Illinois Official Reports
Appellate Court
Wright v. Board of Trustees, State Universities Retirement System,
2014 IL App (4th) 130719
Appellate Court CHERYL WRIGHT, Plaintiff-Appellant, v. THE BOARD OF
Caption TRUSTEES, STATE UNIVERSITIES RETIREMENT SYSTEM OF
ILLINOIS, Defendant-Appellee.
District & No. Fourth District
Docket No. 4-13-0719
Rule 23 Order filed April 29, 2014
Rule 23 Order
withdrawn May 22, 2014
Opinion filed May 22, 2014
Held Where the State Universities Retirement System determined that
(Note: This syllabus plaintiff received disability benefits from the retirement system and a
constitutes no part of the workers’ compensation award for the same disability covering the
opinion of the court but same period of time, the retirement system was entitled to offset the
has been prepared by the total amount of the workers’ compensation award, regardless of the
Reporter of Decisions actual date that the workers’ compensation award was paid.
for the convenience of
the reader.)
Decision Under Appeal from the Circuit Court of Champaign County, No.
Review 12-MR-546; the Hon. Thomas J. Difanis, Judge, presiding.
Judgment Affirmed.
Counsel on Gene A. Turk, Jr. (argued), of Law Office of Gene Turk, of
Appeal Carbondale, for appellant.
John M. Sturmanis, of Thomas, Mamer & Haughey, LLP, and
Michael B. Weinstein (argued), Special Assistant Attorney General,
of State Universities Retirement System, both of Champaign, for
appellee.
Panel JUSTICE POPE delivered the judgment of the court, with opinion.
Justices Holder White and Steigmann concurred in the judgment and
opinion.
OPINION
¶1 In July 2007, plaintiff, Cheryl Wright, was awarded disability benefits by the State
Universities Retirement System of Illinois (SURS) retroactive to December 23, 2006, based on
a July 2006 disability date. In March 2011, SURS staff notified Wright by letter she owed
$51,413.62 (after SURS withheld her February 2011 disability payment of $1,687.96) based
on a workers’ compensation award she received. Wright sought administrative review.
¶2 In February 2012, the Claims Panel of SURS issued a written opinion upholding the SURS
staff’s determination. In June 2012, the Executive Committee of the Board of Trustees of
SURS (Executive Committee) issued a final administrative decision adopting the Claims
Panel’s determination in its entirety. In July 2013, the circuit court affirmed the decision of the
Executive Committee.
¶3 Wright appeals, asserting her workers’ compensation award was not paid until January 11,
2011 (180 days after its July 15, 2010, approval), and, thus, the offset should apply only to
SURS benefits received after that date, resulting in a $2,185.25 offset.
¶4 I. BACKGROUND
¶5 In January 2007, Wright filed an application for disability benefits with SURS as the result
of an on-the-job accident, noting a disability date of July 2006. In July 2007, SURS notified
Wright by letter she would begin receiving $1,791.93-per-month disability benefits retroactive
to December 23, 2006. The letter contained the following notice:
“If you qualify for benefits under any State or Federal Workers’ Compensation or
Occupational Diseases Acts for any period for which disability benefits are payable by
SURS, the disability benefit paid by SURS will be reduced by an amount equivalent to
such Workers’ Compensation or Occupational Diseases payment.”
¶6 After being advised Wright received a $53,101.58 workers’ compensation settlement in
case Nos. 07-WC-9038, 07-WC-10331, and 07-WC-10390 (after attorney fees, costs, and
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medical expenses had been subtracted), SURS staff sent Wright a letter in March 2011
informing her it was “entitled to offset disability benefits when an employee receives benefits
under the State Workers’ Compensation or Diseases Act.” The letter noted Wright’s temporary
total disability (TTD) payments ended February 23, 2007. Thus, the SURS offset began
February 24, 2007, and continued through her final permanent partial disability (PPD)
payment on May 22, 2010, for a total of 168.50 weeks (38.88 months) at $1,365.78 per month,
or a total offset of $53,101.58. We note the workers’ compensation settlement agreement states
the PPD award is equal to 158.50 weeks, apparently a typographical error. SURS withheld
Wright’s February 2011 disability payment ($1,687.96), leaving a balance of $51,413.62 owed
to SURS.
¶7 Wright responded to SURS’s letter, asserting she was not responsible for the offset amount
because her workers’ compensation settlement held her harmless for any subrogation. In April
2011, SURS staff responded by letter notifying Wright the subrogation clause in her workers’
compensation settlement did not apply to the disability benefits she received from SURS and
demanded payment. Wright petitioned for review before the SURS Claims Panel, asserting (1)
the State of Illinois agreed to hold her harmless for any claim such as this and (2) her workers’
compensation award was limited to PPD and she received nothing for TTD for the time frame
alleged by SURS.
¶8 In October 2011, a hearing was conducted before the Claims Panel, resulting in a February
2012 written decision. At the hearing, according to the Claims Panel’s decision (the record
does not contain a transcript of this hearing), counsel for Wright argued (1) the workers’
compensation offset should begin in September 2010, when the settlement contract was
approved by the workers’ compensation arbitrator (the agreement was actually approved on
July 15, 2010); or (2) alternatively, the offset should begin 180 days after the settlement was
approved because that was when the settlement was actually paid. The Claims Panel noted as
follows:
“It has long been established before the Illinois Workers’ Compensation Commission
that permanent partial disability benefits begin to accrue immediately after the period
of temporary total disability ends. Arbitration and Commission decisions before the
Illinois Workers’ Compensation Commission have historically ordered that permanent
partial disability benefits begin to accrue the day following the point at which the
claimant is no longer temporary totally disabled.”
The Claims Panel found SURS staff had properly calculated the $53,101.58 offset, noting “it is
apparent that the claimant did receive duplicate payments of both SURS disability benefits and
Illinois Workers’ Compensation permanent partial disability benefits covering the same dates,
i.e., February 24, 2007[,] through February 28, 2011.” (Wright retired in February 2011 and
began receiving retirement benefits, thus terminating her disability payments.) Because SURS
did not pay Wright her February 2011 disability benefits, the amount of the offset was reduced
to $51,413.62. While the decision incorrectly states Wright’s PPD benefits covered through
February 28, 2011, in fact, based on SURS staff’s calculation, Wright’s PPD benefit period
ended on May 22, 2010.
¶9 In June 2012, the Executive Committee issued a final administrative decision adopting the
Claims Panel’s determination in its entirety. In July 2012, Wright filed a complaint for
administrative review with the circuit court.
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¶ 10 In July 2013, following a hearing on the matter, the circuit court affirmed the decision of
the Executive Committee.
¶ 11 This appeal followed.
¶ 12 II. ANALYSIS
¶ 13 On appeal, Wright asserts because her workers’ compensation award was not paid until
January 11, 2011 (180 days after its July 15, 2010, approval), the offset should apply only to
SURS benefits received after that date, resulting in a $2,185.25 offset.
¶ 14 A. Standard of Review
¶ 15 The Administrative Review Law (735 ILCS 5/3-101 to 3-113 (West 2010)) applies to all
proceedings for judicial review of the final administrative decisions of the Board of Trustees
(Board) of SURS. 40 ILCS 5/15-188 (West 2010). We review the administrative agency’s
decision rather than the judgment of the circuit court. Marconi v. Chicago Heights Police
Pension Board, 225 Ill. 2d 497, 531, 870 N.E.2d 273, 292 (2006).
“The applicable standard of review–which determines the extent of deference
afforded to the administrative agency’s decision–depends upon whether the question
presented is a question of fact, a question of law, or a mixed question of law and fact.
[Citations.] Rulings on questions of fact will be reversed only if against the manifest
weight of the evidence. [Citation.] In contrast, questions of law are reviewed de novo
[citation], and a mixed question of law and fact is reviewed under the clearly erroneous
standard [citations].” Id. at 532, 870 N.E.2d at 292-93.
¶ 16 The parties disagree on the appropriate standard of review in this case. Wright asserts
because the question before us involves the interpretation of a statute, i.e., what “payable”
means, the de novo standard of review applies. SURS contends the primary question is a
factual one, i.e., whether the record supports the Executive Committee’s application of the
offset statute based on the factual determination Wright received workers’ compensation
benefits during the same period she received SURS disability benefits. Because the resolution
of this case turns on the meaning of the term “payable,” we review this issue de novo.
¶ 17 B. The Offset Period
¶ 18 Section 15-153.1(c) of the Illinois Pension Code provides, in part, as follows:
“In determining the monthly benefits payable under this Article, a deduction shall be
made equivalent to any benefits payable to any employee under any State or Federal
Worker’s Compensation or Occupational Diseases Acts for any period for which
disability benefits are payable.” (Emphases added.) 40 ILCS 5/15-153.1(c) (West
2010).
The workers’ compensation settlement provided as follows: “All parties agree that payment of
the settlement is deferred until after 180 days from the approval date of this contract.” Based on
this language, Wright asserts her workers’ compensation award did not become payable until
January 11, 2011 (180 days after the July 15, 2010, approval of the award), and thus, the offset
should apply only to SURS disability benefits received after that date. (We note the Claims
Panel’s decision erroneously states the workers’ compensation settlement agreement was
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approved by the arbitrator in September 2010; it was actually approved in July 2010.) SURS
disagrees, contending the actual date the payment was made is irrelevant.
¶ 19 “The cardinal rule of statutory construction is to ascertain and give effect to the
legislature’s intent, and the plain language of the statute is the best indication of that intent.”
People v. Martin, 2011 IL 109102, ¶ 21, 955 N.E.2d 1058. “We will not depart from the plain
language of the statute by reading into it exceptions, limitations, or conditions that conflict
with the express legislative intent.” People v. Boclair, 202 Ill. 2d 89, 100, 789 N.E.2d 734, 741
(2002).
¶ 20 Wright urges this court to interpret the term “payable” in the offset statute to mean the date
the payment is actually received. However, such an interpretation would defeat the purpose of
the statute, i.e., to prevent a SURS participant from receiving both SURS disability benefits
and a workers’ compensation award for dates covering the same period of time. See Taylor v.
State Universities Retirement System, 203 Ill. App. 3d 513, 522, 560 N.E.2d 893, 899 (1990)
(“The purpose of [the offset statute] is to prevent SURS participants from obtaining double
recoveries of disability benefits [citation] and to facilitate recoupment of SURS disability
benefits to the extent a SURS participant is eligible for workers’ compensation or occupational
diseases benefits for a period of time for which he or she received SURS benefits.”). Further,
statutes are to be construed to avoid absurd results. People v. Hanna, 207 Ill. 2d 486, 498, 800
N.E.2d 1201, 1207-08 (2003).
¶ 21 In almost any situation this court can envision, disability benefits will be paid long before a
workers’ compensation award is issued. If this court were to interpret the offset statute as
Wright suggests, SURS participants would need only delay actual receipt of any workers’
compensation award to avoid reimbursing SURS for any offset. Surely this was not the intent
of the legislature. The actual date a workers’ compensation award is paid is irrelevant. What is
relevant is whether the workers’ compensation award is being issued for the same period of
time for which the SURS participant also received disability benefits.
¶ 22 In this case, Wright received SURS disability benefits retroactive to December 23, 2006, in
the amount of $1,791.93 per month. On February 23, 2007, Wright’s TTD benefits expired.
Thus, it follows that any permanent partial disability Wright suffered was present the day after
she was no longer temporarily totally disabled–either she was permanently partially disabled
or she was not. The fact a PPD determination was not made until later is irrelevant. Based on
the workers’ compensation settlement agreement, Wright agreed to a lump-sum settlement of
$53,101.58 (after attorney fees, costs, and medical expenses had been subtracted), representing
22.5% of each leg (48.375 weeks for each leg) and 17.5% for each hand (35.875 weeks per
hand) for a total of 168.50 weeks. It is of no consequence the workers’ compensation
settlement agreement was not approved by the arbitrator until July 15, 2010, or paid to Wright
until January 11, 2011.
¶ 23 Wright cites National Manufacturing v. Industrial Comm’n, 331 Ill. App. 3d 1045, 1048,
780 N.E.2d 703, 706 (2002), for the proposition PPD benefits do not accrue unless and until an
arbitrator has entered an award. However, the issue in National Manufacturing was whether a
penalty imposed under section 19(k) of the Workers’ Compensation Act (820 ILCS 305/19(k)
(West 1994)) against an employer for unreasonably withholding payment of TTD benefits
should also apply to the PPD award–which was not entered until the time the penalty was
imposed–as “ ‘the amount payable at the time of the award.’ ” National Manufacturing, 311
Ill. App. 3d at 1047, 780 N.E.2d at 705. The court found the penalty should not have included
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PPD benefits because they had not “accrued” at the time of the penalty hearing. Id. at 1048,
780 N.E.2d at 706. The National Manufacturing court used the term “accrue” to denote the
payments that had been unreasonably withheld by the employer, which logically could not
include the recently awarded PPD benefit. Here, however, we are not concerned with whether
a penalty should be imposed on an employer for failing to pay a recently awarded PPD benefit.
Rather, the issue before us is whether a SURS participant is required to reimburse SURS for
benefits she received for the same period of time her workers’ compensation award was also
payable.
¶ 24 In this case, SURS determined Wright received both disability benefits from SURS and a
workers’ compensation award covering the same period of time. Because Wright does not take
issue with the formula SURS used to calculate the offset amount, and because we hold the
actual date the workers’ compensation award was paid is irrelevant, SURS is entitled to an
offset amount of $53,101.58. Because SURS already withheld $1,687.96, Wright must
reimburse SURS $51,413.62.
¶ 25 III. CONCLUSION
¶ 26 For the reasons stated, we affirm the Executive Committee’s decision.
¶ 27 Affirmed.
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