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:
- A representative payee shall be a person assuming responsibility for an annuitant.
- The following shall qualify as representative payees: spouse, brother, sister, child, aunt, uncle, niece, nephew, and appropriate official of a hospital, home or institution.
- 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 shall include a physician’s certificate of incompetence in form and substance satisfactory to the Executive Director.
- 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.
- 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
- The representative payee shall be a person assuming responsibility for a minor or incompetent.
- 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.
- 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.
- 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.
- 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.
- 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.