Section 1540.60  Severance of Employment – A Condition to the Payment of a Refund or Retirement Annuity

a)         Application

            Any member eligible to receive a refund of his contribution or a retirement annuity shall, if he so elects, make written request thereof at the Springfield Office of the System upon a form prescribed by the Board.

b)         Verification of Withdrawal From Service

            A request for any of the payments outlined in this Section shall not be considered until the Board shall have received a written notice from the Department in which the member was employed certifying to the member's withdrawal from service and the effective date thereof.

c)         Withdrawal From Service – Period of Separation

            A member who terminates employment and then returns to State employment shall be eligible for a refund of contributions only if there is at least a fourteen day break in State employment as reflected on a payroll and the refund application is executed by the member prior to the date of reemployment. A member who is placed on "Temporary Layoff" as defined by rule of the Department of Central Management Services shall not be considered to have met the definition of "Withdrawal" as defined in the Act.

d)         Effect of Legal Action

            In the event a refund or a retirement annuity is paid and legal action results in the member being reinstated to his position with full restoration of all rights and privileges, he shall be permitted to reestablish his credit by repaying the amount of contributions refunded to him, without interest, if paid within 30 days from the date of notification by the System.  If a member does not repay the amount of contributions refunded to him, without interest, within 30 days from the date of notification by the System, he may request to re-establish the service credit either in a lump sum or installment payments by direct payment or payroll deduction.  The two-year minimum service requirement is waived for purposes of determining the period within which the member may commence payment of the refund.  All other repayment terms and conditions will be the same as those contained in Section 1540.250, Payments to Establish Credit for Service for Which Contributions are Permitted. If a retirement annuity has been initiated it shall be discontinued immediately and he shall repay the total amount of benefits received during the reinstated period.

(Source:  Amended at 20 Ill. Reg. 8033, effective June 15, 1996)