Board Resolution 2021-05-12(a)

Meeting room

Topic: Surviving Spouse Benefit
Subtopic: Repayment of Annuitized Surviving Spouse Contributions
Date: 5/28/2021
Status: Active

WHEREAS, Section 7-198 of the Illinois Pension Code authorizes the Board of Trustees of the Illinois Municipal Retirement Fund to make rules necessary or desirable for the efficient administration of the fund; and

WHEREAS, Section 7-159 of the Illinois Pension Code provides that when a member retires with no spouse eligible for a surviving spouse benefit, the retiree may take a lump-sum refund of their surviving spouse contributions, or may annuitize the refund into a monthly annuity; and

WHEREAS, Section 7-159(a) provides that when a retiree who receives a refund of surviving spouse contributions reenters service and later re-retires with a qualifying spouse, the retiree repay the previously received surviving spouse refund; and

WHEREAS, the Pension Code does not specifically provide for the repayment of an annuitized surviving spouse refund when a member returns to service and subsequently retires with a qualifying spouse; and

WHEREAS, Section 7-159(b) specifically authorizes the Board of Trustees to implement any rules necessary for the implementation of annuitized refunds of surviving spouse contributions; and

WHEREAS, the Board of Trustees has determined that the following rules are necessary and appropriate for the efficient administration of the fund in accordance.

NOW THEREFORE BE IT RESOLVED that the following rules shall govern the repayment of annuitized surviving spouse refunds:

  1. If an employee annuitant who previously retired with no qualifying spouse as defined in Section 7-154 of the Pension Code and took an annuitized refund of the surviving spouse contributions under Section 7-159(b) later reenters service and subsequently retires with a spouse who would qualify for a surviving spouse annuity, the employee annuitant may pay the Fund the amount of the annuitized refund payments received plus interest at the effective rate at the date of payment.
  2. Once payment is received by the Fund pursuant to (1), the retiree’s spouse shall be qualified for a surviving spouse annuity and the amount paid shall be considered as survivor contributions.