, except as
otherwise provided by treaty.
In a case where any of the persons who would be entitled
to compensation is living at any place outside of the United
States, then payment shall be made to the personal
representative of the deceased employee. The distribution by
such personal representative to the persons entitled shall be
made to such persons and in such manner as the Commission
orders.
(Source: P.A. 88-672, eff. 12-14-94; 89-470, eff. 6-13-96.)
Passed in the General Assembly May 07, 2002.
Approved July 23, 2002.
Effective January 01, 2003.
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