Public Act 094-0455
 
HB1383 Enrolled LRB094 06345 EFG 36421 b

    AN ACT concerning public employee benefits.
 
    Be it enacted by the People of the State of Illinois,
represented in the General Assembly:
 
    Section 5. The Illinois Pension Code is amended by changing
Section 14-130 as follows:
 
    (40 ILCS 5/14-130)  (from Ch. 108 1/2, par. 14-130)
    Sec. 14-130. Refunds; rules.
    (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
contributions for a period not to exceed 1 year after the
member has ceased to be an employee.
    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to have withdrawn from service if a change in, or transfer of,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.
    (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
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.
    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
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
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.
    Upon repayment, the member shall receive credit for the
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.
    (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.
    (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.
    (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
rate if the member does not qualify for that alternative
retirement annuity at the time of retirement.
(Source: P.A. 93-839, eff. 7-30-04.)
 
    Section 99. Effective date. This Act takes effect upon
becoming law.

Effective Date: 8/4/2005