40 ILCS 5/15-154
2021 Illinois Compiled Statutes|Chapter 40 - PENSIONS|40 ILCS 5/ - Illinois Pension Code.|Article 15 - State Universities Retirement System

 (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 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; 99-682, eff. 7-29-16.)