(40 ILCS 5/5-207) (from Ch. 108 1/2, par. 5-207)
Sec. 5-207.
Investment and interest reserve.
All gains from investment and all interest earnings shall be
credited, and all losses from investments shall be charged to this
reserve. From this reserve shall be transferred all amounts due in
interest upon balances existing in the city contribution, the salary deduction,
the prior service annuity, and the gift reserves.
Such amounts as shall be necessary, according to the American
Experience Table of Mortality and interest at 4% per year or the
Combined Annuity Mortality Table with 3% per annum as to the assets or
liabilities to which either Table may be applicable in accordance with
the provisions of this Article, to establish a balance in the annuity
payment reserve equal to the liabilities chargeable thereto (including
among such liabilities and in addition to all other liabilities of such
reserve the present values of all annuities entered upon or fixed, and
not entered upon to be charged to such reserve) shall be transferred to
the annuity payment reserve at least once each year.
That portion of the annual investment earnings on the fund's invested
assets exclusive of gains or losses on sales or exchanges of assets
during the year on the fund's invested assets as required by Section
5-167.2 of this Article shall be transferred from the investment and
interest reserve to the Supplementary Payment Reserve set forth in
Section 5-167.2.
Any balance in the investment and interest reserve shall be either
charged or credited to the Prior Service Annuity Reserve depending on
whether a deficiency or surplus exists in investment and interest
reserve.
(Source: P.A. 81-1536.)
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