Rep. Jeanne M Ives

Filed: 4/2/2014

 

 


 

 


 
09800HB5919ham002LRB098 18361 RPM 57985 a

1
AMENDMENT TO HOUSE BILL 5919

2    AMENDMENT NO. ______. Amend House Bill 5919 by replacing
3everything after the enacting clause with the following:
 
4    "Section 5. The Illinois Pension Code is amended by
5changing Sections 3-144.2, 3-148, and 4-139 and by adding
6Section 4-138.10 as follows:
 
7    (40 ILCS 5/3-144.2)  (from Ch. 108 1/2, par. 3-144.2)
8    Sec. 3-144.2. Mistake in benefit.
9    (a) If the Fund mistakenly sets any benefit at an incorrect
10amount, it shall recalculate the benefit as soon as may be
11practicable after the mistake is discovered.
12    (b) If the benefit was mistakenly set too low, the Fund
13shall make a lump sum payment to the recipient of an amount
14equal to the difference between the benefits that should have
15been paid and those actually paid, plus interest at the
16prescribed rate from the date the unpaid amounts accrued to the

 

 

09800HB5919ham002- 2 -LRB098 18361 RPM 57985 a

1date of payment.
2    (c) If the benefit was mistakenly set too high, the Fund
3may recover the amount overpaid from the recipient thereof,
4including interest at the prescribed rate from the date of
5overpayment to the date of recovery, either directly or by
6deducting such amount from the remaining benefits payable to
7the recipient. If the overpayment is recovered by deductions
8from the remaining benefits payable to the recipient, the
9monthly deduction shall not exceed 10% of the corrected monthly
10benefit amount, unless otherwise agreed to by the recipient of
11the benefit.
12    However, if (i) the amount of the benefit was mistakenly
13set too high, and (ii) the error was undiscovered for 3 years
14or longer, and (iii) the error was not the result of incorrect
15information supplied by the affected participant or
16beneficiary, then upon discovery of the mistake the benefit
17shall be adjusted to the correct level, but the recipient of
18the benefit need not repay to the Fund the excess amounts
19received in error.
20    (d) In the event of any conflict between this Section and
21the Administrative Review Law, including but not limited to any
22period established under that Law having the effect of limiting
23the time in which a mistake in benefit may be corrected, this
24Section is intended to control.
25    The amount of any overpayment, due to fraud,
26misrepresentation or error, of any pension or benefit granted

 

 

09800HB5919ham002- 3 -LRB098 18361 RPM 57985 a

1under this Article may be deducted from future payments to the
2recipient of such pension or benefit.
3(Source: P.A. 82-623.)
 
4    (40 ILCS 5/3-148)  (from Ch. 108 1/2, par. 3-148)
5    Sec. 3-148. Administrative review. Except as provided in
6Section 3-144.2, pertaining to the correction of mistakes in
7benefits, the The provisions of the Administrative Review Law,
8and all amendments and modifications thereof and the rules
9adopted pursuant thereto, shall apply to and govern all
10proceedings for the judicial review of final administrative
11decisions of the retirement board provided for under this
12Article. The term "administrative decision" is as defined in
13Section 3-101 of the Code of Civil Procedure.
14(Source: P.A. 82-783.)
 
15    (40 ILCS 5/4-138.10 new)
16    Sec. 4-138.10. Mistake in benefit.
17    (a) If the Fund mistakenly sets any benefit at an incorrect
18amount, it shall recalculate the benefit as soon as may be
19practicable after the mistake is discovered.
20    (b) If the benefit was mistakenly set too low, the Fund
21shall make a lump sum payment to the recipient of an amount
22equal to the difference between the benefits that should have
23been paid and those actually paid, plus interest at the
24prescribed rate from the date the unpaid amounts accrued to the

 

 

09800HB5919ham002- 4 -LRB098 18361 RPM 57985 a

1date of payment.
2    (c) If the benefit was mistakenly set too high, the Fund
3may recover the amount overpaid from the recipient thereof,
4including interest at the prescribed rate from the date of
5overpayment to the date of recovery, either directly or by
6deducting such amount from the remaining benefits payable to
7the recipient. If the overpayment is recovered by deductions
8from the remaining benefits payable to the recipient, the
9monthly deduction shall not exceed 10% of the corrected monthly
10benefit amount, unless otherwise agreed to by the recipient of
11the benefit.
12    However, if (i) the amount of the benefit was mistakenly
13set too high, and (ii) the error was undiscovered for 3 years
14or longer, and (iii) the error was not the result of incorrect
15information supplied by the affected participant or
16beneficiary, then upon discovery of the mistake the benefit
17shall be adjusted to the correct level, but the recipient of
18the benefit need not repay to the Fund the excess amounts
19received in error.
20    (d) In the event of any conflict between this Section and
21the Administrative Review Law, including but not limited to any
22period established under that Law having the effect of limiting
23the time in which a mistake in benefit may be corrected, this
24Section is intended to control.
 
25    (40 ILCS 5/4-139)  (from Ch. 108 1/2, par. 4-139)

 

 

09800HB5919ham002- 5 -LRB098 18361 RPM 57985 a

1    Sec. 4-139. Administrative review. Except as provided in
2Section 4-138.10, pertaining to the correction of mistakes in
3benefits, the The provisions of the Administrative Review Law,
4and all amendments and modifications thereof and the rules
5adopted pursuant thereto, shall apply to and govern all
6proceedings for the judicial review of final administrative
7decisions of the retirement board provided for under this
8Article. The term "administrative decision" is as defined in
9Section 3-101 of the Code of Civil Procedure.
10(Source: P.A. 82-783.)
 
11    Section 99. Effective date. This Act takes effect upon
12becoming law.".