(40 ILCS 5/15-186.1) (from Ch. 108 1/2, par. 15-186.1)
Sec. 15-186.1. Mistake in benefit calculation and overpayment recovery. (a) Mistake in benefit calculation. 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, plus
interest at the effective rate from the date the unpaid amounts accrued to
the date of payment.
If the benefit was mistakenly set too high, the System may recover the
amount overpaid from the recipient thereof, plus interest at the effective
rate from the date of overpayment to the date of recovery, 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 or information omitted 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.
(b) Overpayment recovery. Regardless of the date an overpayment is discovered, if the System determines that the overpayment has occurred for any reason other than those specified in subsection (a) of this Section, the System may recover the overpayment from the recipient thereof or the recipient's estate, plus interest at the effective rate from the date of the overpayment to the date of recovery, either directly or by deducting such amount from the remaining benefits payable to the recipient or the recipient's estate, or by any other means available to the System. This subsection (b) applies to overpayments occurring before, on, or after the effective date of this amendatory Act of the 102nd General Assembly. (Source: P.A. 102-746, eff. 5-6-22.)
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