Illinois Administrative Code › Title 80 - PUBLIC OFFICIALS AND EMPLOYEES › Part 1540 - THE ADMINISTRATION AND OPERATION OF THE STATE EMPLOYEES' RETIREMENT SYSTEM OF ILLINOIS › Section 1540.90 - Benefit Offset

Current through Register Vol. 48, No. 28, July 12, 2024
a) Occupational
			 Disability, Occupational Death, and Survivor's annuity
Any amounts received under the Workers' Compensation Act [820
				ILCS 305 ] or the Workers' Occupational Diseases Act [820 ILCS 310 ] as
				compensation for the disability or death of a member shall be applied, for the
				period of time prescribed by those Acts for payments, as an offset against any
				occupational disability benefit, occupational death benefit, or survivor's
				annuity provided under Article 14 of the Illinois Pension Code [40 ILCS 5 ] for
				that disability or death, as follows:
1) If the amount of compensation received
			 under the Workers' Compensation Act or the Workers' Occupational Diseases Act
			 for a month is less than the occupational disability, occupational death
			 benefit, or survivor's annuity provided under Article 14 of the Illinois
			 Pension Code for that month, then only the amount of the monthly occupational
			 disability, occupational death benefit, or survivor's annuity that exceeds the
			 monthly compensation received under the Workers' Compensation Act or the
			 Workers' Occupational Diseases Act shall be payable by the Retirement System,
			 subject, in the case of occupational death, to any minimum benefit provided by
			 Sections 14-103.18 and 14-121(h) of the Pension Code. If the amount of
			 compensation received under the Workers' Compensation Act or the Workers'
			 Occupational Diseases Act for a month equals or exceeds the monthly
			 occupational disability or death benefit provided under Article 14 of the
			 Pension Code, then no benefit shall be payable by the Retirement System for
			 that month.
2) If the compensation
			 for disability or death is received in a lump sum, or partly in a lump sum and
			 partly in monthly or weekly sums, and if a period of time is not prescribed for
			 payment of that compensation by the Workers' Compensation Act or the Workers'
			 Occupational Diseases Act, then the Retirement System shall, for offset
			 purposes, consider the compensation as if it had been paid using the average
			 weekly wage as prescribed under those Acts. Salary or wages paid on or after
			 the date of the member's disability shall not be included in the amount to be
			 offset under this subsection against benefits payable under Article 14 of the
			 Illinois Pension Code on account of the member's service.
3) In the event the whole or any part of the
			 benefits received under the Workers' Compensation Act or Workers' Occupational
			 Diseases Act is commuted into one sum, the aggregate sum of the benefits so
			 commuted and not the commuted value thereof shall be used for purposes of
			 ascertaining the amount of the offset under this subsection.
4) No offset shall be applied under this
			 subsection against the member's retirement annuity.
5) The offset described in this subsection
			 shall be reduced by any legal expenses granted in the award.
6) The offset described in this subsection
			 shall be reduced by amounts received or paid under the Workers' Compensation
			 Act or Workers' Occupational Diseases Act for medical, hospital, or burial
			 expenses, provided that, in the case of medical and hospital expenses, the
			 expenses are incurred before either a final determination is made on the
			 member's claim by the Illinois Workers' Compensation Commission or the member's
			 claim is otherwise settled.
7) That
			 portion of the occupational death benefit consisting of accumulated
			 contributions of a member shall not be subject to any offset mentioned in this
			 Section.
8) The termination of
			 death benefits under the Workers' Compensation Act or Workers' Occupational
			 Diseases Act due to remarriage of the benefit recipient shall cause the offset
			 to the Occupational Death Benefit applicable to the remarried benefit recipient
			 to terminate effective with the last month of eligibility represented in the
			 final benefit payment under the Workers' Compensation Act or Workers'
			 Occupational Diseases Act.
9) In
			 those cases in which the injury or death, for which an occupational disability,
			 occupational death benefit, or survivor's annuity is payable, creates a legal
			 liability for damages on the part of some person other than the employer to pay
			 damages, the Workers' Compensation offset shall be applied as follows:
A) Any amounts paid under the Workers'
			 Compensation Act or Workers' Occupational Diseases Act are subject to the
			 offset provisions of Article 14 of the Pension Code and this Part, even though
			 those amounts are recoverable under Section 5(b) of the Workers' Compensation
			 Act (subrogation).
B) In the event
			 that benefits due under the Workers' Compensation Act or Workers' Occupational
			 Diseases Act are commuted into one sum or waived in lieu of the member seeking
			 recovery against a third party, the System shall use the amount of any
			 judgment, settlement or payment for the injury by the third party as a credit
			 against any benefits paid or payable by the System.
10) Any periods of disability for which
			 payment under the Workers' Compensation Act is denied, due to the failure of
			 the individual to comply with that Act, that result in a period of
			 noncompensability under the Workers' Compensation Act will not be considered
			 for Occupational Disability until the entire Workers' Compensation case has
			 been finalized through the Illinois Workers' Compensation Commission.