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91_SB1211
LRB9106117EGfg
1 AN ACT to amend the Illinois Pension Code and to amend
2 the State Mandates Act.
3 Be it enacted by the People of the State of Illinois,
4 represented in the General Assembly:
5 Section 5. The Illinois Pension Code is amended by
6 adding Sections 1-120 and 1-121 as follows:
7 (40 ILCS 5/1-120 new)
8 Sec. 1-120. Claim denial procedures.
9 (a) This Section applies to every pension fund or
10 retirement system organized under any of Articles 2 through
11 18 of this Code. This Section does not prohibit the board of
12 trustees of any pension fund or retirement system from
13 adopting its own procedures for handling and reviewing
14 claims; any such procedures must, however, comply with the
15 requirements of this Section.
16 (b) A person whose application for a benefit is denied
17 shall be given a detailed written explanation of the reasons
18 for that denial. The explanation shall include: (1) the
19 specific reason for the denial; (2) specific citation to the
20 provisions of this Code, the rules adopted under this Code,
21 or the written procedures of the board upon which the denial
22 is based; (3) a description of any additional action or
23 information needed for the person to perfect his or her claim
24 for the benefit and an explanation of why that action or
25 information is needed; (4) an explanation of the means by
26 which the person may seek review of the denial, including the
27 right to a hearing under this Section and the right to seek
28 administrative or judicial review; and (5) an explanation of
29 the time limits for seeking review of the denial and an
30 explanation of the consequences of failing to seek review
31 within those time limits.
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1 (c) A person whose application for a benefit was denied
2 before the effective date of this Section and who has not
3 received a written explanation of the denial substantially
4 similar to the explanation provided for in subsection (b) may
5 request an explanation from the board of trustees within 90
6 days after the effective date of this Section. The requested
7 explanation shall be provided by the board within 60 days
8 after the request is received. Requesting an explanation of
9 a denial of benefits under this subsection (c) does not
10 operate to extend any applicable deadlines for requesting
11 review of the original denial.
12 (d) A person whose application for a benefit is denied
13 is entitled, upon a request made within 60 days after that
14 denial (or such longer period as may be established by the
15 board), to a hearing before the board of trustees. The
16 hearing shall be granted promptly and without unreasonable
17 delay after the request is made. At the hearing, the person
18 may be represented by counsel and is entitled to present
19 relevant evidence and the testimony of witnesses. The board
20 of trustees shall issue its findings and determination in
21 writing, promptly and without unreasonable delay after the
22 hearing. If the board upholds the denial of the benefit, its
23 written determination shall include all of the explanations
24 required under subsection (b).
25 A person whose application for a benefit was refused
26 before the effective date of this Section and who has not
27 been granted a hearing on the matter by the board of trustees
28 may, within 90 days after the effective date of this Section,
29 request a hearing on the denial of the benefit from the board
30 of trustees.
31 The decision of the board after a hearing under this
32 subsection shall be subject to judicial review as a final
33 administrative decision in accordance with the Administrative
34 Review Law.
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1 (40 ILCS 5/1-121 new)
2 Sec. 1-121. Annual statement to members. Every pension
3 fund or retirement system organized under any of Articles 2
4 through 18 of this Code shall provide to every member who is
5 not yet receiving a retirement annuity an annual statement of
6 the member's benefits and contributions. The annual
7 statement shall also include a statement explaining the total
8 amount of unfunded liabilities of the pension fund or
9 retirement system and its current funding ratio, based on the
10 most recent financial audit and examination of the pension
11 fund or retirement system.
12 Section 90. The State Mandates Act is amended by adding
13 Section 8.23 as follows:
14 (30 ILCS 805/8.23 new)
15 Sec. 8.23. Exempt mandate. Notwithstanding Sections 6
16 and 8 of this Act, no reimbursement by the State is required
17 for the implementation of any mandate created by this
18 amendatory Act of the 91st General Assembly.
19 Section 99. Effective date. This Act takes effect upon
20 becoming law.