Full Text of SB1956 103rd General Assembly
SB1956eng 103RD GENERAL ASSEMBLY |
| | SB1956 Engrossed | | LRB103 25834 RPS 52185 b |
|
| 1 | | AN ACT concerning public employee benefits.
| 2 | | Be it enacted by the People of the State of Illinois,
| 3 | | represented in the General Assembly:
| 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 |
| | | SB1956 Engrossed | - 2 - | LRB103 25834 RPS 52185 b |
|
| 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 |
| | | SB1956 Engrossed | - 3 - | LRB103 25834 RPS 52185 b |
|
| 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 |
| | | SB1956 Engrossed | - 4 - | LRB103 25834 RPS 52185 b |
|
| 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.
| 14 | | Section 99. Effective date. This Act takes effect upon | 15 | | becoming law.
|
|