HB5919 Engrossed LRB098 18361 EFG 53498 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 changing
5		Sections 3-144.2, 3-148, and 4-139 and by adding Section
6		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
10		amount, it shall recalculate the benefit as soon as may be
11		practicable after the mistake is discovered.
12		(b) If the benefit was mistakenly set too low, the Fund
13		shall make a lump sum payment to the recipient of an amount
14		equal to the difference between the benefits that should have
15		been paid and those actually paid, plus interest at the
16		prescribed rate from the date the unpaid amounts accrued to the
17		date of payment.
18		(c) If the benefit was mistakenly set too high, the Fund
19		may recover the amount overpaid from the recipient thereof,
20		including interest at the prescribed rate from the date of
21		overpayment to the date of recovery, either directly or by
22		deducting such amount from the remaining benefits payable to
23		the recipient. If the overpayment is recovered by deductions

HB5919 Engrossed - 2 - LRB098 18361 EFG 53498 b
1		from the remaining benefits payable to the recipient, the
2		monthly deduction shall not exceed 10% of the corrected monthly
3		benefit amount, unless otherwise agreed to by the recipient of
4		the benefit.
5		However, if (i) the amount of the benefit was mistakenly
6		set too high, and (ii) the error was undiscovered for 3 years
7		or longer, and (iii) the error was not the result of incorrect
8		information supplied by the affected participant or
9		beneficiary, then upon discovery of the mistake the benefit
10		shall be adjusted to the correct level, but the recipient of
11		the benefit need not repay to the Fund the excess amounts
12		received in error.
13		(d) In the event of any conflict between this Section and
14		the Administrative Review Law, including but not limited to any
15		period established under that Law having the effect of limiting
16		the time in which a mistake in benefit may be corrected, this
17		Section is intended to control.
18		The amount of any overpayment, due to fraud,
19		misrepresentation or error, of any pension or benefit granted
20		under this Article may be deducted from future payments to the
21		recipient of such pension or benefit.
22		(Source: P.A. 82-623.)
23		(40 ILCS 5/3-148) (from Ch. 108 1/2, par. 3-148)
24		Sec. 3-148. Administrative review. Except as provided in
25		Section 3-144.2, pertaining to the correction of mistakes in

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

HB5919 Engrossed - 4 - LRB098 18361 EFG 53498 b
1		from the remaining benefits payable to the recipient, the
2		monthly deduction shall not exceed 10% of the corrected monthly
3		benefit amount, unless otherwise agreed to by the recipient of
4		the benefit.
5		However, if (i) the amount of the benefit was mistakenly
6		set too high, and (ii) the error was undiscovered for 3 years
7		or longer, and (iii) the error was not the result of incorrect
8		information supplied by the affected participant or
9		beneficiary, then upon discovery of the mistake the benefit
10		shall be adjusted to the correct level, but the recipient of
11		the benefit need not repay to the Fund the excess amounts
12		received in error.
13		(d) In the event of any conflict between this Section and
14		the Administrative Review Law, including but not limited to any
15		period established under that Law having the effect of limiting
16		the time in which a mistake in benefit may be corrected, this
17		Section is intended to control.
18		(40 ILCS 5/4-139) (from Ch. 108 1/2, par. 4-139)
19		Sec. 4-139. Administrative review. Except as provided in
20		Section 4-138.10, pertaining to the correction of mistakes in
21		benefits, the The provisions of the Administrative Review Law,
22		and all amendments and modifications thereof and the rules
23		adopted pursuant thereto, shall apply to and govern all
24		proceedings for the judicial review of final administrative
25		decisions of the retirement board provided for under this

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