Illinois General Assembly - Full Text of HB0425
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Full Text of HB0425  102nd General Assembly




HB0425 EngrossedLRB102 05183 RPS 15204 b

1    AN ACT concerning public employee benefits.
2    Be it enacted by the People of the State of Illinois,
3represented in the General Assembly:
4    Section 5. The Illinois Pension Code is amended by
5changing Section 5-163 as follows:
6    (40 ILCS 5/5-163)  (from Ch. 108 1/2, par. 5-163)
7    Sec. 5-163. Refund - General.
8    (a) A policeman, without regard to his period of service,
9who withdraws before age 50, and a policeman with less than 10
10years of service who withdraws before age 57, is entitled to a
11refund of the amount deducted from his salary for age and
12service annuity or Tier 2 monthly retirement annuity, for
13automatic annual increase in annuity as provided in Section
145-167.1, and for widow's annuity or Tier 2 surviving spouse's
15annuity, together with interest at 1-1/2% per year on each
16deduction from the date of each deduction until the date of his
17withdrawal from the service.
18    (b) Any refund under this Article shall be calculated
19based on the policeman's contributions to the fund, less the
20amount of any annuity benefit previously received by the
21policeman and his beneficiaries. A policeman shall have no
22such right of refund if the sum of the annuity benefits the
23policeman and his beneficiaries have received exceeds the sum



HB0425 Engrossed- 2 -LRB102 05183 RPS 15204 b

1to which the policeman has contributed to the fund. A
2policeman may receive a refund until the annuity to which he is
3entitled has been fixed. Thereafter, he shall have no such
4right of refund.
5    (c) A policeman who withdraws the amount credited to him
6surrenders and forfeits all rights to any annuity or other
7benefit from the fund, for himself and for any other person or
8persons who might otherwise have benefited through him. The
9rights so forfeited shall be restored to him, his wife or widow
10and his children upon full repayment as provided in Section
12    If the policeman subsequently re-enters service before age
1357, and has not so repaid in full the amounts refunded the
14rights forfeited shall not be restored, but the policeman
15shall retain the right (which is also secured to the widow) to
16have the period of service represented by the refunds counted
17in the compensation of length of service, except as otherwise
18provided in Section 5-164.
19    (d) A policeman who has served less than 10 years who has
20not received a refund shall have all amounts to his credit for
21purposes on the date of his withdrawal improved by interest
22while he is out of service until he attains age 57, if he
23subsequently re-enters the service and attains a right to
25    (e) If a policeman elects to make additional contribution
26for past service as provided in Section 5-174 and fails to pay



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1such contributions in full within the time specified in said
2section, a refund of the amount so paid, with interest at
31-1/2% per year, compounded annually, shall be refunded as
4provided in said section.
5    (f) If a policeman makes contributions in accordance with
6the provisions of Section 5-174(b) and subsequently returns to
7the position he holds by certification and appointment as the
8result of competitive civil service examination, he shall
9receive a refund of such contributions, upon application
10therefor, together with interest at 1-1/2% per year on each
11such deduction from the date it was made to the date of refund.
12Application for refund must be made before the annuity to
13which he has a right has been fixed.
14(Source: P.A. 99-905, eff. 11-29-16.)
15    Section 90. The State Mandates Act is amended by adding
16Section 8.45 as follows:
17    (30 ILCS 805/8.45 new)
18    Sec. 8.45. Exempt mandate. Notwithstanding Sections 6 and
198 of this Act, no reimbursement by the State is required for
20the implementation of any mandate created by this amendatory
21Act of the 102nd General Assembly.