Board Resolution 2018-02-10(a)-1

Meeting room

Topic: Plan Administration
Subtopic: Individual Representatives
Date: 2/23/2018
Status: Active

WHEREAS, Section 7-217 of the Illinois Pension Code allows the Board in its discretion to pay benefits for a minor or incompetent person to a representative payee assuming responsibility for such minor or incompetent person, and to waive guardianship or conservatorship; and

WHEREAS, it is anticipated that the requests will be made for payment to representative payees for incompetent annuitants and for minors and incompetents who are entitled to death benefits; and

WHEREAS, rules and regulations should be adopted for the direction of the staff;

NOW, THEREFORE, BE IT RESOLVED that the following rules and regulations in respect to payment to representative payees for incompetent annuitants be adopted:

  1. A representative payee shall be a person assuming responsibility for an annuitant.
  2. The following shall qualify as representative payees: spouse, brother, sister, child, aunt, uncle, niece, nephew, and appropriate official of a hospital, home or institution.
  3. A person seeking to be a representative payee shall be required to file an application on forms provided by the Fund.
  4. The application process for representative payee shall include a physician’s certificate of incompetence in form and substance satisfactory to the Executive Director.
  5. Each representative payee shall be required to agree that, upon the request of the Board of Trustees, he will file a statement of expenditures made for the benefit and use of the incompetent annuitant from the proceeds of funds received by him.
  6. If payments to a representative payee continue for an indefinite period, staff may order a field investigation as necessary to determine whether or not the funds are being made to the benefit and use of the incompetent annuitant and whether or not s/he is still living.

RESOLVED THAT the following rules and regulation in respect to payments of death benefits to representative payees shall be adopted

  1. The representative payee shall be a person assuming responsibility for a minor or incompetent.
  2. The parent of a minor shall qualify as a representative payee and if the minor has no living parent or good cause is shown why a living parent should not be the representative payee, then a grandparent, brother, sister, uncle or aunt of the minor shall qualify as a representative payee.
  3. The following shall qualify as representative payees of an incompetent: spouse, brother, sister, child, aunt, uncle, niece, nephew, and appropriate official of a hospital, home or institution.
  4. A person seeking to be a representative payee shall be required to file an application on forms provided by the Fund. The application process for representative payee on behalf of an incompetent shall include a physician’s certificate of incompetence in form and substance satisfactory to the Executive Director.
  5. A death benefit up to and including the amount of $25,000 shall be payable to a representative payee, unless the representative payee is the natural or adoptive parent of a minor, in which case payment is allowed up to and including $50,000.
  6. The representative payee shall be required to agree that, upon request of the Board of Trustees, he will file a report or reports setting forth the expenditure of death benefit payments made to him.