Illinois Administrative Code › Title 80 - PUBLIC OFFICIALS AND EMPLOYEES › Part 1600 - UNIVERSITIES RETIREMENT › Subpart D - BENEFIT CALCULATION AND PAYMENT › Section 1600.450 - Overpayment Recovery

Current through Register Vol. 48, No. 28, July 12, 2024
Purpose. Under Section 15-186.1 of the Code, SURS may recover
				  amounts overpaid from the recipient and/or the recipient's estate
				  (collectively, "recipient"), plus interest at the effective rate from the date
				  of overpayment to the date of recovery, either directly or by deducting that
				  amount from the remaining benefits payable to the recipient at a rate
				  determined prudent and in the best interests of the System. This Section
				  establishes procedures by which SURS' authority to collect overpayments under
				  Section 15-186.1 is to be exercised.
a)
				Demand and Statements. SURS will provide the overpaid recipient with a written
				demand upon discovery of the overpayment. The written demand shall specify the
				total amount of the overpayment, the month or months in which the overpayment
				occurred, a description of the nature of the overpayment, the interest rate to
				be assessed, and the option for installment payments or deduction from future
				benefits. The written demand shall also notify the recipient of the right to
				appeal and receive a hearing concerning the determination of overpayment status
				in accordance with Section
				1600.500. SURS will send the
				recipient monthly statements indicating the overpayment balance and any
				installment balances and shall continue sending monthly statements until the
				total amount is fully repaid or SURS acts under subsection (c).
b) Interest. Interest will compound monthly
				at 1/12 the current effective rate of interest per month starting 35 days after
				the date of issuance of the written demand until collection is completed.
				Notwithstanding the foregoing, interest accrual shall be suspended during the
				pendency of a request for review of the overpayment under Section 1600.500.
				However, if the recipient does not prevail under administrative review,
				interest shall apply retroactively to the date 35 days after the date of
				issuance of the written demand until collection is completed.
c) Actions for Recovery. If the recipient has
				not begun repayment or has not filed an appeal within 35 days after the written
				demand, or a final non-appealable decision in favor of SURS issued subsequent
				to an appeal, SURS may take any, or any combination, of the following actions,
				as SURS deems appropriate and prudent, to collect the overpayment:
1) Deduct from benefits, refunds and credits
				payable to the recipient. Under Section 15-185 of the Code, the Board may
				deduct from any benefit payable to participants, annuitants, survivors and
				beneficiaries amounts owed to SURS due to the participant's service. SURS may
				recover overpayments from any benefit payable due to the participant's service,
				including annuity benefits, survivor benefits, separation refunds, disability
				benefits and death benefits. If anyone receiving a benefit due to the
				participant's service is overpaid, the overpayment may be recovered from any
				current or future benefits paid to the same person or any other person
				receiving benefits due to the participant's service;
2) Engage a private collections
				agent;
3) Initiate proceedings to
				obtain a civil judgment by attorneys retained by SURS or through the Attorney
				General;
4) Refer the overpayment
				to the Debt Collection Bureau of the Illinois Department of Revenue and/or the
				Illinois Debt Recovery Offset Portal (IDROP) of the Illinois State
				Comptroller;
5) Coordinate
				collection efforts with the State of Illinois Treasurer's Office;
				and/or
6) By and through any other
				means permissible by law.