(40 ILCS 5/11-170) (from Ch. 108 1/2, par. 11-170)
Sec. 11-170. Contributions for age and service annuities for present
employees, future entrants and re-entrants.
(a) Beginning on the effective date and prior to July 1, 1947, 3
1/4%; and beginning on July 1, 1947 and prior to July 1, 1953, 5%; and
beginning July 1, 1953 and prior to January 1, 1972, 6%; and beginning
January 1, 1972, 6 1/2% of each payment of the salary of each present
employee, future entrant and re-entrant, except as provided in subsection (a-5) and (a-10), shall be contributed to the fund
as a deduction from salary for age and service annuity. (a-5) Except as provided in subsection (a-10), for an employee who made the election under item (i) of subsection (d-10) of Section 1-160: prior to the effective date of this amendatory Act of the 100th General Assembly, 6.5%; and beginning on the effective date of this amendatory Act of the 100th General Assembly and prior to January 1, 2018, 7.5%; and beginning January 1, 2018 and prior to January 1, 2019, 8.5%; and beginning January 1, 2019 and thereafter, employee
contributions for those employees who made the
election under item (i) of subsection (d-10) of Section 1-160
shall be the lesser of: (i) the total normal cost, calculated
using the entry age normal actuarial method, projected for the prior
fiscal year for the benefits and expenses of the plan of
benefits applicable to those members and participants who first became members or participants on or after the effective date
of this amendatory Act of the 100th General Assembly and to
those employees who made the election under item (i) of
subsection (d-10) of Section 1-160, but not less than 6.5% of
each payment of salary combined with the employee contributions
provided for in subsection (b) of Section 11-134.1 and Section
11-174 of this Article; or
(ii) the aggregate employee contribution consisting of 9.5% of
each payment of salary combined with the employee contributions
provided for in subsection (b) of Section 11-134.1 and 11-174 of
this Article. For the one-year period beginning with
the first pay period in January of each year the date when the funded ratio
of the fund as determined in the annual actuarial valuation is first determined to have reached the 90% funding
goal, and each subsequent one-year period thereafter for as long as the fund
maintains a funding ratio of 75% or more, employee
contributions for age and service annuity for those employees
who made the election under item (i) of subsection (d-10) of
Section 1-160 shall be 5.5% of each payment of salary. If the
funding ratio falls below 75%, then employee contributions for age and service annuity for those employees who made the
election under item (i) of subsection (d-10) shall revert to the lesser of: (A) the total normal cost, calculated
using the entry age normal actuarial method, projected for the prior
fiscal year for the benefits and expenses of the plan of
benefits applicable to those members and participants who first became members or participants on or after the effective date
of this amendatory Act of the 100th General Assembly and to
those employees who made the election under item (i) of
subsection (d-10) of Section 1-160, but not less than 6.5% of
each payment of salary combined with the employee contributions
provided for in subsection (b) of Section 11-134.1 and Section
11-174 of this Article; or
(B) the aggregate employee contribution consisting of 9.5% of
each payment of salary combined with the employee contributions
provided for in subsection (b) of Section 11-134.1 and 11-174 of
this Article. If the fund once again is determined to
have reached a funding ratio of 75%, the 5.5% of
salary contribution for age and service annuity shall resume.
An employee who made the election under item (ii) of subsection
(d-10) of Section 1-160 shall continue to have the
contributions for age and service annuity determined under
subsection (a) of this Section. If contributions are reduced to less than the
aggregate employee contribution described in item (ii) or item (B) of this
subsection due to application of the normal cost criterion,
the employee contribution amount shall be
consistent for that fiscal year. The normal cost, for the purposes of this subsection (a-5) and subsection (a-10), shall be calculated by an independent enrolled actuary mutually agreed upon by the fund and the City. The fees and expenses of the independent actuary shall be the responsibility of the City. For purposes of this subsection (a-5), the fund and the City shall both be considered to be the clients of the actuary, and the actuary shall utilize participant data and actuarial standards to calculate the normal cost. The fund shall provide information that the actuary requests in order to calculate the applicable normal cost. (a-10) For each employee subject to subsection (c-5) of Section 1-160, 9.5% of each payment of salary shall be contributed to the fund as a deduction from salary for age and service annuity. Beginning January 1, 2018
and each year thereafter, employee contributions
for each employee subject to this subsection (a-10) shall be
the lesser of: (i) the total normal cost, calculated using the entry age normal actuarial method, projected for the prior
fiscal year for the benefits and expenses of the plan of
benefits applicable to those members and participants who first
become members or participants on or after the effective date of this amendatory Act of the 100th General Assembly and to
those employees who made the election under item (i) of
subsection (d-10) of Section 1-160, but not less than 6.5% of
each payment of salary combined with the employee contributions
provided for in subsection (b) of Section 11-134.1 and Section
11-174 of this Article; or (ii) the aggregate
employee contribution consisting of 9.5% of each payment of
salary combined with the employee contributions provided for in
subsection (b) of Section 11-134.1 and Section 11-174 of this
Article. For the one-year period beginning with the first pay period in January of each year after the date when the funded ratio of the fund as determined in the annual actuarial valuation is first determined to have reached the 90% funding goal, and each subsequent one-year period thereafter for as long as the fund maintains a funding ratio of 75% or more, employee contributions for age and service annuity for each employee subject to this subsection (a-10) shall be 5.5% of each payment of salary. If the funding ratio falls below 75%, then employee contributions for age and service annuity for each employee subject to this subsection (a-10) shall revert to the lesser of: (A) the total normal cost, calculated using the entry age normal actuarial method, projected for the prior
fiscal year for the benefits and expenses of the plan of
benefits applicable to those members and participants who first
become members or participants on or after the effective date of this amendatory Act of the 100th General Assembly and to
those employees who made the election under item (i) of
subsection (d-10) of Section 1-160, but not less than 6.5% of
each payment of salary combined with the employee contributions
provided for in subsection (b) of Section 11-134.1 and Section
11-174 of this Article; or (B) the aggregate
employee contribution consisting of 9.5% of each payment of
salary combined with the employee contributions provided for in
subsection (b) of Section 11-134.1 and Section 11-174 of this
Article. If the fund once again is determined to have reached a funding ratio of 75%, the 5.5% of salary contribution for age and service annuity shall resume. If contributions are reduced to less than the
aggregate employee contribution described in item (ii) or item (B) of this
subsection (a-10) due to application of the normal cost
criterion, the employee contribution amount shall be consistent for that fiscal year. Such deductions
beginning on the effective date and prior to June 30, 1947, inclusive
shall be made for a future entrant while he is in service until he
attains age 65, and for a present employee while he is in service until
the amount so deducted from his salary with interest at the rate of 4%
per annum shall be equal to the sum which would have accumulated to his
credit from sums deducted from his salary if deductions at the rate
herein stated had been made during his entire service until he attained
age 65 with interest at 4% per annum for the period subsequent to his
attainment of age 65. Such deductions beginning July 1, 1947 shall be
made and continued for employees while in the service.
(b) Concurrently with each employee contribution, the city shall contribute beginning on the effective date and prior to July 1, 1947, 5 3/4%; and beginning July 1, 1947 and prior to July 1, 1953, 7%; and beginning July 1, 1953 and prior to July 6, 2017, 6% of each payment of such salary until the employee attains age 65. Beginning July 6, 2017, the Fund shall credit sums equal to 6% of each payment of such salary for annuity purposes. The amounts credited for annuity purposes shall not be credited for refund purposes.
(c) Each employee contribution made prior to the date age and
service annuity for an employee is fixed and each corresponding city
contribution shall be allocated to the account of and credited to the
employee for whose benefit it is made.
(d) Notwithstanding Section 1-103.1, the changes to this Section made by this amendatory Act of the 100th General Assembly apply regardless of whether the employee was in active service on or after the effective date of this amendatory Act.(Source: P.A. 100-23, eff. 7-6-17; 100-1166, eff. 1-4-19.) |