(40 ILCS 5/1-116) (from Ch. 108 1/2, par. 1-116)
Sec. 1-116.
Federal contribution and benefit limitations.
(a) This Section applies to all pension funds
and retirement systems established under this Code.
(a-5) All pension funds and retirement systems established under this
Code shall comply with the applicable contribution and benefit limitations
imposed by Section 415 of the U.S. Internal Revenue Code of 1986 for tax
qualified plans under Section 401(a) of that Code.
(b) If any benefit payable by a pension fund or retirement system
subject to this Section exceeds the applicable benefit limits set by
Section 415 of the U.S. Internal Revenue Code of 1986 for tax qualified
plans under Section 401(a) of that Code, the excess shall be payable only
from an excess benefit fund established under this Section in accordance
with federal law.
(c) An excess benefit fund shall be established by any pension fund or
retirement system subject to this Section that has any member eligible to
receive a benefit that exceeds the applicable benefit limits set by Section
415 of the U.S. Internal Revenue Code of 1986 for tax qualified plans under
Section 401(a) of that Code. Amounts shall be credited to the excess benefit
fund, and payments for excess benefits made from the excess benefit fund, in
a manner consistent with the applicable federal law.
(d) For purposes of matters relating to the benefit limits set by Section
415 of the U.S. Internal Revenue Code of 1986, the limitation year may be
defined by each affected pension fund or retirement system for that fund or
system.
(Source: P.A. 90-19, eff. 6-20-97; 91-887, eff. 7-6-00.)
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