Illinois General Assembly - Full Text of Public Act 099-0682
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Public Act 099-0682


 

Public Act 0682 99TH GENERAL ASSEMBLY

  
  
  

 


 
Public Act 099-0682
 
HB6021 EnrolledLRB099 19304 EFG 43696 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
Sections 7-154, 7-159, 15-139, 15-145, 15-154, and 16-143.2 as
follows:
 
    (40 ILCS 5/7-154)  (from Ch. 108 1/2, par. 7-154)
    Sec. 7-154. Surviving spouse annuities - Eligibility.
    (a) A surviving spouse annuity shall be payable to the
eligible surviving spouse of a participating employee, an
employee annuitant, or a person who on the date of death would
have been entitled to a retirement annuity, had he applied for
such annuity, and who dies at any time when a surviving spouse
annuity equals at least $5 per month, provided:
        (1) The surviving spouse (i) was married to the
    participating employee for at least one year on the date of
    death, or (ii) was married to the annuitant or person
    entitled to a retirement annuity for at least one year
    prior to the date of termination of service, or (iii) was
    married to the deceased annuitant for at least one year on
    the date of the deceased annuitant's death, if at the time
    of termination of service the deceased annuitant was
    married for at least one year to a spouse who does not
    survive the deceased annuitant. (Item (iii) applies to the
    spouses of annuitants who die on or after the effective
    date of this amendatory Act of the 99th General Assembly,
    notwithstanding whether the annuitant was in service on or
    after that effective date or the effective date of Public
    Act 87-850.)
        (2) The male deceased employee annuitant or such other
    person entitled to a retirement annuity had contributed to
    this fund for surviving spouse annuity purposes for at
    least 1 year or continuously since the effective date of
    the participating municipality or participating
    instrumentality.
        (3) The female deceased employee annuitant or such
    other person entitled to a retirement annuity was in
    service on or after July 27, 1972, provided that the
    annuity shall not be computed on the basis of any
    retirement annuity effective before that date.
        (4) If the employee dies before termination of service,
    the employee did not exclude the spouse from any death
    benefit or surviving spouse annuity pursuant to subsection
    (b) of Section 7-118. A designation of beneficiary naming a
    spouse and children jointly or a trust pursuant to
    subsection (b) of Section 7-118 shall preclude payment of a
    surviving spouse annuity.
    (b) If a person is the spouse of a retiring participating
employee on the date of the initial payment of a retirement
annuity and is qualified to receive a surviving spouse annuity
upon the death of the employee and the surviving spouse
contributions are not refunded to the employee, then a
surviving spouse annuity shall be payable to that person even
if the marriage to the employee is dissolved after that date.
    (c) Eligibility of a surviving spouse shall be determined
as of the date of death. Only one surviving spouse annuity
shall be paid on account of the death of any employee.
(Source: P.A. 87-740; 87-850.)
 
    (40 ILCS 5/7-159)  (from Ch. 108 1/2, par. 7-159)
    Sec. 7-159. Surviving spouse annuity - refund of survivor
credits.
    (a) Any employee annuitant who (1) upon the date a
retirement annuity begins is not then married, or (2) is
married to a person who would not qualify for surviving spouse
annuity if the person died on such date, is entitled to a
refund of the survivor credits including interest accumulated
on the date the annuity begins, excluding survivor credits and
interest thereon credited during periods of disability, and no
spouse shall have a right to any surviving spouse annuity from
this Fund. If the employee annuitant reenters service and upon
subsequent retirement has a spouse who would qualify for a
surviving spouse annuity, the employee annuitant may pay the
fund the amount of the refund plus interest at the effective
rate at the date of payment. The payment shall qualify the
spouse for a surviving spouse annuity and the amount paid shall
be considered as survivor contributions.
    (b) Instead of a refund under subsection (a), the retiring
employee may elect to convert the amount of the refund into an
annuity, payable separately from the retirement annuity. If the
annuitant dies before the guaranteed amount has been
distributed, the remainder shall be paid in a lump sum to the
designated beneficiary of the annuitant. The Board shall adopt
any rules necessary for the implementation of this subsection.
    (c) An annuitant who retired prior to June 1, 2011 and
received a refund of survivor credits under subsection (a), and
who thereafter became, and remains, either:
        (1) a party to a civil union or a party to a legal
    relationship that is recognized as a civil union or
    marriage under the Illinois Religious Freedom Protection
    and Civil Union Act on or after June 1, 2011; or
        (2) a party to a marriage under the Illinois Marriage
    and Dissolution of Marriage Act on or after February 26,
    2014; or
        (3) a party to a marriage, civil union or other legal
    relationship that, at the time it was formed, was not
    legally recognized in Illinois but was subsequently
    recognized as a civil union or marriage under the Illinois
    Religious Freedom Protection and Civil Union Act on or
    after June 1, 2011, a marriage under the Illinois Marriage
    and Dissolution of Marriage Act on or after February 26,
    2014, or both;
may, within a period of one year beginning 5 months after the
effective date of this amendatory Act of the 99th General
Assembly, make an election to re-establish rights to a
surviving spouse annuity under Sections 7-154 through 7-158
(notwithstanding the eligibility requirements of paragraph
(a)(1) of Section 7-154), by paying to the Fund: (1) the total
amount of the refund received for survivor credits; and (2)
interest thereon at the actuarially assumed rate of return from
the date of the refund to the date of payment. Such election
must be made prior to the date of death of the annuitant.
    The Fund may allow the annuitant to repay this refund over
a period of not more than 24 months. To the extent permitted by
the Internal Revenue Code of 1986, as amended, for federal and
State tax purposes, if a member pays in monthly installments by
reducing the monthly benefit by the amount of the otherwise
applicable contribution, the monthly amount by which the
annuitant's benefit is reduced shall not be treated as a
contribution by the annuitant but rather as a reduction of the
annuitant's monthly benefit.
    If an annuitant makes an election under this subsection (c)
and the contributions required are not paid in full, an
otherwise qualifying spouse shall be given the option to make
an additional lump sum payment of the remaining contributions
and qualify for a surviving spouse annuity. Otherwise, an
additional refund representing contributions made hereunder
shall be paid at the annuitant's death and there shall be no
surviving spouse annuity paid.
(Source: P.A. 90-766, eff. 8-14-98.)
 
    (40 ILCS 5/15-139)  (from Ch. 108 1/2, par. 15-139)
    Sec. 15-139. Retirement annuities; cancellation; suspended
during employment.
    (a) If an annuitant returns to employment for an employer
within 60 days after the beginning of the retirement annuity
payment period, the retirement annuity shall be cancelled, and
the annuitant shall refund to the System the total amount of
the retirement annuity payments which he or she received. If
the retirement annuity is cancelled, the participant shall
continue to participate in the System.
    (b) If an annuitant retires prior to age 60 and receives or
becomes entitled to receive during any month compensation in
excess of the monthly retirement annuity (including any
automatic annual increases) for services performed after the
date of retirement for any employer under this System, that
portion of the monthly retirement annuity provided by employer
contributions shall not be payable.
    If an annuitant retires at age 60 or over and receives or
becomes entitled to receive during any academic year
compensation in excess of the difference between his or her
highest annual earnings prior to retirement and his or her
annual retirement annuity computed under Rule 1, Rule 2, Rule
3, or Rule 4 of Section 15-136, or under Section 15-136.4, for
services performed after the date of retirement for any
employer under this System, that portion of the monthly
retirement annuity provided by employer contributions shall be
reduced by an amount equal to the compensation that exceeds
such difference.
    However, any remuneration received for serving as a member
of the Illinois Educational Labor Relations Board shall be
excluded from "compensation" for the purposes of this
subsection (b), and serving as a member of the Illinois
Educational Labor Relations Board shall not be deemed to be a
return to employment for the purposes of this Section. This
provision applies without regard to whether service was
terminated prior to the effective date of this amendatory Act
of 1991.
    "Academic year", as used in this subsection (b), means the
12-month period beginning September 1.
    (c) If an employer certifies that an annuitant has been
reemployed on a permanent and continuous basis or in a position
in which the annuitant is expected to serve for at least 9
months, the annuitant shall resume his or her status as a
participating employee and shall be entitled to all rights
applicable to participating employees upon filing with the
board an election to forgo all annuity payments during the
period of reemployment. Upon subsequent retirement, the
retirement annuity shall consist of the annuity which was
terminated by the reemployment, plus the additional retirement
annuity based upon service granted during the period of
reemployment, but the combined retirement annuity shall not
exceed the maximum annuity applicable on the date of the last
retirement.
    The total service and earnings credited before and after
the initial date of retirement shall be considered in
determining eligibility of the employee or the employee's
beneficiary to benefits under this Article, and in calculating
final rate of earnings.
    In determining the death benefit payable to a beneficiary
of an annuitant who again becomes a participating employee
under this Section, accumulated normal and additional
contributions shall be considered as the sum of the accumulated
normal and additional contributions at the date of initial
retirement and the accumulated normal and additional
contributions credited after that date, less the sum of the
annuity payments received by the annuitant.
    The survivors insurance benefits provided under Section
15-145 shall not be applicable to an annuitant who resumes his
or her status as a participating employee, unless the
annuitant, at the time of initial retirement, has a survivors
insurance beneficiary who could qualify for such benefits or
the annuitant repaid the survivors insurance contribution
refund or additional annuity under subsection (c-5) of Section
15-154.
    If the participant's employment is terminated because of
circumstances other than death before 9 months from the date of
reemployment, the provisions of this Section regarding
resumption of status as a participating employee shall not
apply. The normal and survivors insurance contributions which
are deducted during this period shall be refunded to the
annuitant without interest, and subsequent benefits under this
Article shall be the same as those which were applicable prior
to the date the annuitant resumed employment.
    The amendments made to this Section by this amendatory Act
of the 91st General Assembly apply without regard to whether
the annuitant was in service on or after the effective date of
this amendatory Act.
(Source: P.A. 97-933, eff. 8-10-12; 97-968, eff. 8-16-12;
98-92, eff. 7-16-13; 98-596, eff. 11-19-13.)
 
    (40 ILCS 5/15-145)  (from Ch. 108 1/2, par. 15-145)
    Sec. 15-145. Survivors insurance benefits; conditions and
amounts.
    (a) The survivors insurance benefits provided under this
Section shall be payable to the eligible survivors of a Tier 1
member covered under the traditional benefit package upon the
death of (1) a participating employee with at least 1 1/2 years
of service, (2) a participant who terminated employment with at
least 10 years of service, and (3) an annuitant in receipt of a
retirement annuity or disability retirement annuity under this
Article.
    Service under the State Employees' Retirement System of
Illinois, the Teachers' Retirement System of the State of
Illinois and the Public School Teachers' Pension and Retirement
Fund of Chicago shall be considered in determining eligibility
for survivors benefits under this Section.
    If by law, a function of a governmental unit, as defined by
Section 20-107, is transferred in whole or in part to an
employer, and an employee transfers employment from this
governmental unit to such employer within 6 months after the
transfer of this function, the service credits in the
governmental unit's retirement system which have been
validated under Section 20-109 shall be considered in
determining eligibility for survivors benefits under this
Section.
    (b) A surviving spouse of a deceased participant, or of a
deceased annuitant who did not take a refund or additional
annuity consisting of accumulated survivors insurance
contributions or who repaid the refund or additional annuity,
shall receive a survivors annuity of 30% of the final rate of
earnings. Payments shall begin on the day following the
participant's or annuitant's death or the date the surviving
spouse attains age 50, whichever is later, and continue until
the death of the surviving spouse. The annuity shall be payable
to the surviving spouse prior to attainment of age 50 if the
surviving spouse has in his or her care a deceased
participant's or annuitant's dependent unmarried child under
age 18 (under age 22 if a full-time student) who is eligible
for a survivors annuity.
    Remarriage of a surviving spouse prior to attainment of age
55 that occurs before the effective date of this amendatory Act
of the 91st General Assembly shall disqualify him or her for
the receipt of a survivors annuity until July 6, 2000.
    A surviving spouse whose survivors annuity has been
terminated due to remarriage may apply for reinstatement of
that annuity. The reinstated annuity shall begin to accrue on
July 6, 2000, except that if, on July 6, 2000, the annuity is
payable to an eligible surviving child or parent, payment of
the annuity to the surviving spouse shall not be reinstated
until the annuity is no longer payable to any eligible
surviving child or parent. The reinstated annuity shall include
any one-time or annual increases received prior to the date of
termination, as well as any increases that would otherwise have
accrued from the date of termination to the date of
reinstatement. An eligible surviving spouse whose expectation
of receiving a survivors annuity was lost due to remarriage
before attainment of age 50 shall also be entitled to
reinstatement under this subsection, but the resulting
survivors annuity shall not begin to accrue sooner than upon
the surviving spouse's attainment of age 50.
    The changes made to this subsection by this amendatory Act
of the 92nd General Assembly (pertaining to remarriage prior to
age 55 or 50) apply without regard to whether the deceased
participant or annuitant was in service on or after the
effective date of this amendatory Act.
    (c) Each dependent unmarried child under age 18 (under age
22 if a full-time student) of a deceased participant, or of a
deceased annuitant who did not take a refund or additional
annuity consisting of accumulated survivors insurance
contributions or who repaid the refund or additional annuity,
shall receive a survivors annuity equal to the sum of (1) 20%
of the final rate of earnings, and (2) 10% of the final rate of
earnings divided by the number of children entitled to this
benefit. Payments shall begin on the day following the
participant's or annuitant's death and continue until the child
marries, dies, or attains age 18 (age 22 if a full-time
student). If the child is in the care of a surviving spouse who
is eligible for survivors insurance benefits, the child's
benefit shall be paid to the surviving spouse.
    Each unmarried child over age 18 of a deceased participant
or of a deceased annuitant who had a survivor's insurance
beneficiary at the time of his or her retirement, and who was
dependent upon the participant or annuitant by reason of a
physical or mental disability which began prior to the date the
child attained age 18 (age 22 if a full-time student), shall
receive a survivor's annuity equal to the sum of (1) 20% of the
final rate of earnings, and (2) 10% of the final rate of
earnings divided by the number of children entitled to
survivors benefits. Payments shall begin on the day following
the participant's or annuitant's death and continue until the
child marries, dies, or is no longer disabled. If the child is
in the care of a surviving spouse who is eligible for survivors
insurance benefits, the child's benefit may be paid to the
surviving spouse. For the purposes of this Section, disability
means inability to engage in any substantial gainful activity
by reason of any medically determinable physical or mental
impairment that can be expected to result in death or that has
lasted or can be expected to last for a continuous period of at
least one year.
    (d) Each dependent parent of a deceased participant, or of
a deceased annuitant who did not take a refund or additional
annuity consisting of accumulated survivors insurance
contributions or who repaid the refund or additional annuity,
shall receive a survivors annuity equal to the sum of (1) 20%
of final rate of earnings, and (2) 10% of final rate of
earnings divided by the number of parents who qualify for the
benefit. Payments shall begin when the parent reaches age 55 or
the day following the participant's or annuitant's death,
whichever is later, and continue until the parent dies.
Remarriage of a parent prior to attainment of age 55 shall
disqualify the parent for the receipt of a survivors annuity.
    (e) In addition to the survivors annuity provided above,
each survivors insurance beneficiary shall, upon death of the
participant or annuitant, receive a lump sum payment of $1,000
divided by the number of such beneficiaries.
    (f) The changes made in this Section by Public Act 81-712
pertaining to survivors annuities in cases of remarriage prior
to age 55 shall apply to each survivors insurance beneficiary
who remarries after June 30, 1979, regardless of the date that
the participant or annuitant terminated his employment or died.
    The change made to this Section by this amendatory Act of
the 91st General Assembly, pertaining to remarriage prior to
age 55, applies without regard to whether the deceased
participant or annuitant was in service on or after the
effective date of this amendatory Act of the 91st General
Assembly.
    (g) On January 1, 1981, any person who was receiving a
survivors annuity on or before January 1, 1971 shall have the
survivors annuity then being paid increased by 1% for each full
year which has elapsed from the date the annuity began. On
January 1, 1982, any survivor whose annuity began after January
1, 1971, but before January 1, 1981, shall have the survivor's
annuity then being paid increased by 1% for each year which has
elapsed from the date the survivor's annuity began. On January
1, 1987, any survivor who began receiving a survivor's annuity
on or before January 1, 1977, shall have the monthly survivor's
annuity increased by $1 for each full year which has elapsed
since the date the survivor's annuity began.
    (h) If the sum of the lump sum and total monthly survivor
benefits payable under this Section upon the death of a
participant amounts to less than the sum of the death benefits
payable under items (2) and (3) of Section 15-141, the
difference shall be paid in a lump sum to the beneficiary of
the participant who is living on the date that this additional
amount becomes payable.
    (i) If the sum of the lump sum and total monthly survivor
benefits payable under this Section upon the death of an
annuitant receiving a retirement annuity or disability
retirement annuity amounts to less than the death benefit
payable under Section 15-142, the difference shall be paid to
the beneficiary of the annuitant who is living on the date that
this additional amount becomes payable.
    (j) Effective on the later of (1) January 1, 1990, or (2)
the January 1 on or next after the date on which the survivor
annuity begins, if the deceased member died while receiving a
retirement annuity, or in all other cases the January 1 nearest
the first anniversary of the date the survivor annuity payments
begin, every survivors insurance beneficiary shall receive an
increase in his or her monthly survivors annuity of 3%. On each
January 1 after the initial increase, the monthly survivors
annuity shall be increased by 3% of the total survivors annuity
provided under this Article, including previous increases
provided by this subsection. Such increases shall apply to the
survivors insurance beneficiaries of each participant and
annuitant, whether or not the employment status of the
participant or annuitant terminates before the effective date
of this amendatory Act of 1990. This subsection (j) also
applies to persons receiving a survivor annuity under the
portable benefit package.
    (k) If the Internal Revenue Code of 1986, as amended,
requires that the survivors benefits be payable at an age
earlier than that specified in this Section the benefits shall
begin at the earlier age, in which event, the survivor's
beneficiary shall be entitled only to that amount which is
equal to the actuarial equivalent of the benefits provided by
this Section.
    (l) The changes made to this Section and Section 15-131 by
this amendatory Act of 1997, relating to benefits for certain
unmarried children who are full-time students under age 22,
apply without regard to whether the deceased member was in
service on or after the effective date of this amendatory Act
of 1997. These changes do not authorize the repayment of a
refund or a re-election of benefits, and any benefit or
increase in benefits resulting from these changes is not
payable retroactively for any period before the effective date
of this amendatory Act of 1997.
(Source: P.A. 98-92, eff. 7-16-13.)
 
    (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 issued
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) Except as otherwise provided under subsection (c-5), if
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.
    (c-5) Notwithstanding subsection (c), an annuitant who
retired prior to June 1, 2011 and made the election under
subsection (c), and who thereafter became, and remains, either:
        (1) a party to a civil union or a party to a legal
    relationship that is recognized as a civil union or
    marriage under the Illinois Religious Freedom Protection
    and Civil Union Act on or after June 1, 2011; or
        (2) a party to a marriage under the Illinois Marriage
    and Dissolution of Marriage Act on or after February 26,
    2014; or
        (3) a party to a marriage, civil union or other legal
    relationship that, at the time it was formed, was not
    legally recognized in Illinois but was subsequently
    recognized as a civil union or marriage under the Illinois
    Religious Freedom Protection and Civil Union Act on or
    after June 1, 2011, a marriage under the Illinois Marriage
    and Dissolution of Marriage Act on or after February 26,
    2014, or both;
may make a one-time, irrevocable election to repay the refund
or additional annuity payments received under subsection (c),
together with compound interest thereon at the actuarially
assumed rate of return from the date the refund was issued or
the date each additional annuity payment was issued to the date
of repayment. The annuitant shall submit proof of party status
for item (1), (2), or (3) in the form of a valid marriage
certificate or a civil union certificate with any additional
requirements the Board prescribes by rulemaking. The election
must be received by the System (i) within a period of one year
beginning 5 months after the effective date of this amendatory
Act of the 99th General Assembly and (ii) prior to the date of
death of the annuitant.
    To the extent permitted under the Internal Revenue Code of
1986, as amended, the full repayment shall be made within a
period beginning on the date of the election and ending on the
earlier of the 24th month thereafter or the date of the
annuitant's death. If an annuitant fails to make the repayment
within the required period, any payments made shall be
returned, without interest, to the annuitant (or to the
annuitant's estate if the payments ceased due to death), and
survivors insurance benefits under Section 15-145 shall not be
payable upon the annuitant's death.
    Upon such repayment, all forfeited survivors insurance
benefit rights and credits under Section 15-145 shall be
restored. This repayment right shall not alter or modify any
eligibility requirement for survivors insurance beneficiaries
under this Article applicable upon the annuitant's death. The
repayment shall be irrevocable. No person shall have a claim or
right to the repaid amounts in a manner not otherwise provided
for under this Article in the event that: the marriage, civil
union, or other legal relationship described in this subsection
is dissolved, annulled, or declared invalid by a court of
competent jurisdiction; or the other party to the marriage,
civil union, or other legal relationship predeceases the
annuitant or otherwise fails to qualify as a survivors
insurance beneficiary upon the annuitant's death.
    For purposes of this subsection (c-5), the term "annuitant"
shall include an annuitant who resumed his or her status as a
participating employee under Section 15-139(c).
    (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. 99-450, eff. 8-24-15.)
 
    (40 ILCS 5/16-143.2)  (from Ch. 108 1/2, par. 16-143.2)
    Sec. 16-143.2. Refund of contributions for survivor
benefits at retirement.
    (a) If at the time of applying for a retirement annuity
under Section 16-132, or while in receipt of such a retirement
annuity, a member does not have a dependent beneficiary as
defined in paragraph (3) of Section 16-140, such member may be
granted, upon written request, a refund of actual contributions
for survivor benefits, without interest. Members will be
eligible for a refund of contributions for survivor benefits as
provided in the previous sentence notwithstanding the fact that
they began receiving retirement benefits prior to this
amendatory Act of 1985. Acceptance of the refund will forfeit
all rights to survivor benefits under Sections 16-140 through
16-143.
    (b) Except as provided under subsection (c), an An
annuitant who reestablishes membership following acceptance of
refund of contributions for survivor benefits under subsection
(a) of this Section may reinstate eligibility for benefits
provided under Sections 16-140 through 16-143 only through: (1)
repayment of such refund together with regular interest thereon
from the date of the refund to the date of repayment, and (2)
completion of one year of creditable service following
acceptance of such refund. If membership is reestablished and
the above conditions (1) and (2) are not met, an additional
refund, representing contributions made following the previous
refund will be provided upon the member's death or retirement,
whichever is applicable.
    (c) Notwithstanding subsection (b), an annuitant who has
received a refund under subsection (a) may, during a period of
one year beginning 5 months after the effective date of this
amendatory Act of the 99th General Assembly, make an election
to reestablish rights to survivor benefits under Sections
16-140 through 16-143 by paying to the System:
        (1) the total amount of the refund received for actual
    contributions; and
        (2) interest on the amount of the refund at the
    actuarially assumed rate of return for the period starting
    on the date of receipt of the refund and ending when the
    annuitant has made an election under this subsection (c).
    The System may allow an individual to repay this refund
through: a tax-deferred lump sum payment in full; substantially
equal monthly installments over a period of at least one but
not more than 24 months by reducing the annuitant's monthly
benefit over the established number of months by the amount of
the otherwise applicable contribution; or a combination
thereof. To the extent permitted under the Internal Revenue
Code of 1986, as amended, for federal and State tax purposes,
the monthly amount by which the annuitant's benefit is reduced
shall not be treated as a contribution by the annuitant, but
rather as a reduction of the annuitant's monthly benefit.
    If a member makes an election under this subsection (c) and
the contributions required in items (1) and (2) of this
subsection (c) are not paid in full, an additional one-time
lump sum refund representing contributions made following the
previous refund shall be provided to the named beneficiary or
beneficiaries on file with the System or, if none, to the
member's estate, when the member dies.
(Source: P.A. 87-794.)
 
    Section 99. Effective date. This Act takes effect upon
becoming law.

Effective Date: 7/29/2016