Source: http://www.ctaretirement.org/retirement-plan/plan-summary/
Timestamp: 2019-04-23 02:20:19+00:00

Document:
THIS AGREEMENT, made in triplicate as of June 1, 1949, by and between CHICAGO TRANSIT AUTHORITY, a municipal corporation created by the Metropolitan Transit Authority Act of Illinois, party of the first part, and LOCALS 241 and 308 of the AMALGAMATED TRANSIT UNION, formerly known as the AMALGAMATED ASSOCIATION OF STREET, ELECTRIC RAILWAY AND MOTOR COACH EMPLOYEES OF AMERICA, party of the second part, as amended.
The retirement and disability allowance plan which is the subject of this agreement shall be known as “RETIREMENT PLAN FOR CHICAGO TRANSIT AUTHORITY EMPLOYEES" and is sometimes referred to in this agreement as “this Plan" or “the Plan."
The object of the Plan is to provide retirement allowances in case of old age or disability for the eligible employees of the Chicago Transit Authority who are represented by said party of the second part, subject to the conditions hereinafter set forth, and for other employees to whom the Plan may be later extended as herein provided, subject to the conditions herein set forth.
"Authority" shall mean Chicago Transit Authority.
"Association" or "Amalgamated" shall mean both Local 241 and Local 308 of the Amalgamated Transit Union.
An individual who on May 16, 1980 or thereafter is first employed by the Authority who has completed twelve months of continuous service with the Authority and who is classified by the Authority on its employment rolls as a full time permanent employee.
"Effective date of the Plan" shall mean June 1, 1949.
"Past Service" shall mean the continuous service with the Authority, or any of its predecessor public utilities, rendered prior to the effective date of this Plan.
"Future Service" shall mean continuous service with the Authority from and after the effective date of this Plan.
Authorized leaves of absence and authorized absence because of sickness or injury.
Periods during which no services were rendered because of strikes or lockouts.
Lay off due to reduction in force if the lay-off occurred after 1930, and the employee was called back to work and pursuant to such recall returned to work prior to 1937. This subparagraph 5 applies only to employees who retire on or after January 1, 1956.
Not currently applicable. Historical text of provision available in Board's files.
For such individuals in full-time positions, the total earnings paid to the individual for all service in such positions both before and after December 1, 1989, by the Association or its International Office, or by the Office or International Office of the bargaining agent representing employees of the Authority; provided that the Authority and the individual make contributions to the Plan based on such total earnings at the rates provided by Paragraph 7.1 for all service with the Association or its International Office, or with the Office or International Office of any other bargaining agent representing employees of the Authority.
For such individuals in part-time positions, the total earnings paid to the individual by the Authority or by the Board plus the total earnings paid to the individual for service in such part-time positions both before and after December 1, 1989, up until December 31, 2004 by the Association or its International Office, or by the Office or International Office of the bargaining agent representing employees of the Authority; provided that the Authority and the individual make contributions to the Plan based on all of the earnings from such part-time positions at the rates provided by Paragraph 7.1.
Effective January 1, 2005 for any such Employee recognized as a part- time Union official, "Compensation" shall include Total Earnings paid to the individual by the Authority plus earnings paid by the individual's Union to the part-time Union official for work performed in furtherance of the bargaining relationship between the individual's Union and the Authority, provided that such work is performed on a "lost-time" basis during the individual's Authority regular work schedule and provided that such work is compensated at a rate no higher than 10% more than the Authority's hourly rate for the individual's job classification to be calculated on a monthly basis. A part-time Union official shall not receive pensionable earnings from his or her Union for the same time the individual performed work or received Compensation from the Authority. A part-time Union official shall not receive pensionable earnings from his or her Union for any work performed on a paid Authority holiday, vacation day, or on a day on which the individual has reported off sick, or for any work performed while the individual is in Area 605.
Subject to the limitations and requirements set forth in the preceding paragraph hereof, services by a part-time Union official which are in "furtherance of the bargaining relationship between the individual's Union and the Authority" shall include investigating and handling grievances and arbitrations for Authority bargaining unit members, preparing for and or participating in collective bargaining with the Authority, lobbying governmental bodies on matters affecting the Authority, attending meetings of the Women's Conference, Black Caucus and the Latino Caucus, attending educational seminars or conferences which have a primary purpose of educating Union officers and developing their professional relationship with the Authority, attending the individual's Union executive board meetings and the ATU triennial convention, and administering the collective bargaining agreement, including matters relating to picks.
For any such individual recognized as a part-time Union official, "Compensation" shall not include among other things payments by the individual's Union in the form of bonuses or "Barley days" and for the following activities which are not in furtherance of the bargaining relationship between the individual's Union and the Authority: Attendance at and/or preparation for parades, picnics, and other recreational, sporting or social events including attendance at committee meetings for the planning of such events, attending PAC meetings, work connected with the review of audits of the individual's Union, internal Union administrative work, charitable activities, and delivery of food or gifts to schools or similar institutions, and monthly membership meetings.
The Association and any other bargaining agent representing Employees of the Authority shall provide to the Authority a written list of the part-time Union officials whose "Compensation" is defined in this Section 3.9(b) and shall notify the Authority of any changes to the list as they occur. Such part-time Union officials shall include only elected part-time officials and the official positions that have been historically recognized as being "part-time positions" or the equivalent of such positions within the meaning of this Section 3.9(b).
The President and the Financial Secretary of the Association, and the principal officer of any other bargaining agent representing Employees of the Authority will document monthly to the Authority, on a form provided by the Authority - a copy of which is attached hereto -, the earnings of the part-time official during the preceding month claimed to be pensionable, indicating the time of day each claimed pensionable activity began and ended, the nature of the activity, and the hourly wage rate claimed appropriate. The President and Financial Secretary of the part-time official's Union shall certify that the contents of the document are true, include only pensionable activities as defined herein, and include no non-pensionable earnings as defined herein.
"Fund" shall mean the moneys and property due to or in the hands of the Trustee including payments by the employees and the Authority plus the income or other proceeds from investments, less disbursements for benefits and expense.
"Trustee" shall mean the bank or trust corporation selected to administer the Fund.
The masculine pronoun wherever used shall include the feminine pronoun, in the singular, and the plural.
Subject to Paragraph 4.2., all employees, as defined above, shall come under this Plan and continue as contributing employees so long as they are in the employ of the Authority in an occupation or position to which this agreement applies or may hereafter be made to apply.
The finding, award, order, or agreement shall not be given effect with regard to any such period of time or compensation if the Board in its sole discretion determines that such action has the potential to cause the Plan to fail to satisfy any of the requirements of Section 401(a) of the Internal Revenue Code of 1986 or the regulations thereunder applicable to the Plan.
Bargaining unit members may participate in the CTA 401(k) program but must continue to participate in this Plan.
CTA non-vested/non-bargained for employees may voluntarily opt out of this Plan and/or participate in such other plans as the CTA may offer.
The Authority shall have the right to establish, in addition to this Plan, one (1) or more retirement plans as provided for in § 22-101 of the Illinois Pension Code.
Effective December 12, 1994, notwithstanding any provision of this Plan to the contrary, contributions, benefits and service credit with respect to qualified military service will be provided in accordance with Section 414(u) of the Code (Amended 1-8-03).
Notwithstanding anything herein to the contrary, if an employee dies on or after January 1, 2007, while in the Uniformed Services of the United States and while entitled to reemployment rights under the Uniformed Services Employment & Reemployment Rights Act of 1994 ("USERRA"), his or her beneficiaries are entitled to any additional benefits provided under the plan (other than benefit accruals relating to the period of qualified military service) as if the participant had resumed employment on the day before the date of death and then terminated employment on account of death.
Each Trustee shall have the rights, privileges, authority and obligations as are usual and customary for such fiduciaries.
All members of the Board shall have alternates who shall be appointed in the same manner provided in Paragraph 5.1.
Each member of the Board shall cast individual votes and a majority vote shall be final and binding upon all interested parties, provided that the Board may require a supermajority vote with respect to the investment of the assets of the Plan. The Board, by a vote of at least two-thirds of the members, may transfer investment management to the Illinois State Board of Investment.
The Board shall hold meetings at such times as it shall determine, but not less than one (1) meeting each month. It shall make an annual report to the Authority and the Association, and shall make such other reports of the operation of the Plan as it shall deem necessary. At least once a year the Board shall have an audit made of the funds forwarded to, disbursed and held by the Trustee by a recognized firm of certified public accountants. A statement of the results of such audit shall be forwarded to the Auditor General, the Authority and the Association and the duly appointed representatives of any other employees no later than September 30.
All necessary expenses incurred by the Board shall be certified by the Board to, and paid by, the Trustee out of the funds held by it.
Members of the Board shall not be personally liable for any act done by them in performance of their duties as members of the Board and shall be indemnified by the Fund against any and all liability and expenses reasonably incurred in connection with any action to which they may be party by reason of their being members of the Board, provided, however, that the foregoing shall not apply to any members of the Board who shall be adjudged guilty of misconduct.
Effective January 1, 1993, the annual investment return assumption will be increased from 8.25% to 9%, and the salary increase assumption will be increased from 5% to 5.5%. The non-economic assumptions will be modified to the extent deemed appropriate by the Plan's actuary.
Effective January 1, 1993, the amortization period for unfunded past service liabilities will be increased from 30 to 40 years.
Effective January 1, 2000, the Plan's adjusted asset value for funding purposes will be re-established to equal the market value of the assets of the Fund.
Effective January 1, 2001, and each year thereafter, the valuation method used for funding purposes in the years immediately preceding January 1, 2000 will be reemployed, based on the asset value established effective January 1, 2000.
Effective January 1, 2000, the actuarial cost method will be changed from the Entry Age Normal Cost Method to the Projected Unit Credit Cost Method.
By September 15 of each year beginning in 2009, the Board shall have an annual actuarial valuation and report prepared for the Plan by the actuary retained by the Board. The projected funded ratio of the total assets of the Plan to its total actuarially determined liabilities, and resulting contribution requirements, shall be determined in a manner consistent with statutory guidelines.
The Board shall provide the Auditor General an annual statement containing the information specified in Section 1A-109 of the Illinois Pension code no later than September 30.
The Authority shall keep all records, compile all data, accept all written communications from participating employees and their beneficiaries addressed to the Board and submit such communications to the Board for processing in accordance with the provisions of this Plan, so far as its employees are concerned. The actual cost and expense to the Authority in performing such duties shall be certified by the Authority to the Board and upon approval by the Board shall be paid by the Trustee out of the Fund.
The Board shall have the right at all times to call for additional information concerning any or all applications forwarded to the Board and to examine all records or data pertaining to the Plan.
From January 18, 2008 through December 31, 2008, all participating employees shall contribute to the Plan in an amount not less than 6% of compensation, and the Authority shall contribute to the Plan in an amount not less than 12% of compensation.
Beginning January 1, 2009 the Authority shall make contributions to the Plan in an amount equal to twelve percent (12%) of compensation and participating employees shall make contributions to the Plan in an amount equal to six percent (6%) of compensation.
For the period ending December 31, 2040, the amount paid by the Authority in any year with respect to debt service on bonds issued for the purposes of funding a contribution to the Retirement Plan under Section 12c of the Metropolitan Transit Authority Act, other than debt service paid with the proceeds of bonds or notes issued by the Authority for any year after calendar year 2008, shall be treated as a credit against the amount of required contribution to the Plan by the Authority under subparagraph (g) for the following year up to an amount not to exceed 6% of compensation paid by the Authority in that following year.
By September 15 of each year beginning 2009 and ending on December 31, 2039, on the basis of a report prepared by an enrolled actuary retained by the Plan, the Board shall determine the estimated funded ratio of the total assets of the Plan to its total actuarially determined liabilities. A report containing that determination and the actuarial assumptions on which it is based shall be filed with the Authority, the representatives of its participating employees, the Auditor General of the State of Illinois, and the Regional Transportation Authority. If the funded ratio is projected to decline below 60% in any year before 2040, the Board shall also determine the increased contribution required each year as a level percentage of payroll over the years remaining until 2040 using the projected unit credit actuarial cost method so the funded ratio does not decline below 60% and include that determination in its report. If the actual funded ratio declines below 60% in any year prior to 2040, the Board shall also determine the increased contribution required each year as a level percentage of payroll during the years after the then current year using the projected unit credit actuarial cost method so the funded ratio is projected to reach at least 60% no later than 10 years after the then current year and include that determination in its report. Within 60 days after receiving the report, the Auditor General shall review the determination and the assumptions on which it is based, and if he finds that the determination and the assumptions on which it is based are unreasonable in the aggregate, he shall issue a new determination of the funded ratio, the assumptions on which it is based and the increased contribution required each year as a level percentage of payroll over the years remaining until 2040 using the projected unit credit actuarial cost method so the funded ratio does not decline below 60%, or, in the event of an actual decline below 60%, so the funded ratio is projected to reach 60% by no later than 10 years after the then current year. If the Board or the Auditor General determine that an increased contribution is required to meet the funded ratio required by this subparagraph, effective January 1 following the determination or 30 days after such determination, whichever is later, one-third of the increased contribution shall be paid by participating employees and two-thirds by the Authority, in addition to the contributions required by subparagraph (g).
For the period beginning 2040, the minimum contribution to the Plan for each fiscal year shall be an amount determined by the Board to be sufficient to bring the total assets of the Plan up to 90% of its total actuarial liabilities by the end of 2059. Participating employees shall be responsible for one-third of the required contribution and the Authority shall be responsible for two-thirds of the required contribution. In making these determinations, the Board shall calculate the required contribution each year as a level percentage of payroll over the years remaining to and including fiscal year 2059 using the projected unit credit actuarial cost method. A report containing that determination and the actuarial assumptions on which it is based shall be filed by September 15 of each year with the Authority, the representatives of its participating employees, the Auditor General of the State of Illinois and the Regional Transportation Authority. If the funded ratio is projected to fail to reach 90% by December 31, 2059, the Board shall also determine the increased contribution required each year as a level percentage of payroll over the years remaining until December 31, 2059 using the projected unit credit actuarial cost method so the funded ratio will meet 90% by December 31, 2059 and include that determination in its report. Within 60 days after receiving the report, the Auditor General shall review the determination and the assumptions on which it is based and if he finds that the determination and the assumptions on which it is based are unreasonable in the aggregate, he shall issue a new determination of the funded ratio, the assumptions on which it is based and the increased contribution required each year as a level percentage of payroll over the years remaining until December 31, 2059 using the projected unit credit actuarial cost method so the funded ratio reaches no less than 90% by December 31, 2059. If the Board or the Auditor General determines that an increased contribution is required to meet the funded ratio required by this subsection, effective January 1 following the determination or 30 days after such determination, whichever is later, one-third of the increased contribution shall be paid by participating employees and two-thirds by the Authority, in addition to the contributions required by subparagraph (g).
Beginning in 2060, the minimum contribution for each year shall be the amount needed to maintain the total assets of the Plan at 90% of the total actuarial liabilities of the Plan, and the contribution shall be funded two-thirds by the Authority and one-third by the participating employees in accordance with 40 ILCS 5/22-101(e)(5).
The Board shall certify to the Governor, the General Assembly, the Auditor General, the Board of the Regional Transportation Authority, and the Authority at least 90 days prior to the end of each fiscal year the amount of the required contributions to the Plan for the next Plan Year. The certification shall include a copy of the actuarial recommendations upon which it is based. In addition, copies of the certification shall be sent to the Commission on Government Forecasting and Accountability and the Mayor of Chicago.
The contributions by all participating employees receiving compensation from the Authority shall be made by means of deductions on each pay day.
Officers and representatives of the Association or its International Office, whether in full time or part time positions, who are employees of the Authority on leave of absence, shall transmit their contributions each month to the Authority, except insofar as any part thereof has been deducted under Paragraph 7.2.
The contributions required of employees pursuant to this Section 7 shall be picked up (within the meaning of Section 414(h)(2) of the Internal Revenue Code of 1986, as amended) by the Authority. Said contributions, although designated as employee contributions for determining employee rights under the Plan, shall be paid by the Authority in lieu of contributions by the employees. Said contributions shall be picked up pursuant to Paragraph 7.2 by a reduction in compensation paid by the Authority and shall be treated as employer contributions in determining tax treatment under the Internal Revenue Code of 1986 as amended. An employee shall not have the option of choosing to receive these contributions directly instead of having them paid by the Authority to the Plan. Picked-up employee contributions shall be included in the term "total earnings."
One and seventy-five hundredths percent (1.75%) of his “Average Annual Compensation in the highest four (4) completed Plan Years" for each year (including fractions thereof to completed calendar months) of continuous service (i) from and after the effective date of the Plan and prior to his normal retirement date or, (ii) if the employee retires at a later date than his normal retirement date in accordance with Paragraph 9.2, from and after the effective date of the Plan and prior to the date he actually retires subject to limitation by Paragraph 9.3. (Amended 9-22-87).
One and eighty hundredths percent (1.80%) of his "Average Annual Compensation in the highest four (4) completed Plan Years" for each year (including fractions thereof to completed calendar months) of continuous service (i) from and after the effective date of the Plan and prior to his normal retirement date or, (ii) if the employee retires at a later date than his normal retirement date in accordance with Paragraph 9.2, from and after the effective date of the Plan and prior to the date he actually retires subject to limitation by Paragraph 9.3.
Two percent (2%) of his "Average Annual Compensation in the highest four (4) completed Plan Years" for each year (including fractions thereof to completed calendar months) of continuous service (i) from and after the effective date of the Plan and prior to his normal retirement date or, (ii) if the employee retires at a later date than his normal retirement date in accordance with Paragraph 9.2, from and after the effective date of the Plan and prior to the date he actually retires subject to limitation by Paragraph 9.3.
Two and fifteen hundredths percent (2.15%) of his "Average Annual Compensation in the highest four (4) completed Plan Years" for each year (including fractions thereof to completed calendar months) of continuous service (i) from and after effective date of the Plan and prior to his normal retirement date or, (ii) if the employee retires at a later date than his normal retirement date in accordance with Paragraph 9.2, from and after the effective date of the Plan and prior to the date he actually retires subject to limitation by Paragraph 9.3.
Two and forty hundredths percent (2.40%) of this "Average Annual Compensation in the highest four (4) completed Plan Years" for each year (including fractions thereof to completed calendar months) of continuous service (i) from and after the effective date of the Plan and prior to his normal retirement date, or (ii) if the employee retires at a later date than his normal retirement date in accordance with Paragraph 9.2, from and after the effective date of the Plan and prior to the date he actually retires subject to limitation by Paragraph 9.3.
For the purposes of subparagraphs (6) and (7) of this Paragraph, the Funded Ratio shall be the Adjusted Assets divided by the Actuarial Accrued Liability developed in accordance with Statement #25 promulgated by the Government Accounting Standards Board and the actuarial assumptions described in the Plan. The Adjusted Assets will be calculated based on the methodology described in the Plan.
Effective January 1, 2000 the old age retirement allowance provided for in this Section shall in no event be in excess of seventy (70.0) per cent of the employee's average annual compensation in the highest four (4) completed plan years as defined in Paragraph 3.9. No employee shall be eligible to receive a retirement allowance unless he shall have been employed for at least three (3) years of continuous service, as above defined.
The normal retirement date shall be the first day of the month following the employee's sixty-fifth (65th) birthday at which date the employee shall be 100% vested in his retirement allowance.
If any employee continues in the service of the Authority after attainment of the normal retirement date, the old age retirement allowance payable to such employee shall not commence until after his actual retirement.
An employee who continues employment after his normal retirement date but who does not continue in the service of the Authority after January 1, 1988 shall not make the contributions prescribed in Section 7 nor shall the Authority make any contributions with respect to the compensation of such employee for employment after his normal retirement date. If such employee reaches age sixty-five (65) after the effective date of the Plan, he shall receive no credit under Paragraph 8.1(1)(b), 8.1(2)(b), 8.1(3)(b), 8.1(4)(b), 8.1(5)(b), 8.1(6)(b), 8.1(7)(b) or 8.1(8)(b) for any service after age sixty-five (65).
whereupon said retired employee shall receive an old age retirement allowance for life reduced in accordance with Paragraph 10.2.
Any employee in good standing who was first hired by the Authority on or after January 18, 2008, may retire voluntarily after he has attained the age of fifty-five (55) years and shall have been employed for at least 10 years of continuous service whereupon said retired employee shall receive an old-age retirement allowance for life reduced in accordance with Paragraph 10.2.
Effective September 5, 2001, in the event of such early retirement after the month of December, 1983, the employee shall receive his earned retirement allowance, computed at and up to such early retirement date, reduced by five percent (5%) for each full year or fraction thereof below age sixty-five (65); provided, however, that for an employee first hired on or before September 5, 2001, the employee's earned retirement allowance computed at and up to such early retirement date shall not be reduced if he shall retire on or after the 1st day of the month after the completion of twenty-five (25) or more years of continuous service, provided further that, for an employee first hired after September 5, 2001, the employee's earned retirement allowance computed at and up to such early retirement date shall not be reduced if he shall retire on or after the 1st day of the month after the completion of twenty-five (25) or more years of continuous service and having attained age 55. For an employee first hired on or after January 18, 2008, the employee's earned retirement allowance computed at and up to such early retirement date shall not be reduced if he shall retire on or after the 1st day of the month after the completion of twenty-five (25) or more years of continuous service and having attained age 64.
The provisions of this Paragraph 10.4 incorporate into the Plan the provisions of Part VIII.L. of the Interest Arbitration Award of December 23, 1993 and shall be interpreted and administered by the Committee consistent with said provisions of the Interest Arbitration Award, and may be collectively referred to as the "Voluntary Early Retirement Incentive Program."
An employee who has twenty-five (25) years or more of continuous service on or before July 31, 1994 must submit an election to retire under this Paragraph 10.4 during the period from January 1, 1994 to July 31, 1994.
An employee who first obtains twenty-five (25) years of continuous service on or after August 1, 1994, and prior to or on December 31, 1995, must submit an election to retire under this Paragraph 10.4 during the period from August 1, 1994 to February 28, 1995.
An employee eligible to elect voluntary retirement under this Paragraph 10.4 who fails to make an election during the applicable period specified in (a) or (b) above shall not be entitled to make any election to voluntarily retire and to receive the benefits provided under this Paragraph 10.4.
An employee must file an election under this Paragraph 10.4 with the Authority in writing on the form or forms provided by the Authority, including any waivers which the Authority may require. All elections must be submitted and will be subject to approval by the Authority subject to such rules and procedures as the Authority may promulgate.
The Authority has sole discretion and right to determine the timing for, and number of, employees allowed to retire each month under this Paragraph 10.4, subject to such criteria and methodology as the Authority may promulgate; provided that all eligible employees making valid elections under this Paragraph 10.4 shall be allowed to retire as soon as possible but not later than December 31, 1995.
An employee retiring under this Paragraph 10.4 at the retirement date determined by the Authority, as provided for herein, shall receive an annual retirement allowance paid in equal monthly installments for life which shall be equal to two and five hundredths percent (2.05%) of his "Average Annual Compensation in the highest four (4) completed Plan Years" for each year (including fractions thereof to completed calendar months) of continuous service (i) from and after the effective date of the Plan and prior to his normal retirement date or, (ii) if the employee retires at a later date than his normal retirement date in accordance with Paragraph 9.2, from and after the effective date of the Plan and prior to the date he actually retires subject to limitation by Paragraph 9.3.
The retirement allowance provided for in this Paragraph 10.4 shall in no event be in excess of sixty-six and five-tenths percent (66.5%) of the employee's average annual compensation in the highest four (4) completed plan years as described in Paragraph 3.9.
For purposes of calculating retirement allowances under this Paragraph 10.4, notwithstanding anything to the contrary in Paragraph 3.9 of the Plan, an employee may elect to use the employee's total Compensation, as defined in the Plan, in the calendar year in which the employee retires in the determination of "Average Annual Compensation in the highest four (4) Completed Plan Years" as provided for under Paragraph 3.9.
The provisions of this Paragraph 10.5 incorporate into the Plan the provisions of the Collective Bargaining Agreement and shall be interpreted and administered by the Committee consistent with said provisions of the Collective Bargaining Agreement, and may be collectively referred to as the "1997 Voluntary Early Retirement Incentive Program."
An employee who has twenty-five (25) years or more of continuous service on or before June 30, 1997 must submit an election to retire under this Paragraph 10.5 during the period from March 1, 1997 to June 30, 1997.
An employee who first obtains twenty-five (25) years of continuous service on or after July 1, 1997, and prior to or on December 31, 1999, must submit an election to retire under this Paragraph 10.5 during the period from July 1, 1997 to February 28, 1998.
An employee eligible to elect voluntary retirement under this Paragraph 10.5 who fails to make an election during the applicable period specified in (a) or (b) above shall not be entitled to make any election to voluntarily retire and to receive the benefits provided under this Paragraph 10.5.
An employee must file an election under this Paragraph 10.5 with the Authority in writing on the form or forms provided by the Authority, including any waivers which the Authority may require. All elections must be submitted and will be subject to approval by the Authority subject to such rules and procedures as the Authority may promulgate.
The Authority has sole discretion and right to determine the timing for, and the number of, employees allowed to retire each month under this Paragraph 10.5, subject to such criteria and methodology as the Authority may promulgate; provided that all eligible employees making valid elections under this Paragraph 10.5 shall be allowed to retire as soon as possible but not later than December 31, 1999.
An employee retiring under this Paragraph 10.5 at the retirement date determined by the Authority, as provided for herein, shall receive an annual retirement allowance paid in equal monthly installments for life which shall be equal to two and four tenths percent (2.40%) of his "Average Annual Compensation in the highest four (4) completed Plan Years" for each year (including fractions thereof to completed calendar months) of continuous service (i) from and after the effective date of the Plan and prior to his normal retirement date or, (ii) if the employee retires at a later date than his normal retirement date in accordance with Paragraph 9.2, from and after the effective date of the Plan and prior to the date he actually retires subject to limitation by Paragraph 9.3.
The retirement allowance provided for in this Paragraph 10.5 shall in no event be in excess of seventy percent (70%) of the employee's average annual compensation in the highest four (4) completed plan years as described in Paragraph 3.9.
For purposes of calculating retirement allowances under this Paragraph 10.5, notwithstanding anything to the contrary in Paragraph 3.9 of the Plan, an employee may elect to use the employee's total compensation, as defined in the Plan, in the calendar year in which the employee retires in the determination of "Average Annual Compensation in the highest four (4) Completed Plan Years" as provided for under Paragraph 3.9.
Notwithstanding anything in this Paragraph 10.5 to the contrary, an employee otherwise eligible to elect to retire under Paragraph 10.5, but who applied to retire effective January 1, 1997 and thereafter did or did not retire but revoked such retirement or retirement application prior to February 28, 1997, may elect to voluntarily retire under t his Paragraph 10.5; subject to the right of the Authority to require the employee, by delivery of notice to the employee prior to March 1, 1997, to accept a later scheduled retirement date determined by the Authority as provided under this Paragraph 10.5.
Effective January 18, 2008, no early retirement incentive shall be offered to participants of the Plan unless the Funded Ratio of the Plan is at least 80% or more.
A former employee as described in Paragraph 11.1 shall be entitled to a deferred vested old age retirement allowance only if he shall elect not to receive the refund of his contributions, with interest, as otherwise provided under Paragraph 15.2 hereof. If the former employee shall subsequently rescind such election at any time prior to the commencement of payment of his allowance, then there shall be payable to him an amount as provided by Paragraph 15.2 hereof which payment shall be in lieu of all further rights to a deferred vested old age retirement allowance. The election required by this paragraph and, if applicable, the rescission thereof, shall be in writing on a properly executed form provided for that purpose and filed with the Board. Notwithstanding the foregoing provisions of this Paragraph 11.2, if the former employee shall die prior to the commencement of payment of his deferred vested old age retirement allowance, the refund of his contributions shall be made as otherwise provided in Paragraph 15.2.
The monthly amount of deferred vested old age retirement allowance shall be computed in the manner provided in Paragraph 8.1 above, as in effect on the date the employee's continuous service ends, based on the period of his continuous service and his compensation to such date.
Application for commencement of payment of the deferred vested old age retirement allowance shall be filed with the Secretary not earlier than ninety (90) days prior to the former employee's sixty-fifth (65th) birthday. Payment of the deferred vested retirement allowance to a former employee who remains eligible therefore shall be payable monthly commencing with the month next following the month in which the former employee (i) attains age sixty-five (65) or (ii) files the application for commencement of payments, whichever last occurs, and shall be continued to be paid through the month in which his death occurs. In no event shall retroactive payments be made with respect to the month in which the application is filed with the Secretary or any previous month.
Notwithstanding any other provision hereof, no benefits shall be payable pursuant to Paragraph 15.7 in respect of a former employee receiving a deferred vested old-age retirement allowance.
If a former employee entitled to a deferred vested old age retirement allowance shall be re-employed by the Authority as a new employee (i.e., he is not reinstated within the terms of Paragraph 3.7 (3)), he shall retain the right to the deferred vested old-age retirement allowance as described in this Section 11 in addition to any allowance to which he may become entitled under the Plan attributable to his period of re-employment.
No employee shall be entitled to receive a disability allowance under the Plan when he declines to permit a physician selected by the Board to examine or re-examine him or materially hinders an investigation ordered by the Board.
Retirement and disability allowances, as specified herein, shall be paid on the last day of each month for which such allowance is due.
The normal form of payment of old-age retirement allowances, as specified in Paragraph 8.1., Paragraph 10.1 and Paragraph 13.1 hereof is a monthly benefit payable for the remainder of the employee's lifetime. The normal form of payment of retirement allowance in the amount determined pursuant to Section 8 or Section 10 hereof shall apply to an employee (i) who shall have no living spouse at the date of his or her retirement, or (ii) who, although legally married at his or her retirement date, shall elect to have his or her retirement allowance paid in the normal form.
If an employee shall have a spouse to whom the employee is legally married at his or her retirement date - and if the employee then shall have failed to elect otherwise - such employee shall be deemed to have elected Option A as described below, to have designated said spouse as contingent annuitant with 1/2 as the specified fraction of reduced monthly amount of retirement allowance applicable to the spouse's benefits and to have complied in all other respects with the requirements of this Paragraph 13.2.
OPTION A: A reduced monthly retirement allowance payable to the retired employee during his or her remaining lifetime and, if such retired employee shall predecease the spouse designated by such retired employee in accordance with the provisions hereof, all or a specified fractional part - 1/2 or 2/3 thereof, as specified by the employee in his election - of such reduced monthly amount payable to the spouse for the then remainder of his or her lifetime.
If the said designated spouse shall predecease the retired employee, the monthly amount payable to such retired employee for the then remainder of his or her lifetime shall be that monthly amount which would have been payable had no option been elected.
Each request for an optional form of payment - and, in the case of an employee legally married at his or her retirement date, the request to have his or her retirement allowance paid in the normal form - must be in writing, on a properly executed form provided for that purpose and filed with the Board. Each such form must specify the scheduled commencement date of retirement allowance payments under the form elected. An employee may, at any time prior to his retirement date, elect to cancel or change the optional form of payment previously approved by the Board in respect of him, but each such change shall be deemed a new election and shall be treated as such in accordance with the provisions of this Section.
Retirement allowance payments under the optional form of payment will be payable as of the last day of each month. The first such payment to the retired employee will be paid on the last day of the month within which the employee's retirement date occurs, and the last such payment will be the payment due as of the last day of the month coincident with or next preceding the date of the retired employee's death. If the retired employee shall predecease his or her spouse, and such spouse shall have been designated (or shall be deemed to have been so designated) in accordance with the provisions hereof, such reduced benefit or the applicable fraction thereof, as specified by the retired employee, shall be payable to such spouse commencing on the last day of the month next succeeding the month in which the last payment was due to the retired employee and ending with the last day of the month coincident with or next preceding the date of the surviving spouse's death.
If the designated spouse shall predecease a retired employee for whom Option B shall have become effective, the increased monthly amount shall become payable to the retired employee commencing on the last day of the month in which the designated spouse's death occurs and continue to be paid through the month in which the retired employee's death occurs.
If the continuous service of an employee shall terminate, or if the employee shall die prior to his retirement hereunder, the optional form elected by such employee shall be cancelled automatically.
If the spouse designated by the employee shall die prior to the employee's retirement hereunder, the optional form of payment elected shall be cancelled automatically and a monthly retirement allowance of the normal form and amount shall be applicable to such employee upon his retirement hereunder, unless, prior to his retirement, a new election shall have been effected in accordance with the provisions of this Section.
If an employee shall have a living spouse to whom he or she is legally married on the date the election of the optional form of payment is filed with the Board, such spouse shall be designated the contingent annuitant under such election. If any other person shall be designated, the election shall be invalid for all purposes hereof.
Effective July 1, 2008, a one-time ad hoc pension adjustment of not more than $2,500,000 shall be effective for retirees and or surviving spouses allocated as determined by the Board.
In case of incompetency, either mental or physical, of any person eligible to receive payments under the provisions of the Plan, payments shall be made to such person or institution that has satisfied the Board as to his or its right to receive the payments for said eligible person.
No employee shall be entitled to borrow against or withdraw any part of the contributions to the Plan so long as he remains eligible to participate in the Plan.
Contributions made from and after the effective date of the Plan by any employee who becomes separated from the service of the Authority or dies prior to retirement or disability shall be refunded with interest at the rate hereinafter specified, less benefits received under the Plan.
An employee, as defined in Paragraphs 3.3(1), (2) or (3), who has completed one year or more of service with the Authority and an employee as defined in Paragraph 3.3(4), shall be entitled to a Refund with interest as provided in Paragraph 15.6.
If an employee who received a refund is not reinstated within the terms of Paragraph 3.7 (3) but returns to work as a new employee, he shall have only the rights of a new employee under this Plan and no service prior to the date of the new employment shall be credited as continuous Service.
On the death of an employee after his old age retirement allowance has become effective, there shall be paid from the Fund a sum equal to the amount by which the aggregate of the employee's contributions since the effective date of the Plan plus interest as hereinafter defined have exceeded the aggregate of all benefits received by him.
Contributions made prior to the effective date of this Plan shall be subject to refund in accordance with the terms, limitations and provisions of the several Plans under which such contributions were made. Moneys deducted from the employees' compensation by the Authority since October 1, 1947, for the account of Pension Fund No. 1 of Chicago Rapid Transit Company employees, shall be treated, for the purpose of this Section, as if they had been paid into said Pension Fund No. 1.
All payments provided for in Paragraphs 15.2, 15.3 and 15.4 shall be made under such rules and regulations as the Board may establish.
As to an employee who first became entitled to a Retirement Allowance commencing any month prior to June, 1957, $2,000.00 regardless of age and service.
The employee had elected Option A (as described in Paragraph 13.2) with such spouse as contingent annuitant with one-half (½) the reduced monthly retirement allowance to be paid to such spouse.
The allowance described in this paragraph shall not affect any option the employee may have elected under Section 13 that is to become effective at his retirement, nor shall it prevent his subsequent election of any such option under that Section.
If a contribution to the Plan was made by mistake, the Board shall issue a refund.
Section 17 - NO ASSIGNMENTS, ETC.
All Trustee charges shall be subject to approval by the Board and when so approved shall be paid out of the Fund held by the Trustee in the name of the Plan.
It is agreed that the Trustee shall have no liability as to the correctness of the amounts to be paid under this Plan when such amounts are determined and certified to the Trustee by the Board, nor shall the Trustee have any liability as to the correctness of the amounts to be received from the Authority and from the employees for the purpose of depositing the same with the Trustee when such amounts are determined and certified to the Trustee by the Board.
The Board is authorized to enter into any and all agreements with the Trustee that the Board may deem advisable for carrying out the provisions of this Plan and for the administration of the Fund herein, including the powers to be exercised by the Trustee and any investment managers in making investments and reinvestments to the end that the Fund shall at all times be prudently invested; the compensation and expenses of the Trustee and investment managers; and any and all other matters in accordance with the terms of the Plan deemed desirable by the Board; and such agreements shall be binding and conclusive on the parties hereto, the Board, and all employees and persons entitled to old age retirement or disability allowances or other payments under this Plan, and the Trustee, acting hereunder and in accordance herewith shall thereby incur no obligation whatsoever except as provided thereby and in this Plan.
The initial agreement entered into between the Board and the Trustee in accordance with this Section, or any modifications thereof, shall be subscribed by the Authority and the Association.
Not currently applicable. Text of original Section available in the Board's files.
Paragraphs 20.1 through 20.14 are not currently applicable. The historical text of the provisions is available in the Board's files.
For those retired on or after January 1, 1991 but before January 1, 2000, $40.00 per month.
The Authority agrees to pay (from and after the date of such abandonment) to each employee retired or disabled prior to June 1, 1948, the monthly benefits for life or for the duration of the disability, as the case may be, to which he is entitled at and immediately prior to the date of such abandonment.
An amount shall be allocated to the account of each participating employee equal to his own contributions from June 1, 1949, to the date of abandonment, with interest as herein provided, less any benefits received under the Plan, or if the employee shall have retired, the amount shall be equal to his contributions from June 1, 1949, to the date of his retirement, with such interest, less the retirement allowance or disability payments that have already been made to him.
After the allocations provided for in subparagraph (a) above, the balance remaining in the Fund shall be used for the purpose of providing for the retirement and disability benefits under this Plan (reduced as hereinafter stated) for active employees who have on the date of abandonment reached age sixty-five (65), and for those who retired or were disabled (and are still receiving a benefit) after May 31, 1948; such benefits shall be reduced, in the case of each employee, by a percentage equal to the percentage which the contributions of such employee, since June 1, 1949, bears to the total contributions made since said date (by him and the Authority) with respect to his compensation.
In the event such balance in the Fund is insufficient to provide for such reduced retirement and disability payments, then such balance shall be allocated to the account of each such employee in proportion to the ratio which the actuarial reserve for his said reduced benefit (to commence at normal retirement date) bears to the total of such actuarial reserves for all such employees.
In the event there remains a balance in the Fund after the allocations provided for in subparagraph (a) and after carrying out the provisions of subparagraph (b) above, then such balance shall be allocated to the account of each employee not provided for in subparagraphs (b) and (c) of this Section in proportion to the ratio which the actuarial reserve for his accrued retirement allowance (reduced by the same formula prescribed in (b) above) to commence at normal retirement date, bears to the total of such actuarial reserves for all such employees.
The Trustee shall liquidate the Fund, and the amounts allocated in accordance with Paragraph 21.1(2) shall be apportioned to all such employees in cash or in the form of insured paid up annuities, or by transfer to another trust fund, or otherwise all as the Board may direct.
Not currently applicable. Historical text of original Paragraph available in the Board's files.
Not currently applicable except as to certain retired employees. Text of original Section available in the Board's files.
If any provision of this agreement be held invalid, the remainder of the agreement shall not in any way be affected or impaired thereby.
By Agreement dated on April 30, 1953, between the Authority and Division 1381 of the Amalgamated Association of Street, Electric Railway and Motor Coach Employees of America, the Plan was extended to participants in the Retirement Plan of Chicago Motor Coach Company represented by Division 1381 with the following modifications as provided in the Agreement of April 30, 1953.
The Retirement Plan for Chicago Transit Authority Employees, hereafter called the Authority Plan, shall be applicable from and after January 1, 1953.
All provisions of the Authority Plan shall apply except as modified hereunder.
"Past Service" shall mean continuous service with the Chicago Motor Coach Company, or its predecessors, prior to January 1, 1951.
"Future Service" shall mean continuous service with the Chicago Motor Coach Company or the Authority from and after January 1, 1951.
Additional historical text available in Board's files.
"Past Service" shall mean the continuous service with the Chicago Motor Coach Company or any of its predecessor public utilities, rendered prior to January 1, 1952.
"Future Service" shall mean continuous service with the Chicago Motor Coach Company and the Chicago Transit Authority from and after January 1, 1952.
"Contributions to the Fund" Effective January 1, 1953, contributions of the Authority and of the employees shall be in accordance with Section 7 of the CTA Retirement Plan.
The date the employee suffers the disability which totally and permanently disables him from any type of work.
An existence of the employee's disability to the extent that he is unable to return to his regular duties after the employee has received benefits for a particular disability for twenty six weeks under the Authority's Group Accident and Sickness Insurance, or from the Authority under the Workmen's Compensation Act.
Not currently applicable. Text of original rule available in Board's files.
Retirement under the Retirement Plan for Chicago Transit Authority Employees shall be effective on the date officially accepted by the Board and recorded in the official minutes of t he retirement meetings. If a retired employee, other than an employee on disability retirement as provided under Rule No. 5 and, to accommodate the Early Retirement Incentive Program, other than an employee who is hired to work part time, shall work for t he Chicago Transit Authority after the effective date of his retirement, he will forfeit any monthly retirement allowance that may be due him for the calendar month in which such work was performed unless the retirement allowance is paid pursuant to Rule No. 30.
This Rule shall not be construed as in any way granting the right for a retired employee to return to work for the Chicago Transit Authority subsequent to the effective date of his retirement.
The amount so reported was wages shall be increased by amounts of wages subject to elections by employees under programs sponsored by the Authority as provided for by Sections 125, 132(f), 401(k), 403(b) and 457 of the Internal Revenue Code of 1986.
The amount so reported as wages and other compensation shall be limited to $200,000 as adjusted annually pursuant to the provisions of Section 401(a)(17) of the Internal Revenue Code of 1986 as amended.
I acknowledge receipt of the refund of my contributions to the Retirement Plan. I agree that if I return to the active service of the Authority within the terms of Paragraph 3.7 (2), I will, prior to commencing work, remit the amount of this refund to the Authority for payment into the Plan Fund. I understand that if I do not so remit the amount of the refund before commencing work, I shall lose all rights I may have in the Plan except those rights which accrue to any new employee.
If an employee is terminated and then reinstated subsequent to December 31, 2005 within the provisions of Paragraph 3.7 (3) of the Plan after having received a refund of his contributions and wishes to take advantage of Paragraph 15.2 (1) of the Plan, he shall repay to the Fund at one time or in installments selected by the employee the full amount of the refund plus interest within 36 months of the date of his return to work, according to the records of the Authority. Interest on the amount of the refund is computed at a rate of six (6%) per annum compounded annually from the date of receipt of the refund until payment in full of the amount of the refund.
If an employee is terminated and then reinstated prior to January 1, 2006, within the provisions of Paragraph 3.7(3) of the Plan or laid-off or furloughed within the provisions of Paragraph 3.7(6) of the Plan and then reemployed prior to January 1, 2006, after having received a refund of his contributions, and files an election with the Secretary between January 1, 2006, and March 31, 2006, to take advantage of Paragraph 15.2(1) of the Plan, he shall repay to the Fund at one time or in installments selected by the employee the full amount of the refund plus interest within 36 months after March 31, 2006. Interest on the amount of the refund is computed at a rate of six (6%) per annum compounded annually from the date of receipt of the refund until payment in full of the amount of the refund.
The order is made pursuant to a State domestic relations law and is a judgment, decree or order, including the approval of a property settlement agreement, which relates to the provision of child support, alimony payments or marital property rights to an alternate payee who is a spouse, former spouse, child or other dependent of an employee.
The amount or percentage of all of the employee's allowances, benefits and refunds under this Plan to be paid to each alternate payee, or the manner in which such amount or percentage is to be determined.
The number of payments or period to which the order applies, including the allowances, benefits and refunds applicable to the employee's service with the Authority both prior and subsequent to the date of the order.
The name and last known mailing address of the employee and each alternate payee covered by the order.
The order does not require this Plan to provide any type or form of benefit, or any option, not otherwise provided; and the order does not require any distribution of allowances, benefits or refunds at any point in time prior to the time that an employee or an employee's beneficiary, but for said order, would be entitled to receive payment of allowances, benefits or refunds.
The order does not require this Plan to make payment of allowances, benefits and refunds to an alternate payee which are required to be paid to another alternate payee under any other order satisfying the requirements of this Rule.
For the purposes of Paragraph 3.3 of the Plan, a temporary employee is defined as an individual employed by the Authority with the expectation by the Authority that he will not be employed by the Authority on a permanent and indefinitely continuing basis and is therefore classified by the Authority on its employment rolls as a temporary employee. (Adopted October 18, 1982).
A period certain not extending beyond the joint and last survivor expectancy of the employee and a designated beneficiary.
If the employee's spouse is not the designated beneficiary, the method of distribution selected shall assure that at least 50% of the present value of the amount available for distribution is paid within the life expectancy of the employee.
if the beneficiary is the employee's surviving spouse, the date distributions are required to begin in accordance with (1) above shall not be earlier than the date on which the employee would have attained age 70 1/2 and, if the spouse dies before payments begin, subsequent distributions shall be made as if the spouse had been the employee.
The finding, order, or agreement shall not be given effect with regard to any such period of time or compensation if the Board in its sole discretion determines that such action has the potential to cause the Plan to fail to satisfy any of the requirements of Section 401(a) of the Internal Revenue Code of 1986 or the regulations thereunder applicable to the Plan.
The Board's determination under this Rule shall be conclusive and binding on all parties. (Adopted July 28, 1992).
Notwithstanding any provision of the plan to the contrary that would otherwise limit a distributee's election under this part, a distributee may elect, at the time and in the manner prescribed by the plan administrator, to have any portion of an eligible rollover distribution that is equal to at least $500 paid directly to an eligible retirement plan specified by the distributee in a direct rollover. If an eligible rollover distribution is less than $500, a distributee may not make the election described in the preceding sentence to rollover a portion of the eligible rollover distribution.
Eligible rollover distribution: An eligible rollover distribution is any distribution of all or any portion of the balance to the credit of the distributee, except that an eligible rollover distribution does not include: any distribution that is one of a series of substantially equal periodic payments (not less frequently than annually) made for the life (or life expectancy) of the distributee or the joint lives (or joint life expectancies) of the distributee and the distributee's designated beneficiary, or for a specified period of ten years or more; any distribution to the extent such distribution is required under Section 401(a)(9) of the Internal Revenue Code; and the portion of any distribution that is not includible in gross income.
A portion of a distribution shall not fail to be an eligible rollover distribution merely because the portion consists of after-tax employee contributions which are not includible in gross income. However, such portion may be transferred only to (1) an individual retirement account or annuity described in §408(a) or (b) of the Code; or (2) to a qualified trust or to an annuity contract described in §403(b), if such trust or contract, provides for separate accounting for amounts so transferred (including interest thereon), including separately accounting for the portion of such distribution which is includible in gross income and the portion of such distribution which is not so includible.
Eligible retirement plan: An eligible retirement plan is an eligible plan under §457(b) of the Code which is maintained by a state, political subdivision of a state, or any agency or instrumentality of a state or political subdivision of a state and which agrees to separately account for amounts transferred into such plan from this plan, an individual retirement account described in §408(a) of the Code, an individual retirement annuity described in §408(b) of the Code, an annuity plan described in §403(a) of the Code, an annuity contract described in §403(b) of the Code, a qualified defined contribution plan described in §401(a) of the Code, or effective January 1, 2008, a Roth IRA described in §408A of the Code, that accepts the distributee's eligible rollover distribution. The definition of eligible retirement plan shall also apply in the case of a distribution to a surviving spouse, or to a spouse or former spouse who is the alternate payee under a qualified domestic relation order, as defined in §414(p) of the Code.
Distributee: A distributee includes an employee or former employee. In addition, an employee's or former employee's surviving spouse and the employee's or former employee's spouse or former spouse who is the alternate payee under a qualified domestic relations order, as defined in Section 414(p) of the Code, are distributees with regard to the interest of the spouse or former spouse. A distributee also includes the participant's non-spouse designated beneficiary. In the case of the non-spouse beneficiary, the direct rollover may be made only to an individual retirement account or annuity described in §408(a) or §408(b) ("IRA") that is established on behalf of the designated beneficiary and that will be treated as an inherited IRA pursuant to the provisions of §402(c)(11).
Direct rollover: A direct rollover is a payment by the plan to the eligible retirement plan specified by the distributee.
If an employee eligible to elect an Option A or Option B benefit pursuant to Paragraph 13.2 files such an election, as part of a retirement application which is complete in all respects, with the Secretary's office and dies before the application can be officially be accepted by the Board and recorded in the official minutes of the retirement meetings and if the employee's entitlement to retirement is approved by the Board, the deceased employee's election of an Option A or Option B benefit shall be accepted in lieu of the Option A ½ benefit otherwise payable in the absence of an election. (Adopted June 22, 2002).
An individual who is not working because of strikes or lockouts.
An individual while on an authorized leave of absence to work in the office of the Board. (Adopted June 23, 2005).
If the repayment of a refund of contributions (including interest thereon) or a purchase of pension credit is permitted under the provisions of the Plan, payment for such may be made by direct trustee-to-trustee transfer from a Code Section 403(b) annuity, a Code Section 401(k) plan, an individual retirement account or annuity described in Code Section 408(a) or (b) or a governmental Code Section 457 Plan.

References: § 22
 §408
 §403
 §457
 §408
 §408
 §403
 §403
 §401
 §408
 §414
 §408
 §408
 §402