(40 ILCS 5/11-204)
(from Ch. 108 1/2, par. 11-204)
Annuity payment reserve.
Amounts transferred from the city contribution reserve and the
employees' contribution reserve for annuities which have been fixed,
amounts deducted from an employee's salary after the age and service
annuity has been fixed, and amounts transferred to this reserve from the
investment and interest reserve, shall be credited to this reserve.
Age and service annuities and widow's annuities shall be charged to
this reserve. Amounts refunded in accordance with Sections 11-148,
11-166, 11-172 and 11-149(2) of this Article shall be charged to this
When an employee whose annuity was fixed or granted, re-enters
service before age 65, an amount determined under the provisions
governing re-entry into service shall be charged to this reserve and
transferred to the city contribution reserve and the salary deduction
reserve, respectively, for age and service annuity. Such amount shall be
divided in said reserves in the same proportion as that in which the
previous transfer from such reserves to this reserve was made.
If the wife of the employee, when he re-enters service, is the same
as that when the widow's annuity was fixed, an amount to be determined
under the provisions governing re-entry into service shall be
transferred from this reserve and credited for widow's annuity in the
city contribution reserve and the employees' contribution reserve,
respectively. Such credit shall be in the same proportion as that in
which the previous transfer was made.
If at the end of any year the credit balance of the annuity payment
reserve exceeds the liabilities chargeable thereto by more than 15% of
such liabilities, the excess shall be transferred to the investment and
interest reserve, expense reserve, ordinary disabling reserve, prior
service annuity reserve, and city contribution reserve, in the order
named, to remove any deficiency existing in any such reserves.
(Source: P.A. 81-1536.)