(40 ILCS 5/8-221) (from Ch. 108 1/2, par. 8-221)
Sec. 8-221.
Investment and interest reserve.
(1) Gains from investments and interest earnings shall be credited to
this reserve. Losses from investments shall be charged to it. From this
reserve shall be transferred amounts due in interest upon balances existing
in the city contribution, the salary deduction, the prior service annuity,
and the gift reserves.
(2) Amounts necessary according to the American Experience Table of
Mortality and interest at the rate of 4% per annum or the Combined Annuity
Mortality Table and interest at the rate of 3% per annum, as to those
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 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.
(3) 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 specified in
Section 8-137.1 of this Article, shall be transferred from the investment
and interest reserve to the Supplementary Payment Reserve set forth in
Section 8-137.1.
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 said investment and interest
reserve.
(Source: P.A. 76-1302.)
|