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| Public Act 094-0455 |
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AN ACT concerning public employee benefits.
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Be it enacted by the People of the State of Illinois,
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represented in the General Assembly:
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Section 5. The Illinois Pension Code is amended by changing | ||||
Section 14-130 as follows:
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(40 ILCS 5/14-130) (from Ch. 108 1/2, par. 14-130)
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Sec. 14-130. Refunds; rules.
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(a) Upon withdrawal a member is entitled to receive, upon | ||||
written
request, a refund of the member's contributions, | ||||
including credits granted
while in receipt of disability | ||||
benefits, without credited interest. The
board, in its | ||||
discretion may withhold payment of the refund of a member's
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contributions for a period not to exceed 1 year after the | ||||
member has ceased
to be an employee.
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For purposes of this Section, a member will be considered | ||||
to have
withdrawn from service if a change in, or transfer of, | ||||
his position
results in his becoming ineligible for continued | ||||
membership in this
System and eligible for membership in | ||||
another public retirement system
under this Act.
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(b) A member receiving a refund forfeits and relinquishes | ||||
all
accrued rights in the System, including all accumulated | ||||
creditable
service. If the person again becomes a member of the | ||||
System and
establishes at least 2 years of creditable service, | ||||
the member may repay
all the moneys previously refunded or a | ||||
portion of the moneys previously refunded representing | ||||
contributions for one or more whole months of creditable | ||||
service. If a member repays a portion of moneys previously | ||||
refunded, he or she may later repay some or all of the | ||||
remaining portion of those previously refunded moneys. | ||||
However, a former member may restore
credits previously | ||||
forfeited by acceptance of a refund without returning to
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service by applying in writing and repaying to the System, by | ||||
April 1,
1993, the amount of the refund plus regular interest | ||
calculated from the
date of refund to the date of repayment.
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The repayment of refunds issued prior to January 1, 1984 | ||
shall consist
of the amount refunded plus 5% interest per annum | ||
compounded annually for
the period from the date of the refund | ||
to the end of the month in which
repayment is made. The | ||
repayment of refunds issued after January 1, 1984
shall consist | ||
of the amount refunded plus regular interest for the period
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from the date of refund to the end of the month in which | ||
repayment is made.
The repayment of the refund of a person who | ||
accepts an alternative retirement cancellation payment under | ||
Section 14-108.5 shall consist of the entire amount paid to the | ||
person under subsection (c) of Section 14-108.5 plus regular | ||
interest for the period from the date of the refund to the end | ||
of the month in which repayment is made. However, in the case | ||
of a refund that is repaid in a lump sum between
January 1, | ||
1991 and July 1, 1991, repayment shall consist of the amount
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refunded plus interest at the rate of 2.5% per annum compounded | ||
annually
from the date of the refund to the end of the month in | ||
which repayment is made.
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Upon repayment, the member shall receive credit for the
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service for which the refund has been repaid, and the | ||
corresponding , member contributions and regular interest that | ||
was forfeited by
acceptance of the refund, as well as regular | ||
interest for the period of
non-membership. Such repayment shall | ||
be made in full before retirement
either in a lump sum or in | ||
installment payments in accordance with such
rules as may be | ||
adopted by the board.
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(b-5) The Board may adopt rules governing the repayment of | ||
refunds
and establishment of credits in cases involving awards | ||
of back pay or
reinstatement. The rules may authorize repayment | ||
of a refund in installment
payments and may waive the payment | ||
of interest on refund amounts repaid in
full within a specified | ||
period.
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(c) A member no longer in service who is unmarried and does | ||
not have an eligible survivors annuity
beneficiary on the date | ||
of application therefor is
entitled to a refund of | ||
contributions for widow's annuity or survivors
annuity | ||
purposes, or both, as the case may be, without interest. A | ||
widow's
annuity or survivors annuity shall not be payable upon | ||
the death of a person
who has received this refund, unless | ||
prior to that death the amount of the
refund has been repaid to | ||
the System, together with regular interest from the
date of the | ||
refund to the date of repayment.
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(d) Any member who has service credit in any position for | ||
which an
alternative retirement annuity is provided and in | ||
relation to which an
increase in the rate of employee | ||
contribution is required, shall be
entitled to a refund, | ||
without interest, of that part of the member's
employee | ||
contribution which results from that increase in the employee
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rate if the member does not qualify for that alternative | ||
retirement
annuity at the time of retirement.
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(Source: P.A. 93-839, eff. 7-30-04.)
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Section 99. Effective date. This Act takes effect upon | ||
becoming law.
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