(40 ILCS 5/1A-102)
Sec. 1A-102. Definitions. As used in this Article, the following terms
have the meanings ascribed to them in this Section, unless the context
otherwise requires:
"Accrued liability" means the actuarial present value of future benefit
payments and appropriate administrative expenses under a plan, reduced by the
actuarial present value of all future normal costs (including any participant
contributions) with respect to the participants included in the actuarial
valuation of the plan.
"Actuarial present value" means the single amount, as of a given valuation
date, that results from applying actuarial assumptions to an amount or series
of amounts payable or receivable at various times.
"Actuarial value of assets" means the value assigned by the actuary to the
assets of a plan for the purposes of an actuarial valuation.
"Basis point" means 1/100th of one percent.
"Beneficiary" means a person eligible for or receiving benefits from a
pension fund as provided in the Article of this Code under which the fund is
established.
"Consolidated Fund" means: (i) with respect to the pension funds established under Article 3 of this Code, the Police Officers' Pension Investment Fund established under Article 22B of this Code; and (ii) with respect to the pension funds established under Article 4 of this Code, the Firefighters' Pension Investment Fund established under Article 22C of this Code. "Credited projected benefit" means that portion of a participant's projected
benefit based on an allocation taking into account service to date determined
in accordance with the terms of the plan based on anticipated future
compensation.
"Current value" means the fair market value when available; otherwise, the
fair value as determined in good faith by a trustee, assuming an orderly
liquidation at the time of the determination.
"Department" means the Department of Insurance of the State of Illinois.
"Director" means the Director of the Department of Insurance.
"Division" means the Public Pension Division of the Department of Insurance.
"Governmental unit" means the State of Illinois, any instrumentality or
agency thereof (except transit authorities or agencies operating within or
within and without cities with a population over 3,000,000), and any political
subdivision or municipal corporation that establishes and maintains a public
pension fund.
"Normal cost" means that part of the actuarial present value of all future
benefit payments and appropriate administrative expenses assigned to the
current year under the actuarial valuation method used by the plan (excluding
any amortization of the unfunded accrued liability).
"Participant" means a participating member or deferred pensioner or annuitant
of a pension fund as provided in the Article of this Code under which the
pension fund is established, or a beneficiary thereof.
"Pension fund" means any public pension fund, annuity and benefit fund, or
retirement system established under this Code.
"Plan year" means the calendar or fiscal year on which the records of a given
plan are kept.
"Projected benefits" means benefit amounts under a plan which are expected
to be paid at various future times under a particular set of actuarial
assumptions, taking into account, as applicable, the effect of advancement
in age and past and anticipated future compensation and service credits.
"Supplemental annual cost" means that portion of the unfunded accrued
liability assigned to the current year under one of the following bases:
(1) interest only on the unfunded accrued liability;
(2) the level annual amount required to amortize the |
"Total annual cost" means the sum of the normal cost plus the supplemental
annual cost.
"Transition period" means the period described in Section 22B-120 with respect to the pension funds established under Article 3 of this Code and the period described in Section 22C-120 with respect to the pension funds established under Article 4 of this Code.
"Unfunded accrued liability" means the excess of the accrued liability over
the actuarial value of the assets of a plan.
"Vested pension benefit" means an interest obtained by a participant or
beneficiary in that part of an immediate or deferred benefit under a plan
which arises from the participant's service and is not conditional upon the
participant's continued service for an employer any of whose employees are
covered under the plan, and which has not been forfeited under the terms of the
plan.
(Source: P.A. 101-610, eff. 1-1-20.)
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