(40 ILCS 5/8-213)
(from Ch. 108 1/2, par. 8-213)
City contribution reserve.
Amounts contributed by the
city for age and service annuity, widow's annuity and supplemental
annuity (except those in lieu of deductions from the salary contributed
of an employee who receives duty disability benefit), the assets of the
public school employees' pension fund superseded by this fund on July 1,
1923 which were transferred to this reserve, and all amounts transferred
to this reserve from the investment and interest reserve, shall be
credited to this reserve.
At least once each year, before any transfer shall be made from this
reserve to any other reserve, the sums credited in this reserve shall be
improved by interest.
When the annuity for an employee or his widow is fixed, and when
supplemental annuity for a widow first becomes payable, the amount in
this reserve for such annuity shall be transferred to the annuity
If the credit in this reserve of any employee who withdraws from
service before he attains age 65 is in excess of that required for his
age and service annuity, or in excess of that required for widow's
annuity (either or both), such amounts shall be retained in this reserve
and improved by interest at the effective rate until the employee
becomes age 65 or dies, whichever occurs first. Any such amounts shall
then be used to reduce city contributions.
With respect to employees whose wages are funded as participants
under CETA, the board may elect to establish a separate manpower program
reserve or account for funds made available by the federal government
towards the employer's contribution. The manpower program reserve will
be administered as is the City contribution reserve, except that where
at variance it will be administered in accordance with the rules and
regulations established by the Secretary of the United States Department
of Labor or his designee.
At the time that employees previously funded as participants under
CETA lose their participant status and obtain unsubsidized employment
with the employer, unsubsidized employment with another employer
provided that benefits are portable, or obtain vesting status, as
defined by the Secretary of Labor or his designee, a transfer of funds
equivalent to the amount of contributions made for such employees will
be made out of the manpower program reserve. For prior CETA participants
who continue as employees in public service which is covered by a
participating retirement system, the sums will be credited to the
regular City contribution reserve.
(Source: P.A. 81-1536.)