40 ILCS 5/11-170
2021 Illinois Compiled Statutes|Chapter 40 - PENSIONS|40 ILCS 5/ - Illinois Pension Code.|Article 11 - Laborers' And Retirement Board Employees' Annuity And Benefit Fund--Cities Over 500,000 Inhabitants

 (from Ch. 108 1/2, par. 11-170)Sec. 11-170. Contributions for age and service annuities for present  employees, future entrants and re-entrants.(a) Beginning on the effective date and prior to July 1, 1947, 3  1/4%; and beginning on July 1, 1947 and prior to July 1, 1953, 5%; and  beginning July 1, 1953 and prior to January 1, 1972, 6%; and beginning  January 1, 1972, 6 1/2% of each payment of the salary of each present  employee, future entrant and re-entrant, except as provided in subsection (a-5) and (a-10), shall be contributed to the fund  as a deduction from salary for age and service annuity.(a-5) Except as provided in subsection (a-10), for an employee who  made the election under item (i) of subsection (d-10) of Section 1-160:  prior to the effective date of this amendatory Act of the 100th General Assembly,  6.5%; and beginning on the effective date of this amendatory Act of the 100th General Assembly and prior to January 1, 2018, 7.5%; and beginning January 1, 2018 and prior to January 1, 2019, 8.5%; and beginning January 1, 2019 and thereafter, employee  contributions for those employees who made the  election under item (i) of subsection (d-10) of Section 1-160  shall be the lesser of: (i) the total normal cost, calculated  using the entry age normal actuarial method, projected for the prior   fiscal year for the benefits and expenses of the plan of  benefits applicable to those members and participants who first became members or participants on or after the effective date  of this amendatory Act of the 100th General Assembly and to  those employees who made the election under item (i) of  subsection (d-10) of Section 1-160, but not less than 6.5% of  each payment of salary combined with the employee contributions  provided for in subsection (b) of Section 11-134.1 and Section  11-174 of this Article; or  (ii) the aggregate employee contribution consisting of 9.5% of  each payment of salary combined with the employee contributions  provided for in subsection (b) of Section 11-134.1 and 11-174 of  this Article.For the one-year period beginning with  the first pay period in January of each year the date when the funded ratio  of the fund as determined in the annual actuarial valuation is first determined to have reached the 90% funding  goal, and each subsequent one-year period thereafter for as long as the fund  maintains a funding ratio of 75% or more, employee  contributions for age and service annuity for those employees  who made the election under item (i) of subsection (d-10) of  Section 1-160 shall be 5.5% of each payment of salary. If the  funding ratio falls below 75%, then employee contributions for age and service annuity for those employees who made the  election under item (i) of subsection (d-10) shall revert to the lesser of: (A) the total normal cost, calculated  using the entry age normal actuarial method, projected for the prior   fiscal year for the benefits and expenses of the plan of  benefits applicable to those members and participants who first became members or participants on or after the effective date  of this amendatory Act of the 100th General Assembly and to  those employees who made the election under item (i) of  subsection (d-10) of Section 1-160, but not less than 6.5% of  each payment of salary combined with the employee contributions  provided for in subsection (b) of Section 11-134.1 and Section  11-174 of this Article; or  (B) the aggregate employee contribution consisting of 9.5% of  each payment of salary combined with the employee contributions  provided for in subsection (b) of Section 11-134.1 and 11-174 of  this Article. If the fund once again is determined to  have reached a funding ratio of 75%, the 5.5% of  salary contribution for age and service annuity shall resume.  An employee who made the election under item (ii) of subsection  (d-10) of Section 1-160 shall continue to have the  contributions for age and service annuity determined under  subsection (a) of this Section.If contributions are reduced to less than the  aggregate employee contribution described in item (ii) or item (B) of this  subsection due to application of the normal cost criterion,  the employee contribution amount shall be  consistent for that fiscal year.The normal cost, for the purposes of this subsection (a-5) and subsection (a-10), shall be calculated by an independent enrolled actuary mutually agreed upon by the fund and the City. The fees and expenses of the independent actuary shall be the responsibility of the City. For purposes of this subsection (a-5), the fund and the City shall both be considered to be the clients of the actuary, and the actuary shall utilize participant data and actuarial standards to calculate the normal cost.  The fund shall provide information that the actuary requests in order to calculate the applicable normal cost.(a-10) For each employee subject to subsection (c-5) of Section 1-160, 9.5% of each payment of salary shall be contributed to the fund as a deduction from salary for age and service annuity. Beginning January 1, 2018  and each year thereafter, employee contributions  for each employee subject to this subsection (a-10) shall be  the lesser of: (i) the total normal cost, calculated using the entry age normal actuarial method, projected for the prior   fiscal year for the benefits and expenses of the plan of  benefits applicable to those members and participants who first  become members or participants on or after the effective date of this amendatory Act of the 100th General Assembly and to  those employees who made the election under item (i) of  subsection (d-10) of Section 1-160, but not less than 6.5% of  each payment of salary combined with the employee contributions  provided for in subsection (b) of Section 11-134.1 and Section  11-174 of this Article; or (ii) the aggregate  employee contribution consisting of 9.5% of each payment of  salary combined with the employee contributions provided for in  subsection (b) of Section 11-134.1 and Section 11-174 of this  Article.For the one-year period beginning with the first pay period in January of each year after the date when the funded ratio of the fund as determined in the annual actuarial valuation is first determined to have reached the 90% funding goal, and each subsequent one-year period thereafter for as long as the fund maintains a funding ratio of 75% or more, employee contributions for age and service annuity for each employee subject to this subsection (a-10) shall be 5.5% of each payment of salary. If the funding ratio falls below 75%, then employee contributions for age and service annuity for each employee subject to this subsection (a-10) shall revert to the lesser of: (A) the total normal cost, calculated using the entry age normal actuarial method, projected for the prior   fiscal year for the benefits and expenses of the plan of  benefits applicable to those members and participants who first  become members or participants on or after the effective date of this amendatory Act of the 100th General Assembly and to  those employees who made the election under item (i) of  subsection (d-10) of Section 1-160, but not less than 6.5% of  each payment of salary combined with the employee contributions  provided for in subsection (b) of Section 11-134.1 and Section  11-174 of this Article; or (B) the aggregate  employee contribution consisting of 9.5% of each payment of  salary combined with the employee contributions provided for in  subsection (b) of Section 11-134.1 and Section 11-174 of this  Article. If the fund once again is determined to have reached a funding ratio of 75%, the 5.5% of salary contribution for age and service annuity shall resume.If contributions are reduced to less than the  aggregate employee contribution described in item (ii) or item (B) of this  subsection (a-10) due to application of the normal cost  criterion, the employee contribution amount shall be consistent for that fiscal year.Such deductions  beginning on the effective date and prior to June 30, 1947, inclusive  shall be made for a future entrant while he is in service until he  attains age 65, and for a present employee while he is in service until  the amount so deducted from his salary with interest at the rate of 4%  per annum shall be equal to the sum which would have accumulated to his  credit from sums deducted from his salary if deductions at the rate  herein stated had been made during his entire service until he attained  age 65 with interest at 4% per annum for the period subsequent to his  attainment of age 65. Such deductions beginning July 1, 1947 shall be  made and continued for employees while in the service.(b) Concurrently with each employee contribution, the city shall contribute beginning on the effective date and prior to July 1, 1947, 5 3/4%; and beginning July 1, 1947 and prior to July 1, 1953, 7%; and beginning July 1, 1953 and prior to July 6, 2017, 6% of each payment of such salary until the employee attains age 65.  Beginning July 6, 2017, the Fund shall credit sums equal to 6% of each payment of such salary for annuity purposes. The amounts credited for annuity purposes shall not be credited for refund purposes.(c) Each employee contribution made prior to the date age and  service annuity for an employee is fixed and each corresponding city  contribution shall be allocated to the account of and credited to the  employee for whose benefit it is made.(d) Notwithstanding Section 1-103.1, the changes to this Section made by this amendatory Act of the 100th General Assembly apply regardless of whether the employee was in active service on or after the effective date of this amendatory Act.(Source: P.A. 100-23, eff. 7-6-17; 100-1166, eff. 1-4-19.)