Aggregate municipality charges for concurrent service shall be prorated based on the employee's earnings. The municipality charges for retirement annuities calculated under subparagraph a. of paragraph 1. of subsection (a) of Section 7-142 shall be prorated based on actual contributions.
2. Supplemental annuities shall be handled as a separate annuity and
amounts to be credited to the annuity reserve therefor shall be derived in
the same manner as a regular annuity.
3. When a retirement annuity is granted to an employee with a spouse
eligible for a surviving spouse annuity, there shall be credited to the
annuity reserve an amount to fund the cost of both the retirement and
surviving spouse annuity as a joint and survivors annuity.
4. Beginning January 1, 1989, when a retirement annuity is awarded, an
amount equal to the present
value of the $3,000 death benefit payable upon the death of the annuitant
shall be transferred to the annuity reserve from the appropriate
municipality reserves in the same manner as the transfer for annuities.
5. All annuity reserves shall be revalued annually as of December 31.
Beginning as of December 31, 1973, adjustment required therein by such
revaluation shall be charged or credited to the earnings and experience
6. There shall be credited to the annuity reserve all of the
made by annuitants under Section 7-144.2, plus an
additional amount from the
earnings and experience variation reserve to fund the cost of the
incremental annuities granted to annuitants making these payments.
7. As of December 31, 1972, the excess in the annuity reserve shall be
transferred to the municipality reserves. An amount equal to the deficiency
in the reserve of participating municipalities and participating
instrumentalities which have no participating employees shall be allocated
to their reserves. The remainder shall be allocated in amounts
proportionate to the present value, as of January 1, 1972, of annuities of
annuitants of the remaining participating municipalities and participating
(Source: P.A. 97-319, eff. 1-1-12; 97-609, eff. 1-1-12; 97-813, eff. 7-13-12.)