SB3309 Summary

• Establishes procedures for correcting mistakes in benefit calculations across multiple Illinois pension systems, requiring systems to recalculate and adjust benefits to correct amounts as soon as practicable after discovery.

• Requires lump sum payments to recipients when benefits are mistakenly set too low, including the difference between amounts that should have been paid and amounts actually paid.

• Permits recovery of overpayments when benefits are mistakenly set too high, either through direct payment or by deducting up to 10% of the corrected monthly benefit from remaining payments, unless the recipient requests otherwise.

• Shields recipients from repaying overpayments if the error went undiscovered for 3 years or longer and was not caused by fraud or incorrect information provided by the recipient.

• Requires actuarial tables be used consistently to determine all benefit amounts and optional benefit forms, and makes participant interests nonforfeitable upon plan termination.