(40 ILCS 5/3-127)
(from Ch. 108 1/2, par. 3-127)
The board shall establish and maintain a reserve
to insure the payment of all obligations incurred under this Article
excluding retirement annuities established under Section 3-109.3. The
reserve to be accumulated shall be equal to the estimated total actuarial
requirements of the fund.
If a pension fund has a reserve of less than the accrued liabilities of
the fund, the board of the pension fund, in making its annual report to the
city council or board of trustees of the municipality, shall designate the
amount, calculated as a level percentage of payroll, needed annually to
insure the accumulation of the reserve to the level of the fund's accrued
liabilities over a period of 40 years from July 1, 1993 for pension funds then
in operation, or from the date of establishment in the case of a fund created
thereafter, so that the necessary reserves will be attained over such a period.
(Source: P.A. 91-939, eff. 2-1-01.)