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1 | AN ACT concerning public employee benefits.
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2 | Be it enacted by the People of the State of Illinois,
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3 | represented in the General Assembly:
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4 | Section 5. The Illinois Pension Code is amended by changing | ||||||
5 | Section 14-130 as follows:
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6 | (40 ILCS 5/14-130) (from Ch. 108 1/2, par. 14-130)
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7 | Sec. 14-130. Refunds; rules.
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8 | (a) Upon withdrawal a member is entitled to receive, upon | ||||||
9 | written
request, a refund of the member's contributions, | ||||||
10 | including credits granted
while in receipt of disability | ||||||
11 | benefits, without credited interest. The
board, in its | ||||||
12 | discretion may withhold payment of the refund of a member's
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13 | contributions for a period not to exceed 1 year after the | ||||||
14 | member has ceased
to be an employee.
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15 | For purposes of this Section, a member will be considered | ||||||
16 | to have
withdrawn from service if a change in, or transfer of, | ||||||
17 | his position
results in his becoming ineligible for continued | ||||||
18 | membership in this
System and eligible for membership in | ||||||
19 | another public retirement system
under this Act.
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20 | (b) A member receiving a refund forfeits and relinquishes | ||||||
21 | all
accrued rights in the System, including all accumulated | ||||||
22 | creditable
service. If the person again becomes a member of the | ||||||
23 | System and
establishes at least 2 years of creditable service, | ||||||
24 | the member may repay
all the moneys previously refunded or a | ||||||
25 | portion of the moneys previously refunded representing | ||||||
26 | contributions for one or more whole months of creditable | ||||||
27 | service. If a member repays a portion of moneys previously | ||||||
28 | refunded, he or she may later repay some or all of the | ||||||
29 | remaining portion of those previously refunded moneys . | ||||||
30 | However, a former member may restore
credits previously | ||||||
31 | forfeited by acceptance of a refund without returning to
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32 | service by applying in writing and repaying to the System, by |
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1 | April 1,
1993, the amount of the refund plus regular interest | ||||||
2 | calculated from the
date of refund to the date of repayment.
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3 | The repayment of refunds issued prior to January 1, 1984 | ||||||
4 | shall consist
of the amount refunded plus 5% interest per annum | ||||||
5 | compounded annually for
the period from the date of the refund | ||||||
6 | to the end of the month in which
repayment is made. The | ||||||
7 | repayment of refunds issued after January 1, 1984
shall consist | ||||||
8 | of the amount refunded plus regular interest for the period
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9 | from the date of refund to the end of the month in which | ||||||
10 | repayment is made.
The repayment of the refund of a person who | ||||||
11 | accepts an alternative retirement cancellation payment under | ||||||
12 | Section 14-108.5 shall consist of the entire amount paid to the | ||||||
13 | person under subsection (c) of Section 14-108.5 plus regular | ||||||
14 | interest for the period from the date of the refund to the end | ||||||
15 | of the month in which repayment is made. However, in the case | ||||||
16 | of a refund that is repaid in a lump sum between
January 1, | ||||||
17 | 1991 and July 1, 1991, repayment shall consist of the amount
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18 | refunded plus interest at the rate of 2.5% per annum compounded | ||||||
19 | annually
from the date of the refund to the end of the month in | ||||||
20 | which repayment is made.
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21 | Upon repayment, the member shall receive credit for the
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22 | service for which the refund has been repaid, and the | ||||||
23 | corresponding , member contributions and regular interest that | ||||||
24 | was forfeited by
acceptance of the refund , as well as regular | ||||||
25 | interest for the period of
non-membership. Such repayment shall | ||||||
26 | be made in full before retirement
either in a lump sum or in | ||||||
27 | installment payments in accordance with such
rules as may be | ||||||
28 | adopted by the board.
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29 | (b-5) The Board may adopt rules governing the repayment of | ||||||
30 | refunds
and establishment of credits in cases involving awards | ||||||
31 | of back pay or
reinstatement. The rules may authorize repayment | ||||||
32 | of a refund in installment
payments and may waive the payment | ||||||
33 | of interest on refund amounts repaid in
full within a specified | ||||||
34 | period.
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35 | (c) A member no longer in service who is unmarried and does | ||||||
36 | not have an eligible survivors annuity
beneficiary on the date |
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1 | of application therefor is
entitled to a refund of | ||||||
2 | contributions for widow's annuity or survivors
annuity | ||||||
3 | purposes, or both, as the case may be, without interest. A | ||||||
4 | widow's
annuity or survivors annuity shall not be payable upon | ||||||
5 | the death of a person
who has received this refund, unless | ||||||
6 | prior to that death the amount of the
refund has been repaid to | ||||||
7 | the System, together with regular interest from the
date of the | ||||||
8 | refund to the date of repayment.
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9 | (d) Any member who has service credit in any position for | ||||||
10 | which an
alternative retirement annuity is provided and in | ||||||
11 | relation to which an
increase in the rate of employee | ||||||
12 | contribution is required, shall be
entitled to a refund, | ||||||
13 | without interest, of that part of the member's
employee | ||||||
14 | contribution which results from that increase in the employee
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15 | rate if the member does not qualify for that alternative | ||||||
16 | retirement
annuity at the time of retirement.
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17 | (Source: P.A. 93-839, eff. 7-30-04.)
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18 | Section 99. Effective date. This Act takes effect upon | ||||||
19 | becoming law.
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