Refund of Employee Contributions (40 ILCS 5/5-163)
- A participant who withdraws before the age of 50 and a participant with less than 10 years of service who withdraws before age 57 is entitled to a refund of contributions with 1 ½% simple interest.
- A participant that is age 50 and eligible for a minimum formula annuity is not eligible for a refund of contributions.
- In the event of a participant’s death, the employee annuity and widow contributions in excess of the sum received by annuity or benefit shall be refunded to the participant’s children. If no children or descendants exist, the refund shall be paid to the estate of the participant.
Refund of Widow’s Annuity Contributions (40 ILCS 5/5-165)
A participant who is unmarried at the time of retirement is entitled to a refund of contributions for the spousal annuity including 3% compounded interest.
The widow of a participant who received a spousal refund is not eligible for a widow’s annuity, unless (1) the amount of the refund is repaid including 3% compounded interest within one year after the date of marriage and (2) the date of marriage is one year prior to the date of death.