(40 ILCS 5/8-189)
(from Ch. 108 1/2, par. 8-189)
Contributions by city for prior service annuities and pensions under former
acts, and for other purposes.
The 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 for the
(a) The city shall make contributions to provide prior service and
widow's prior service annuities, and other annuities, pensions and benefits
which have been or shall be allowed or granted under any of the following
Acts or in accord with the following described provisions:
1. The Municipal pension fund Act as defined in Section 8-123 of this
Article with further reference to Section 8-238; Public School Employees'
Pension Act of 1903, Sections 8-107 and 8-239; Court and Law Department
Employees' Annuity Act, Sections 8-105 and 8-240; Board of Election
Commissioners Employees' Annuity Act, Sections 8-106 and 8-240; Public
Library Employees' Pension Act, Sections 8-107.1 and 8-240.1; House of
Correction Employees' Pension Act, Sections 8-107.2 and 8-240.2.
2. To meet such part of any minimum annuity as shall be in excess of the
age and service annuity and prior service annuity; and such part of any
minimum annuity for widows as shall be in excess of the widow's annuities
and widow's prior service annuity; also for the purpose of providing the
city cost of automatic increases in annuity after retirement in accord with
Section 8-137, and for any other purpose for which moneys are not otherwise
provided in this Article.
3. To provide a sufficient balance in the investment and interest
reserve to permit a transfer from that reserve to other reserves of the
4. To credit to the city contribution reserve such amounts required from
the city but not contributed by it for age and service and prior service
annuities, and widows' annuities and widows' prior service annuities.
(b) All such contributions shall be credited to the prior service
annuity reserve. When the balance of this reserve equals its liabilities
(including in addition to all other liabilities, the present values of all
annuities, present or prospective, according to the applicable mortality
tables and rates of interest), the city shall cease to contribute the sum
stated in this section.
Whenever the balance of the investment and interest reserve is not
sufficient to permit a transfer from that reserve to any other reserve, the
city shall contribute sums sufficient to make possible such transfer;
provided, that if annexation of territory and the employment by the city of
any employee of any such territory at the time of annexation, after the
city has ceased to contribute as herein provided, results in additional
liabilities for prior service annuity and widow's prior service annuity for
any such employee, contributions by the city for such purposes shall be
(Source: P.A. 76-1301.)