(40 ILCS 5/6-203) (from Ch. 108 1/2, par. 6-203)
Sec. 6-203.
Investment and interest reserve.
All gains from investments and all interest earnings shall be
credited to the investment and interest reserve. 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, salary deduction, prior service
annuity, ordinary
disability, and the gift reserves.
Such amounts as may be necessary, according to the American
Experience Table of Mortality and interest at 4% per annum, or the
Combined Annuity Mortality Table with 4% per annum as to the assets or
liabilities to which either table may be applicable in accordance with
this Article for the purpose of establishing 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 as required by this Section shall be transferred from the
investment and interest reserve to the Supplementary Payment Reserve.
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 the investment and interest
reserve.
(Source: P.A. 81-1536.)
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