Statutes > Illinois Statutes > CHAPTER 40 PENSIONS > 40 ILCS 5/ Illinois Pension Code. > Article 5 - Policemen's Annuity And Benefit Fund--Cities Over 500,000

Article 5 - Policemen's Annuity And Benefit Fund--Cities Over 500,000


      (40 ILCS 5/Art. 5 heading)
ARTICLE 5. POLICEMEN'S ANNUITY AND BENEFIT FUND‑‑CITIES OVER 500,000

    (40 ILCS 5/5‑101) (from Ch. 108 1/2, par. 5‑101)
    Sec. 5‑101. Creation of fund.
    In each city of more than 500,000 inhabitants a policemen's annuity and benefit fund shall be created and maintained for the benefit of its policemen, their widows and children, and of all contributors to, participants in, and beneficiaries of any police pension fund in operation, by authority of law, in such city immediately prior to the effective date. For the purposes of this Article, the policemen's annuity and benefit fund may be referred to as the "fund."
(Source: Laws 1963, p. 161.)

    (40 ILCS 5/5‑102) (from Ch. 108 1/2, par. 5‑102)
    Sec. 5‑102. Terms defined.
    The terms used in this Article shall have the meanings ascribed to them in sections 5‑‑103 to 5‑‑120, inclusive, except when the context otherwise requires.
(Source: Laws 1963, p. 161.)

    (40 ILCS 5/5‑103) (from Ch. 108 1/2, par. 5‑103)
    Sec. 5‑103. Policemen's annuity and benefit fund act of the Illinois Municipal Code.
    "Policemen's Annuity and Benefit Fund Act of the Illinois Municipal Code": Division 7 of Article 10 of the Illinois Municipal Code, being a continuation of "An Act to provide for the creation, setting apart, maintenance and administration of a policemen's annuity and benefit fund in cities having a population exceeding two hundred thousand inhabitants", approved June 29, 1921, as amended.
(Source: Laws 1963, p. 161.)

    (40 ILCS 5/5‑104) (from Ch. 108 1/2, par. 5‑104)
    Sec. 5‑104. Park Policemen's Annuity Act.
    "Park Policemen's Annuity Act": "An Act to provide for the creation, setting apart, maintenance and administration of a Park Policemen's and Retirement Board Employees' Annuity and Benefit Fund", approved June 29, 1921, as amended.
(Source: Laws 1963, p. 161.)

    (40 ILCS 5/5‑105) (from Ch. 108 1/2, par. 5‑105)
    Sec. 5‑105. Park policemen's annuity fund.
    "Park policemen's annuity fund": The annuity and benefit fund created under the Park Policemen's Annuity Act.
(Source: Laws 1963, p. 161.)

    (40 ILCS 5/5‑106) (from Ch. 108 1/2, par. 5‑106)
    Sec. 5‑106. Exchange of Functions Act of 1957.
    "Exchange of Functions Act of 1957": "An Act in relation to an exchange of certain functions, property and personnel among cities, and park districts having coextensive geographic areas and populations in excess of 500,000", approved July 5, 1957.
(Source: Laws 1963, p. 161.)

    (40 ILCS 5/5‑107) (from Ch. 108 1/2, par. 5‑107)
    Sec. 5‑107. Effective date.
    "Effective date": January 1, 1922, for any city covered by the "Policemen's Annuity and Benefit Fund Act of the Illinois Municipal Code" on the date that this Article comes in effect; and January 1 of the year following the date that any other city first comes under the provisions of this Article.
(Source: Laws 1963, p. 161.)

    (40 ILCS 5/5‑108) (from Ch. 108 1/2, par. 5‑108)
    Sec. 5‑108. Retirement board or the board.
    "Retirement board" or "the board": The board of trustees of the Policemen's Annuity and Benefit Fund.
(Source: Laws 1963, p. 161.)

    (40 ILCS 5/5‑109) (from Ch. 108 1/2, par. 5‑109)
    Sec. 5‑109. Policeman. "Policeman":
    (a) An employee in the regularly constituted police department of a city appointed and sworn or designated by law as a peace officer with the title of policeman, policewoman, chief surgeon, police surgeon, police dog catcher, police kennelman, police matron, and members of the police force of the police department; and
    (b) An employee as defined in sub‑paragraph (a) immediately above who is serving in the regularly constituted police department of a city in a rank or position which is exempt from civil service and who, immediately prior to the time he began such service, was a participant in the Policemen's Annuity and Benefit Fund Act; and
    (c) Any policeman of a park district transferred to the employment of a city under the "Exchange of Functions Act of 1957".
(Source: P.A. 86‑272; 86‑1027.)

    (40 ILCS 5/5‑109.1) (from Ch. 108 1/2, par. 5‑109.1)
    Sec. 5‑109.1. Gender.
    The masculine gender whenever used in this Article includes the feminine gender and all annuities and benefits applicable to male policemen and their survivors and the contributions to be made for widows' annuities or other benefits, shall apply with equal force to female policemen and their survivors without any modification or distinction whatsoever.
(Source: P. A. 78‑1129.)

    (40 ILCS 5/5‑110) (from Ch. 108 1/2, par. 5‑110)
    Sec. 5‑110. Present employee.
    "Present employee": Any person employed by a city as a policeman on the day before the effective date, and, effective January 1, 1960, a policeman who qualifies as a present employee under the "Park Policemen's Annuity Act" whose employment as a policeman has been transferred to the police service of the city as a result of the "Exchange of Functions Act of 1957".
(Source: Laws 1963, p. 161.)

    (40 ILCS 5/5‑111) (from Ch. 108 1/2, par. 5‑111)
    Sec. 5‑111. Future entrant.
    "Future entrant":
    (a) A person employed by a city as a policeman for the first time on or after the effective date;
    (b) A former policeman of a city who reenters the police service on or after the effective date; and
    (c) Effective January 1, 1960, a policeman who qualifies as a future entrant under the "Park Policemen's Annuity Act", whose employment as a policeman has been transferred to the police service of the city as a result of the "Exchange of Functions Act of 1957".
(Source: Laws 1963, p. 161.)

    (40 ILCS 5/5‑112) (from Ch. 108 1/2, par. 5‑112)
    Sec. 5‑112. Active policeman.
    "Active policeman": A person employed and receiving salary as a policeman.
(Source: Laws 1963, p. 161.)

    (40 ILCS 5/5‑113) (from Ch. 108 1/2, par. 5‑113)
    Sec. 5‑113. Act of duty.
    "Act of duty": Any act of police duty inherently involving special risk, not ordinarily assumed by a citizen in the ordinary walks of life, imposed on a policeman by the statutes of this State or by the ordinances or police regulations of the city in which this Article is in effect or by a special assignment; or any act of heroism performed in the city having for its direct purpose the saving of the life or property of a person other than the policeman.
(Source: Laws 1963, p. 161.)

    (40 ILCS 5/5‑114) (from Ch. 108 1/2, par. 5‑114)
    Sec. 5‑114. Salary. "Salary":
    (a) Annual salary, provided that $2,600 shall be the maximum amount of salary to be considered for any purpose under this Act prior to July 1, 1927.
    (b) Annual salary, provided that $3,000 shall be the maximum amount of salary to be considered for any purpose under this Act from July 1, 1927 to July 1, 1931.
    (c) Annual salary, provided that the annual salary shall be considered for age and service annuity, minimum annuity and disability benefits and $3,000 shall be the maximum amount of salary to be considered for prior service annuity, widow's annuity, widow's prior service annuity and child's annuity from July 1, 1931 to July 1, 1933.
    (d) Beginning July 1, 1933, annual salary of a policeman appropriated for members of his rank or grade in the city's annual budget or appropriation bill, subject to the following:
        (1) For age and service annuity, minimum annuity and
     disability benefits, the amount of annual salary without limitation.
        (2) For prior service annuity, widow's annuity,
     widow's prior service annuity and child's annuity from July 1, 1933 to July 1, 1957, the amount of annual salary up to a maximum of $3,000; beginning July 1, 1957, for such annuities, the amount of annual salary without limitation.
        (3) When the salary appropriated is for a definite
     period of service of less than 12 months in any one year, disability benefits shall be computed on a daily wage basis computed by dividing the amount appropriated by 365.
    (e) For a policeman assigned to a non‑civil service position as provided in Section 5‑174 from and after January 1, 1970, (with the hereinafter stated excess not considered as salary for any purpose of this Article for any of the years prior to 1970 except to the extent provided by the election in Section 5‑174), annual salary means the total salary derived from appropriations applicable to the civil service rank plus the excess over such amount paid for service in the non‑civil service position.
    (f) Beginning January 1, 1998, the salary of a policeman, as calculated under subsection (d), shall include any duty availability allowance received by the policeman.
    An active or former policeman who (1) either retired between July 1, 1994 and December 31, 1997, both inclusive, or attained or will attain age 50 and 20 years of service between July 1, 1994 and January 1, 2002, both inclusive, and (2) received a duty availability allowance at any time after June 30, 1994 and before January 1, 1998 may elect to have that duty availability allowance included in the calculation of his or her salary under subsection (d) for all or any portion of that period for which the allowance was received, by applying in writing and paying to the Fund, no earlier than January 1, 1998 and no later than July 1, 1998, the corresponding employee contribution, without interest. Thereafter the City shall make its corresponding contribution, without interest.
    This subsection (f) applies without regard to whether the applicant terminated service or began to receive a retirement annuity before the effective date of this amendatory Act of 1997. In the case of a person who is receiving a retirement annuity at the time the application and contribution are received by the Fund, the annuity shall be recalculated and the resulting increase shall become payable on the next annuity payment date following the date the contribution is received by the Fund.
(Source: P.A. 90‑551, eff. 12‑12‑97.)

    (40 ILCS 5/5‑115) (from Ch. 108 1/2, par. 5‑115)
    Sec. 5‑115. Disability. "Disability": A condition of physical or mental incapacity to perform any assigned duty or duties in the police service.
(Source: Laws 1963, p. 161.)

    (40 ILCS 5/5‑116) (from Ch. 108 1/2, par. 5‑116)
    Sec. 5‑116. Withdrawal, withdrawal from service, or withdrawn from service.
    "Withdrawal", "withdrawal from service", or "withdrawn from service": The discharge or resignation of a policeman.
(Source: Laws 1963, p. 161.)

    (40 ILCS 5/5‑117) (from Ch. 108 1/2, par. 5‑117)
    Sec. 5‑117. Assets.
    "Assets": The total value of cash, securities, and other property less all liabilities. Bonds shall be valued at their amortized book value.
(Source: P.A. 78‑833.)

    (40 ILCS 5/5‑118) (from Ch. 108 1/2, par. 5‑118)
    Sec. 5‑118. Age.
    "Age": Age at last birthday preceding the date on which ascertainment of age is necessary to any computation under this Article.
(Source: Laws 1963, p. 161.)

    (40 ILCS 5/5‑119) (from Ch. 108 1/2, par. 5‑119)
    Sec. 5‑119. Injury.
    "Injury": A physical hurt resulting from external force or violence.
(Source: Laws 1963, p. 161.)

    (40 ILCS 5/5‑120) (from Ch. 108 1/2, par. 5‑120)
    Sec. 5‑120. Interest.
    "Interest": (a) Interest at 4% per annum for any policeman who was a participant or a contributor to this fund on December 31, 1953; and (b) interest at 3% per annum for any future entrant not a participant or contributor to this fund on December 31, 1953, who becomes a participant or contributor after December 31, 1953.
    For fund accounts, credits, transfers and charges, "interest" means interest at 4% per annum as to amounts applicable to any policeman who was a participant or a contributor on December 31, 1953, and interest at 3% per annum as to amounts applicable to any future entrant who was not a participant or a contributor on December 31, 1953, but who becomes a participant or contributor after December 31, 1953.
(Source: Laws 1963, p. 161.)

    (40 ILCS 5/5‑121) (from Ch. 108 1/2, par. 5‑121)
    Sec. 5‑121. Annuity. Prior service annuity, age and service annuity, widow's annuity and widow's prior service annuity shall consist of equal monthly payments for life with the first payment payable one month after the occurrence of the event upon which payment shall depend.
    Any annuitant may execute a written waiver under oath of his right to receive any part of his annuity, to take effect upon its being filed with the board. The amount waived shall be a permanent reduction in the annuity payable to the annuitant. Nothing in this Section shall be deemed to change or modify the terms and conditions of the reversionary annuity under 5‑132.2.
(Source: P.A. 83‑823.)

    (40 ILCS 5/5‑122) (from Ch. 108 1/2, par. 5‑122)
    Sec. 5‑122. Prior service annuity.
    "Prior Service Annuity" shall be credited for present employees for service rendered prior to the effective date in accordance with the provisions of "Policemen's Annuity and Benefit Fund Act of the Illinois Municipal Code" and this Article. Each such credit shall be improved by interest during the time thereafter the employee is in service until his annuity is fixed.
    In determining such annuity, the annual salary for the entire period of the employee's service prior to the effective date shall be the salary in effect on the effective date.
(Source: Laws 1963, p. 161.)

    (40 ILCS 5/5‑123) (from Ch. 108 1/2, par. 5‑123)
    Sec. 5‑123. Age and service annuity.
    "Age and Service Annuity" shall be provided policemen for service rendered on or after the effective date.
(Source: Laws 1963, p. 161.)

    (40 ILCS 5/5‑124) (from Ch. 108 1/2, par. 5‑124)
    Sec. 5‑124. Present employees ‑ Limitation to and amount of prior service annuities in certain cases. A present employee who has a credit on the effective date, for prior service annuity, of an amount sufficient to provide annuity as of his age on such date equal to that to which he would have had a right if employee contributions by salary deductions and city contributions had been made for age and service annuity during his entire period of service until his attainment of age 57, is entitled to a prior service annuity from the date he withdraws from service of such amount as can be provided by his credit for prior service annuity on the effective date. Any such present employee has no right to receive age and service annuity.
(Source: P.A. 81‑1536.)

    (40 ILCS 5/5‑125) (from Ch. 108 1/2, par. 5‑125)
    Sec. 5‑125. Present employees ‑ Age 57 in service ‑ Amount of annuity. (a) A present employee who attains age 57 or more while in service, having credit from sums accumulated for age and service annuity and prior service annuity sufficient to provide annuity as of his age at such time equal to that to which he would have had a right if employee contributions by salary deductions and city contributions had been made in accordance with this Article applicable to age and service annuity during his entire period of service until he attained age 57, is entitled to such age and service annuity and prior service annuity when he withdraws.
    (b) A present employee who attains age 57 or more while in service and who has not to his credit for age and service annuity and prior service annuity the amount described in paragraph (a) above is entitled on the date of his withdrawal to such age and service annuity and prior service annuity as can be provided by the amount to his credit for such annuities.
(Source: P.A. 81‑1536.)

    (40 ILCS 5/5‑126) (from Ch. 108 1/2, par. 5‑126)
    Sec. 5‑126. Present employees ‑ Age 50 but less than 57 in service ‑ Age 50 out of service ‑ Amount of annuity. A present employee who (1) attains age 50 or more but less than 57 while in service, having 10 or more years of service at the date of withdrawal or (2) withdraws with 10 or more years of service before age 50 and thereafter attains age 50 while out of service, is entitled to an age and service annuity and prior service annuity from the date of withdrawal or after attainment of age 50, respectively, in such amount as can be provided from the total of the following:
    1. If service is 20 or more years, the sum credited for age and service annuity and prior service annuity; or
    2. If service is 10 or more but less than 20 years, (a) the sum provided for age and service annuity, (b) 1/10 of the contributions by the city for each year of service after the first 10 years, (c) the sum credited for prior service annuity from employee contributions and applied to any police pension fund in operation, by authority of law, in such city on the effective date, and (d) 1/10 of the credit for prior service annuity, in accordance with the "Policemen's Annuity and Benefit Fund Act of the Illinois Municipal Code", for each year of service after the first 10 years.
    The annuity provided in this section for an employee who attains age 50 out of service shall be computed as though the employee were exactly age 50 at the time the annuity is granted, regardless of his actual age when application for annuity is made, and no such employee has any right to any annuity on account of any time between the date he attains age 50 and the date of application for annuity, nor shall any annuity be payable if the employee has received a refund of contributions.
    Annuity in excess of that fixed by this section shall not be granted unless the employee re‑enters the service before age 57. If such re‑entry occurs, his annuity shall be provided in accordance with this section or section 5‑125, whichever is applicable.
(Source: P.A. 81‑1536.)

    (40 ILCS 5/5‑127) (from Ch. 108 1/2, par. 5‑127)
    Sec. 5‑127. Minimum amount of annuity of present employee.
    Any present employee who withdraws on or after the effective date having at least 20 years of service and for whom the annuity otherwise provided in this Article is less than the amount stated in this section, has a right to annuity as follows:
    (1) If he is at least age 50 on withdrawal, his annuity, from and after such withdrawal, shall be 50% of the compensation attached to or appropriated for the rank in the police department which he may have held by civil service appointment on the day one year prior to the date of withdrawal from service. Beginning July 1, 1931, the compensation to be used shall be not less than that in effect on July 1, 1931;
    (2) If he is less than age 50 on withdrawal, his annuity, beginning on the date he becomes age 50, shall be 50% of his salary at withdrawal but not in excess of $900 a year.
(Source: Laws 1963, p. 161.)

    (40 ILCS 5/5‑128) (from Ch. 108 1/2, par. 5‑128)
    Sec. 5‑128. Future entrants ‑ amount of annuity. When a future entrant withdraws from service, his age and service annuity shall be fixed as of the date of withdrawal. The annuity shall be that provided from the entire sum to his credit for age and service annuity on the date he withdraws from service.
(Source: P.A. 86‑272.)

    (40 ILCS 5/5‑129) (from Ch. 108 1/2, par. 5‑129)
    Sec. 5‑129. Future entrants ‑ Age 50 in service ‑ amount of annuity. When a future entrant who attains age 50 or more in service, having 10 or more years of service, withdraws, his age and service annuity shall be fixed as of his age at withdrawal. He is entitled to annuity, after withdrawal, of the amount provided from the following sums on the date of withdrawal:
    (1) If service is 20 or more years, the entire sum accumulated for age and service annuity from employee contributions and contributions by the city; or
    (2) If service is 10 or more but less than 20 years, the sum accumulated for age and service annuity from employee contributions, plus 1/10 of the sum accumulated for such purpose from contributions by the city, for each completed year of service after the first 10 years.
(Source: P.A. 86‑272.)

    (40 ILCS 5/5‑129.1)
    Sec. 5‑129.1. Withdrawal at mandatory retirement age ‑ amount of annuity.
    (a) In lieu of any annuity provided in the other provisions of this Article, a policeman who is required to withdraw from service on or after January 1, 2000 due to attainment of mandatory retirement age and has at least 10 but less than 20 years of service credit may elect to receive an annuity equal to 30% of average salary for the first 10 years of service plus 2% of average salary for each completed year of service or fraction thereof in excess of 10, but not to exceed a maximum of 48% of average salary.
    (b) For the purpose of th