40 ILCS 5/7-159
2021 Illinois Compiled Statutes|Chapter 40 - PENSIONS|40 ILCS 5/ - Illinois Pension Code.|Article 7 - Illinois Municipal Retirement Fund

 (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.(d) Any surviving spouse of an annuitant who (1) retired prior to June 1, 2011, (2) was not married on the date the retirement annuity began, (3) received a refund of survivor credits under subsection (a), and  (4) died prior to the implementation of Public Act 99-682 on December 29, 2016 may, within a period of one year beginning 5 months after the effective date of this amendatory Act of the 101st 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) of subsection (1) of Section 7-154), by paying to the Fund: (i) the total amount of the refund received for survivor credits; and (ii) interest thereon at the actuarially assumed rate of return from the date of the refund to the date of payment. The surviving spouse must also provide documentation proving he or she was married to the annuitant or a party to a civil union with the annuitant at the time of death and has not subsequently remarried. This proof must include a marriage certificate or a certificate for a civil union and any other supporting documents deemed necessary by the Fund.(Source: P.A. 101-610, eff. 1-1-20.)