Illinois Administrative Code › Title 80 - PUBLIC OFFICIALS AND EMPLOYEES › Part 1540 - THE ADMINISTRATION AND OPERATION OF THE STATE EMPLOYEES' RETIREMENT SYSTEM OF ILLINOIS › Section 1540.250 - Payments to Establish Credit for Service for Which Contributions are Permitted

Current through Register Vol. 48, No. 28, July 12, 2024
a) If a
			 member receives one or more contribution refunds from the System, past service
			 credits previously refunded will be reinstated only after the two-year minimum
			 service requirement is satisfied and the member repays the amount of refunds
			 previously received together with interest due before retirement either in a
			 lump sum or installment payments by direct payment or payroll deduction. No
			 payment will be applied to any period of service prior to a refund until that
			 refund is paid in full. Service credit will be granted only when a stipulated
			 refund, qualifying, short period or other type of permissive service credit as
			 set forth in the Act is paid in full; except, in the event of death of the
			 member partial service credit will be granted. Such partial service credit will
			 be based on contributions and interest paid as of date of death.
b) Under the installment option, interest
			 will be calculated on the total amount of contributions for the stipulated
			 period of service through the month of the date the member elects to complete
			 payment. No installment option will be approved for payments of less than
			 $20.00 per payment or
			 $10.00 per pay period for payroll
			 deduction. For picked-up contributions as described in Section
			 1540.255, if payment is made in
			 full prior to the final due date stipulated in the option, interest will be
			 recalculated and a refund of interest paid to the member, provided such payment
			 is received at least 2 months prior to the due date and is in excess of
			 $5.00.
c) If a member pays the contributions and
			 interest due in full under an installment option payment plan and if that plan
			 does not account for interest earned on contributions made during the
			 installment option payment plan, then an interest rebate will be paid to
			 reflect interest earned during the installment period. The rebate will be
			 calculated based on regular interest as defined in the Retirement Savings Act
			 [30 ILCS
			 430 ]. The amount of rebate will be determined as of
			 each June 30 preceding the date of payment in full, based on the total of the
			 payments accumulated in the account at the beginning of each fiscal year. At
			 the time the account is paid in full, the total interest accumulated in the
			 rebate account will be paid to the member. The interest rebate will not be paid
			 if the accumulation is less than $5.00.
d) Except in the case of contributions made
			 through the pick-up option described in Section 1540.255, if a member elects to
			 receive a retirement annuity, completes a revocation card or for some other
			 reason elects not to complete the member's installment payment option, all
			 monies paid by the member on such option will be refunded to the member and no
			 service credit granted.
e) If a
			 member receives a widow/survivor contribution refund upon retirement, and
			 subsequently a beneficiary becomes eligible for the widow/survivor annuity, the
			 member may repay the widow/survivor contribution refund in a lump sum or
			 installment payments. The repayment shall consist of the amount of the
			 widow/survivor contribution refund, together with interest, from the date of
			 refund to the date of repayment. If the member requests to repay the refund, or
			 is in the process of repaying the refund, and dies before the completion of the
			 repayment, then the balance of the repayment due may be paid in a lump sum,
			 within 30 days after the estate or eligible survivor receives the notice amount
			 due from the System.
f) All
			 installment payment plans which pertain to optional service purchases (see
			 Section 1540.255), offered by the System and agreed to by the member, shall be
			 in annual increments and shall not exceed 5 years in length.
g) Funds may be issued from another account
			 to the System for purposes of establishing or upgrading service credit of a
			 member who entered an installment plan only when:
1) the member separates from
			 service;
2) the System receives the
			 payment within 30 days after the member's separation from service;
			 and
3) the payment completes the
			 transaction.