(40 ILCS 5/15-154) (from Ch. 108 1/2, par. 15-154)
Sec. 15-154.
Refunds.
(a) A participant whose status as an employee is terminated, regardless of
cause, or who has been on lay off status for more than 120 days, and who is not
on leave of absence, is entitled to a refund of contributions upon application;
except that not more than one such refund application may be made during any
academic year.
Except as set forth in subsections (a-1) and (a-2), the refund shall
be the sum of the accumulated normal, additional, and survivors insurance
contributions, plus the entire contribution made by the participant under
Section 15-113.3, less the amount of interest credited on these contributions
each year in excess of 4 1/2% of the amount on which interest was calculated.
(a-1) A person who elects, in accordance with the requirements of Section
15-134.5, to participate in the portable benefit package and who becomes a
participating employee under that retirement program upon the conclusion of
the one-year waiting period applicable to the portable benefit package election
shall have his or her refund calculated in accordance with the provisions of
subsection (a-2).
(a-2) The refund payable to a participant described in subsection (a-1)
shall be the sum of the participant's accumulated normal and additional
contributions, as defined in Sections 15-116 and 15-117, plus the entire
contribution made by the participant under Section 15-113.3. If the
participant terminates with 5 or more years of service for employment as
defined in Section 15-113.1, he or she shall also be entitled to a distribution
of employer contributions in an amount equal to the sum of the accumulated
normal and additional contributions, as defined in Sections 15-116 and 15-117.
(b) Upon acceptance of a refund, the participant forfeits all
accrued rights and credits in the System, and if subsequently reemployed, the
participant shall be considered a new employee subject to all the qualifying
conditions for participation and eligibility for benefits applicable to new
employees. If such person again becomes a participating employee and continues
as such for 2 years, or is employed by an employer and participates for at
least 2 years in the Federal Civil Service Retirement System, all such rights,
credits, and previous status as a participant shall be restored upon repayment
of the amount of the refund, together with compound interest thereon from the
date the refund was received to the date of repayment at the rate of 6% per
annum through August 31, 1982, and at the effective rates after that date.
When a participant in the portable benefit package who received a refund
which included a distribution of employer contributions repays a refund
pursuant to this Section, one-half of the amount repaid shall be deemed the
member's reinstated accumulated normal and additional contributions and the
other half shall be allocated as an employer contribution to the System,
except that any amount repaid for previously purchased military service
credit under Section 15-113.3 shall be accounted for as such.
(c) If a participant covered under the traditional
benefit package has made survivors insurance contributions, but has no
survivors insurance beneficiary upon retirement, he or she shall be entitled
to elect a refund of the accumulated survivors insurance contributions, or to
elect an additional annuity the value of which is equal to the accumulated
survivors insurance contributions. This election must be made prior to the
date the person's retirement annuity is approved by the System.
(d) A participant, upon application, is entitled to a refund of his
or her accumulated additional contributions attributable to the additional
contributions described in the last sentence of subsection (c) of Section
15-157. Upon the acceptance of such a refund of accumulated additional
contributions, the participant forfeits all rights and credits which may
have accrued because of such contributions.
(e) A participant who terminates his or her employee status and elects to
waive service credit under Section 15-154.2, is entitled to a refund of the
accumulated normal, additional and survivors insurance contributions, if any,
which were credited the participant for this service, or to an additional
annuity the value of which is equal to the accumulated normal, additional and
survivors insurance contributions, if any; except that not more than one such
refund application may be made during any academic year. Upon acceptance of
this refund, the participant forfeits all rights and credits accrued because
of this service.
(f) If a police officer or firefighter receives a retirement annuity
under Rule 1 or 3 of Section 15-136, he or she shall be entitled at
retirement to a refund of the difference between his or her accumulated
normal contributions and the normal contributions which would have
accumulated had such person filed a waiver of the retirement formula
provided by Rule 4 of Section 15-136.
(g) If, at the time of retirement, a participant would be entitled to
a retirement annuity under Rule 1, 2, 3, 4, or 5 of Section 15-136, or under
Section 15-136.4, that exceeds
the maximum specified in clause (1) of subsection (c) of Section 15-136, he
or she shall be entitled to a refund of the employee contributions, if any,
paid under Section 15-157 after the date upon which continuance of such
contributions would have otherwise caused the retirement annuity to exceed
this maximum, plus compound interest at the effective rates.
(Source: P.A. 92-16, eff. 6-28-01;
92-424, eff. 8-17-01; 93-347, eff. 7-24-03.)
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