(40 ILCS 5/7-204) (from Ch. 108 1/2, par. 7-204)
Sec. 7-204.
Municipality reserves.
(a) Except as provided in paragraph (b) of this Section, each
participating municipality and its instrumentalities, and each
participating instrumentality, shall be treated as an independent unit
within the fund, except that if it has any sheriff's law enforcement
employees, it shall be treated as 2 independent units, one
for its sheriff's law enforcement employees and the second for its other
employees. Separate municipality reserves shall be maintained in such form
and detail as is necessary to show the net accumulated balances of each
municipality, created or arising under this Article.
(b) In the event of termination and dissolution of any participating
municipality or participating instrumentality and its obligations are not
assumed or transferred by law to another municipality, any net debit or
credit balance remaining in the reserve account of such municipality, or
participating instrumentality, shall be transferred to a Terminated
Municipality Reserve Account which shall be used to fund any future
benefits of its employees arising out of service with the terminated
municipality or participating instrumentality.
Any deficiency arising in the Terminated Municipality Reserve Account
shall be eliminated by a contribution by all remaining municipalities and
participating instrumentalities at a uniform percent of payroll, to be
determined, collected with other contributions required under Section 7-172.
(c) The municipality reserve for each municipality or participating
instrumentality that has any sheriff's law enforcement
employees shall be divided into 2
reserves. A reserve for the sheriff's law enforcement employees shall be
allocated an amount in the same proportion to the total amount in reserve
as the total number of sheriff's law enforcement employees is to the total
participating employees of the municipality or participating
instrumentality
at that date. The remainder shall be
allocated to the reserve for other employees.
(Source: P.A. 87-740.)
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