Bill Text: IL HB5919 | 2013-2014 | 98th General Assembly | Engrossed

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Bill Title: Amends the Downstate Police and Firefighter Articles of the Illinois Pension Code. Provides that, if at any time the Public Pension Division of the Department of Insurance finds that a pension has been calculated using compensation that should not have been included in salary or final average salary, then the beneficiary of that pension shall pay back to the fund an amount equal to the benefit incurred by using that compensation. Effective immediately.

Spectrum: Slight Partisan Bill (Republican 2-1)

Status: (Failed) 2014-12-03 - Session Sine Die [HB5919 Detail]

Download: Illinois-2013-HB5919-Engrossed.html

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HB5919 Engrossed LRB098 18361 EFG 53498 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 3-144.2, 3-148, and 4-139 and by adding Section
4-138.10 as follows:
(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 mistakenly sets any benefit at an incorrect
amount, it shall recalculate the benefit as soon as may be
practicable after the mistake is discovered.
(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
prescribed rate 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,
including interest at the prescribed rate from the date of
overpayment to the date of recovery, either directly or by
deducting such amount from the remaining benefits payable to
the recipient. If the overpayment is recovered by deductions

HB5919 Engrossed - 2 - LRB098 18361 EFG 53498 b
from the remaining benefits payable to the recipient, the
monthly deduction shall not exceed 10% of the corrected monthly
benefit amount, unless otherwise agreed to by the recipient of
the benefit.
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 incorrect
information supplied 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.
(d) In the event of any conflict between this Section and
the Administrative Review Law, including but not limited to any
period established under that Law having the effect of limiting
the time in which a mistake in benefit may be corrected, this
Section is intended to control.
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 provided in
Section 3-144.2, pertaining to the correction of mistakes in

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benefits, 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 mistakenly sets any benefit at an incorrect
amount, it shall recalculate the benefit as soon as may be
practicable after the mistake is discovered.
(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
prescribed rate 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,
including interest at the prescribed rate from the date of
overpayment to the date of recovery, either directly or by
deducting such amount from the remaining benefits payable to
the recipient. If the overpayment is recovered by deductions

HB5919 Engrossed - 4 - LRB098 18361 EFG 53498 b
from the remaining benefits payable to the recipient, the
monthly deduction shall not exceed 10% of the corrected monthly
benefit amount, unless otherwise agreed to by the recipient of
the benefit.
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 incorrect
information supplied 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.
(d) In the event of any conflict between this Section and
the Administrative Review Law, including but not limited to any
period established under that Law having the effect of limiting
the time in which a mistake in benefit may be corrected, this
Section is intended to control.
(40 ILCS 5/4-139) (from Ch. 108 1/2, par. 4-139)
Sec. 4-139. Administrative review. Except as provided in
Section 4-138.10, pertaining to the correction of mistakes in
benefits, 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

HB5919 Engrossed - 5 - LRB098 18361 EFG 53498 b
Article. The term "administrative decision" is as defined in
Section 3-101 of the Code of Civil Procedure.
(Source: P.A. 82-783.)
Section 99. Effective date. This Act takes effect upon
becoming law.