Illinois Administrative Code › Title 50 - INSURANCE › Part 4404 - PORTABILITY OF CREDITABLE SERVICE TIME FOR DOWNSTATE AND SUBURBAN POLICE PENSION FUNDS › Section 4404.50 - Method for Calculation of the True Cost

Current through Register Vol. 48, No. 28, July 12, 2024
a) The qualified actuary shall provide the
			 current pension fund with the actuarial accrued liability assuming continuation
			 of active status, and the amount of reserve for each possible status that may
			 apply to the officer as set forth in subsection (b). The actuarial accrued
			 liability and reserve amounts shall be computed utilizing the actuarial cost
			 method and the same assumptions that were used for determining the most recent
			 actuarial valuation for the current pension fund.
b) The possible status choices that may be
			 considered, in addition to the requirement of remaining active as an officer
			 until the completion of the transfer, are retirement, deferred retirement,
			 disability, and withdrawal. For each applicable status choice, the actuary
			 shall provide the current pension fund with two actuarial accrued liability or
			 reserve amounts. The first amount shall be the actuarial accrued liability or
			 reserve computed using the combined years of service in the current fund and
			 previous funds. The second amount shall be the actuarial accrued liability or
			 reserve computed using only the years of service in the current fund. These
			 amounts shall be computed as of the date the current pension fund receives the
			 request for transfer of creditable service. The benefit amounts used in
			 computing the actuarial accrued liability or reserve amounts shall be
			 consistent with the years of service used in each separate actuarial accrued
			 liability or reserve amount calculation. The true cost for each status shall be
			 equal to the excess of the amount computed using the combined years of service
			 in all funds over the amount computed using the years of service in the current
			 pension fund.
c) The method of
			 calculating the true cost of transferring creditable service time shall be
			 dependent on the anticipated status of the officer as determined by the current
			 pension fund at the time of the service transfer or immediately thereafter. It
			 is the current pension fund's responsibility to determine the most likely
			 status of the officer after the transfer of creditable service time.
d) The current pension fund board of trustees
			 shall determine the true cost for the requested period of creditable service
			 time with information provided to the current pension fund by either:
1) the Illinois Department of Insurance, upon
			 the fund's submission of the Information Request Form for an Officer's
			 Creditable Service Transfer. The form is available on the Department's Pension
			 Division website portal at
https://insurance.illinois.gov/Applications/Pension/Form.aspx
.
			 The Department will return the information requested within 30 days after
			 receipt of the request, if the Department's actuarial valuation was used for
			 determining the most recent funding requirements of the current pension fund;
			 or
2) the qualified actuary who was
			 retained by the municipality or pension fund to determine the most recent
			 actuarial valuation used for determining the funding requirements of the
			 current fund.