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90_HB2393
40 ILCS 5/14-130 from Ch. 108 1/2, par. 14-130
Amends the State Employee Article of the Pension Code.
Reduces the interest rate charged to persons repaying a
refund, for certain refunds repaid between July 1, 1998 and
July 1, 1999. Effective immediately.
LRB9007504EGfgA
LRB9007504EGfgA
1 AN ACT to amend the Illinois Pension Code by changing
2 Section 14-130.
3 Be it enacted by the People of the State of Illinois,
4 represented in the General Assembly:
5 Section 5. The Illinois Pension Code is amended by
6 changing Section 14-130 as follows:
7 (40 ILCS 5/14-130) (from Ch. 108 1/2, par. 14-130)
8 Sec. 14-130. Refunds; rules.
9 (a) Upon withdrawal a member is entitled to receive,
10 upon written request, a refund of the member's contributions,
11 including credits granted while in receipt of disability
12 benefits, without credited interest. The board, in its
13 discretion may withhold payment of the refund of a member's
14 contributions for a period not to exceed one 1 year after the
15 member has ceased to be an employee.
16 For purposes of this Section, a member will be considered
17 to have withdrawn from service if a change in, or transfer
18 of, his position results in his becoming ineligible for
19 continued membership in this System and eligible for
20 membership in another public retirement system under this
21 Act.
22 (b) A member receiving a refund forfeits and
23 relinquishes all accrued rights in the System, including all
24 accumulated creditable service. If the person again becomes
25 a member of the System and establishes at least 2 years of
26 creditable service, the member may repay the moneys
27 previously refunded. However, a former member may restore
28 credits previously forfeited by acceptance of a refund
29 without returning to service by applying in writing and
30 repaying to the System, by April 1, 1993, the amount of the
31 refund plus regular interest calculated from the date of
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1 refund to the date of repayment.
2 The repayment of refunds issued prior to January 1, 1984
3 shall consist of the amount refunded plus 5% interest per
4 annum compounded annually for the period from the date of the
5 refund to the end of the month in which repayment is made.
6 The repayment of refunds issued after January 1, 1984 shall
7 consist of the amount refunded plus regular interest for the
8 period from the date of refund to the end of the month in
9 which repayment is made. However, in the case of a refund
10 that is repaid in a lump sum between July 1, 1998 and July 1,
11 1999, both inclusive January 1, 1991 and July 1, 1991,
12 repayment shall consist of the amount refunded plus interest
13 at the rate of 2.5% per annum compounded annually from the
14 date of the refund to the end of the month in which repayment
15 is made.
16 Upon repayment, the member shall receive credit for the
17 service, member contributions and regular interest that was
18 forfeited by acceptance of the refund as well as regular
19 interest for the period of non-membership. Such repayment
20 shall be made in full before retirement either in a lump sum
21 or in installment payments in accordance with such rules as
22 may be adopted by the board.
23 (b-5) The Board may adopt rules governing the repayment
24 of refunds and establishment of credits in cases involving
25 awards of back pay or reinstatement. The rules may authorize
26 repayment of a refund in installment payments and may waive
27 the payment of interest on refund amounts repaid in full
28 within a specified period.
29 (c) A member who is unmarried on the date of retirement
30 or who does not have an eligible survivors annuity
31 beneficiary at that date is entitled to a refund of
32 contributions for widow's annuity or survivors annuity
33 purposes, or both, as the case may be, without interest.
34 (d) Any member who has service credit in any position
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1 for which an alternative retirement annuity is provided and
2 in relation to which an increase in the rate of employee
3 contribution is required, shall be entitled to a refund,
4 without interest, of that part of the member's employee
5 contribution which results from that increase in the employee
6 rate if the member does not qualify for that alternative
7 retirement annuity at the time of retirement.
8 (Source: P.A. 90-448, eff. 8-16-97.)
9 Section 99. Effective date. This Act takes effect upon
10 becoming law.