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| | SB1956 Engrossed | | LRB103 25834 RPS 52185 b |
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1 | | AN ACT concerning public employee benefits.
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2 | | Be it enacted by the People of the State of Illinois,
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3 | | represented in the General Assembly:
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4 | | Section 5. The Illinois Pension Code is amended by adding |
5 | | Section 5-240 as follows: |
6 | | (40 ILCS 5/5-240 new) |
7 | | Sec. 5-240. Action by Fund against third party; |
8 | | subrogation.
In those cases where the injury or death for |
9 | | which a disability or death benefit is payable under this |
10 | | Article was caused under circumstances creating a legal |
11 | | liability on the part of some person or entity ("third party") |
12 | | to pay damages to the policeman, legal proceedings may be |
13 | | taken against such third party to recover damages |
14 | | notwithstanding the Fund's payment of or liability to pay |
15 | | disability or death benefits under this Article. In such case, |
16 | | however, if the action against such third party is brought by |
17 | | the injured policeman or his or her personal representative |
18 | | and judgment is obtained and paid, or settlement is made with |
19 | | such third party, either with or without suit, from the amount |
20 | | received by such policeman or personal representative, then |
21 | | there shall be paid to the Fund the amount of money |
22 | | representing the death or disability benefits paid or to be |
23 | | paid to the disabled policeman pursuant to the provisions of |
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| | SB1956 Engrossed | - 2 - | LRB103 25834 RPS 52185 b |
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1 | | this Article. In all circumstances where the action against a |
2 | | third party is brought by the disabled policeman or his or her |
3 | | personal representative, the Fund shall have a claim or lien |
4 | | upon any recovery, by judgment or settlement, out of which the |
5 | | disabled policeman or his or her personal representative might |
6 | | be compensated from such third party. The Fund may satisfy or |
7 | | enforce any such claim or lien only from that portion of a |
8 | | recovery that has been, or can be, allocated or attributed to |
9 | | past and future lost salary, which recovery is by judgment or |
10 | | settlement. The Fund's claim or lien shall not be satisfied or |
11 | | enforced from that portion of a recovery that has been, or can |
12 | | be, allocated or attributed to medical care and treatment, |
13 | | pain and suffering, loss of consortium, and attorney's fees |
14 | | and costs. |
15 | | Where an action is brought by the disabled policeman or |
16 | | his or her personal representative, the disabled policeman or |
17 | | his or her personal representative shall forthwith notify the |
18 | | Fund, by personal service or registered mail, of such fact and |
19 | | of the name of the court where such suit is brought, filing |
20 | | proof of such notice in such action. The Fund may, at any time |
21 | | thereafter, intervene in such action upon its own motion. |
22 | | Therefore, no release or settlement of claim for damages by |
23 | | reason of injury to the disabled policeman, and no |
24 | | satisfaction of judgment in such proceedings, shall be valid |
25 | | without the written consent of the Board of Trustees |
26 | | authorized by this Code to administer the Fund created under |
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| | SB1956 Engrossed | - 3 - | LRB103 25834 RPS 52185 b |
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1 | | this Article, except that such consent shall be provided |
2 | | expeditiously following a settlement or judgment. |
3 | | If the disabled policeman or his or her personal |
4 | | representative has not instituted an action against a third |
5 | | party at a time when only 3 months remain before such action |
6 | | would thereafter be barred by law, the Fund may, in its own |
7 | | name or in the name of the personal representative, commence a |
8 | | proceeding against such third party seeking the recovery of |
9 | | all damages on account of injuries caused to the policeman. |
10 | | From any amount so recovered, the Fund shall pay to the |
11 | | personal representative of such disabled policeman all sums |
12 | | collected from such third party by judgment or otherwise in |
13 | | excess of the amount of disability or death benefits paid or to |
14 | | be paid under this Article to the disabled policeman or his |
15 | | personal representative, and such costs, attorney's fees, and |
16 | | reasonable expenses as may be incurred by the Fund in making |
17 | | the collection or in enforcing such liability. The Fund's |
18 | | recovery shall be satisfied only from that portion of a |
19 | | recovery that has been or can be allocated or attributed to |
20 | | past and future lost salary, which recovery is by judgment or |
21 | | settlement. The Fund's recovery shall not be satisfied from |
22 | | that portion of the recovery that has been or can be allocated |
23 | | or attributed to medical care and treatment, pain and |
24 | | suffering, loss of consortium, and attorney's fees and costs. |
25 | | Additionally, with respect to any right of subrogation |
26 | | asserted by the Fund under this Section, the Fund, in the |
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| | SB1956 Engrossed | - 4 - | LRB103 25834 RPS 52185 b |
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1 | | exercise of discretion, may determine what amount from past or |
2 | | future salary shall be appropriate under the circumstances to |
3 | | collect from the recovery obtained on behalf of the disabled |
4 | | policeman. |
5 | | Any recovery obtained by the Fund pursuant to this Section |
6 | | shall be reduced by the offset for any compensation, award, or |
7 | | other payment to the employee under the Workers' Compensation |
8 | | Act or the Workers' Occupational Diseases Act relating to such |
9 | | disability afforded to the Fund pursuant to this Article, |
10 | | except that the reduction in the recovery for such offset |
11 | | shall be limited to that portion of the compensation, award, |
12 | | or other payment that is or reasonably can be allocated or |
13 | | attributed to past or future salary.
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14 | | Section 99. Effective date. This Act takes effect upon |
15 | | becoming law.
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