(40 ILCS 5/5-175) (from Ch. 108 1/2, par. 5-175)
Sec. 5-175.
Contributions by city for prior service annuities and pensions under former
acts.
Each city shall contribute annually, from the sum produced by the tax
levy herein authorized, all sums required for the purposes of this Article
other than those stated in this Section. The balance of the sum produced by
the tax levy shall be applied: (a) For the payment of prior service
annuities and widow's prior service annuities, and all annuities, pensions
and benefits which have been or which shall be allowed under "An Act to
provide for the setting apart, formation and disbursements of a police
pension fund in cities having a population exceeding two hundred thousand
inhabitants", approved June 29, 1915, as amended; also for the purpose of
paying that part of any annuity for which reserves from contributions by
the policeman and the city are not provided under this Article, including
that part of the annuity described in Section 5-127, 5-132, 5-136, 5-145,
and 5-167 and 5-167.4 for which monies are not provided in this Article, and to make
possible the transfer of reserves from the investment and interest reserve
to other reserves of the fund, as provided in this Article.
(b) Amounts contributed by the city for the purposes of this section
shall be credited to the prior service annuity reserve. When the balance of
that reserve equals the liabilities chargeable thereto (including in
addition to all other liabilities of such reserve, the present value,
according to the American Experience Table of Mortality, and interest at
the rate of 4% per annum, or according to the Combined Annuity Mortality
Table and interest at the rate of 4% per annum, whichever is applicable, of
all annuities present or prospective, chargeable to the prior service
annuity reserve) the city shall cease to contribute the sum no longer
required for the purposes indicated in paragraph (a) of this section;
provided, if at any time the balance of the investment and interest reserve
is not sufficient to permit a transfer from such reserve to any other
reserve of the fund, in accordance with the provisions of this Article, the
city shall, as soon as possible and practicable thereafter, contribute sums
sufficient to make possible such transfer.
(c) If by reason of annexation of territory and the employment by the
city of any policeman then employed in the annexed territory, after the
city has ceased to make contributions under this section, contributions to
provide prior service and widow's prior service annuity for such policeman
become necessary for such purposes, the city shall, as soon as possible and
practicable thereafter, contribute sums sufficient to provide such annuities.
(Source: P.A. 82-342.)
|