Bill Text: IL SB2907 | 2021-2022 | 102nd General Assembly | Introduced

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Bill Title: If and only if Senate Bill 1056 of the 102nd General Assembly, as amended by House Amendment 1, becomes law, amends the Chicago Teacher Article of the Illinois Pension Code. Provides that if an annuitant does not elect to repay a mistaken overpayment from the Fund by a lump sum, monthly payments, or reduction of the corrected benefit, the annuitant may have his or her automatic annual increase discontinued beginning in January of the following calendar year until the pension payment matches his or her corrected pension rate. Provides that upon full repayment, the annuitant's automatic annual increase shall resume at the rate of increase equivalent to a comparable annuitant whose automatic annual increase was not discontinued. Removes language that provides that if (1) the amount of the benefit was mistakenly set too high, (2) the error was undiscovered for 3 years or longer from the date of the first mistaken benefit payment, and (3) the error was not the result of incorrect information supplied by the affected member, then upon discovery of the mistake the benefit shall be adjusted to the correct level, but the recipient of the benefit shall not be required to repay to the Fund the excess amounts received in error. Effective immediately or on the date Article 20 of Senate Bill 1056 takes effect, whichever is later.

Spectrum: Partisan Bill (Democrat 1-0)

Status: (Introduced - Dead) 2021-05-31 - Referred to Assignments [SB2907 Detail]

Download: Illinois-2021-SB2907-Introduced.html

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102ND GENERAL ASSEMBLY State of Illinois 2021 and 2022 SB2907 Introduced 5/31/2021, by Sen. Robert F. Martwick SYNOPSIS AS INTRODUCED:
40 ILCS 5/17-151.1
If and only if Senate Bill 1056 of the 102nd General Assembly, as amended by House Amendment 1, becomes law, amends the Chicago Teacher Article of the Illinois Pension Code. Provides that if an annuitant does not elect to repay a mistaken overpayment from the Fund by a lump sum, monthly payments, or reduction of the corrected benefit, the annuitant may have his or her automatic annual increase discontinued beginning in January of the following calendar year until the pension payment matches his or her corrected pension rate. Provides that upon full repayment, the annuitant's automatic annual increase shall resume at the rate of increase equivalent to a comparable annuitant whose automatic annual increase was not discontinued. Removes language that provides that if (1) the amount of the benefit was mistakenly set too high, (2) the error was undiscovered for 3 years or longer from the date of the first mistaken benefit payment, and (3) the error was not the result of incorrect information supplied by the affected member, then upon discovery of the mistake the benefit shall be adjusted to the correct level, but the recipient of the benefit shall not be required to repay to the Fund the excess amounts received in error. Effective immediately or on the date Article 20 of Senate Bill 1056 takes effect, whichever is later.
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FISCAL NOTE ACT MAY APPLY PENSION IMPACT NOTE ACT MAY APPLY STATE MANDATES ACT MAY REQUIRE REIMBURSEMENT
A BILL FOR
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AN ACT concerning public employee benefits.
Be it enacted by the People of the State of Illinois,
represented in the General Assembly:
Section 5. If and only if Senate Bill 1056 of the 102nd
General Assembly, as amended by House Amendment 1, becomes
law, then the Illinois Pension Code is amended by changing
Section 17-151.1 as follows:
(40 ILCS 5/17-151.1)
Sec. 17-151.1. Recovery of amount paid in error.
(a) The Board may retain out of any annuity or benefit
payable to any person any amount that the Board determines is
owing to the Fund because (i) required employee contributions
were not made in whole or in part, (ii) employee or member
obligations to return refunds were not met, or (iii) money was
paid to any employee, member, or annuitant through
misrepresentation, fraud, or error.
If the Fund mistakenly sets any benefit at an incorrect
amount, the Fund shall recalculate the benefit as soon as may
be practicable after the mistake is discovered. The Fund shall
provide the recipient, or the survivor or beneficiary of the
recipient, as the case may be, with at least 60 days' notice of
the corrected amount.
If the benefit was mistakenly set too low, the Fund shall

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make a lump sum payment to the recipient, or the survivor or
beneficiary of the recipient, as the case may be, of an amount
equal to the difference between the benefits that should have
been paid and those actually paid, plus interest at the rate of
3% from the date the unpaid amounts accrued to the date of
payment.
If the benefit was mistakenly set too high, the Fund may
recover the amount overpaid from the recipient, or the
survivor or beneficiary of the recipient, as the case may be,
plus interest at 3% from the date of overpayment to the date of
recovery. The recipient, or the survivor or beneficiary of the
recipient, as the case may be, may elect to repay the sum owed
either directly by a lump sum payment, in agreed-upon monthly
payments over a period not to exceed 5 years, or through an
actuarial equivalent reduction of the corrected benefit. If
the annuitant does not elect to repay the sum owed directly by
a lump sum payment, in agreed-upon monthly payments, or
through an actuarial equivalent reduction of the corrected
benefit, the annuitant may have his or her automatic annual
increase discontinued beginning in January of the following
calendar year until the pension payment matches his or her
corrected pension rate. Upon full repayment, the annuitant's
automatic annual increase shall resume at the rate of increase
equivalent to a comparable annuitant whose automatic annual
increase was not discontinued. However, if (1) the amount of
the benefit was mistakenly set too high, (2) the error was

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undiscovered for 3 years or longer from the date of the first
mistaken benefit payment, and (3) the error was not the result
of incorrect information supplied by the affected member, then
upon discovery of the mistake the benefit shall be adjusted to
the correct level, but the recipient of the benefit shall not
be required to repay to the Fund the excess amounts received in
error.
(b) The Board and the Fund shall be held free from any
liability for any money retained or paid in accordance with
this Section, and the employee, member, or pensioner shall be
assumed to have assented and agreed to the disposition of
money due.
(c) The changes made by this amendatory Act of the 94th
General Assembly are not limited to persons in service on or
after the effective date of this amendatory Act.
(Source: P.A. 94-425, eff. 8-2-05; 10200SB1056ham001.)
Section 99. Effective date. This Act takes effect upon
becoming law or on the date that Article 20 of Senate Bill 1056
of the 102nd General Assembly takes effect, whichever is
later.