Public Act 098-1117
 
SB3309 EnrolledLRB098 17036 RPM 55472 b

    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.