Bill Text: IL SB2915 | 2023-2024 | 103rd General Assembly | Introduced

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Bill Title: Amends the Illinois Municipal Retirement Fund (IMRF) Article of the Illinois Pension Code. Increases, except for persons who first retired prior to the effective date of the amendatory Act, the amount of the death benefit from $3,000 to $8,000. Makes conforming changes. Amends the State Mandates Act to require implementation without reimbursement. Effective January 1, 2025.

Spectrum: Partisan Bill (Democrat 1-0)

Status: (Introduced) 2024-01-26 - Referred to Assignments [SB2915 Detail]

Download: Illinois-2023-SB2915-Introduced.html

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103RD GENERAL ASSEMBLY State of Illinois 2023 and 2024 SB2915 Introduced 1/26/2024, by Sen. Karina Villa SYNOPSIS AS INTRODUCED:
40 ILCS 5/7-158 from Ch. 108 1/2, par. 7-158
40 ILCS 5/7-164 from Ch. 108 1/2, par. 7-164
40 ILCS 5/7-172 from Ch. 108 1/2, par. 7-172
40 ILCS 5/7-205 from Ch. 108 1/2, par. 7-205
40 ILCS 5/7-206 from Ch. 108 1/2, par. 7-206
Amends the Illinois Municipal Retirement Fund (IMRF) Article of the Illinois Pension Code. Increases, except for persons who first retired prior to the effective date of the amendatory Act, the amount of the death benefit from $3,000 to $8,000. Makes conforming changes. Amends the State Mandates Act to require implementation without reimbursement. Effective January 1, 2025.
LRB103 36207 RPS 66300 b
STATE MANDATES ACT MAY REQUIRE REIMBURSEMENT MAY APPLY
A BILL FOR
SB2915 LRB103 36207 RPS 66300 b
AN ACT concerning public employee benefits.
Be it enacted by the People of the State of Illinois,
represented in the General Assembly:
Section 5. The Illinois Pension Code is amended by
changing Sections 7-158, 7-164, 7-172, 7-205, and 7-206 as
follows:
(40 ILCS 5/7-158) (from Ch. 108 1/2, par. 7-158)
Sec. 7-158. Surviving spouse annuities - Options. In lieu
of the surviving spouse annuity an eligible surviving spouse
shall have the option of receiving other benefits as follows:
1. The surviving spouse of a participating employee may
elect to receive either a single sum death benefit or a
surviving spouse annuity and the $8,000 ($3,000 for those who
first retired prior to the effective date of this amendatory
Act of the 103rd General Assembly) $3,000 death benefit
provided in Sections 7-163 and 7-164.
2. The surviving spouse of an employee, who has separated
from service and would have been entitled to a retirement
annuity on date of death, may elect to receive either a single
sum death benefit or a surviving spouse annuity and the $8,000
($3,000 for those who first retired prior to the effective
date of this amendatory Act of the 103rd General Assembly)
$3,000 death benefit provided in Sections 7-163 and 7-164.

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3. If any surviving spouse annuity is payable prior to the
earliest age at which the recipient will become eligible for a
widows' or widowers' insurance benefit under the Federal
Social Security Act, the recipient may elect that the annuity
payments from this fund shall exceed those payable after
attaining such age by an amount not in excess of the estimated
Social Security Benefit, determined as of the effective date
of the surviving spouse annuity, provided that in no case
shall the total annuity payments made by this fund exceed in
actuarial value the annuity which would have been paid had no
such election been made.
4. The surviving spouse of a participating employee, whose
annuity was suspended upon return to employment and who had
one year or more of service after his return, may apply the
additional service credits to a supplemental surviving spouse
annuity and receive the $8,000 ($3,000 for those who first
retired prior to the effective date of this amendatory Act of
the 103rd General Assembly) $3,000 death benefit or apply the
additional service credits to a single sum death benefit and
forego the $8,000 ($3,000 for those who first retired prior to
the effective date of this amendatory Act of the 103rd General
Assembly) $3,000 death benefit payable upon the death of an
annuitant.
5. The surviving spouse of a participating employee, whose
annuity was suspended upon return to employment and who had
less than one year of service after his return, shall have the

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additional service credits applied towards a supplemental
surviving spouse annuity and shall receive the $8,000 ($3,000
for those who first retired prior to the effective date of this
amendatory Act of the 103rd General Assembly) $3,000 death
benefit.
(Source: P.A. 85-941.)
(40 ILCS 5/7-164) (from Ch. 108 1/2, par. 7-164)
Sec. 7-164. Death benefits - Amount. The amount of the
death benefit shall be:
1. Upon the death of an employee with at least one year of
service occurring while in an employment relationship
(including employees drawing disability benefits) with a
participating municipality or participating instrumentality,
an amount equal to the sum of:
(a) The employee's normal, additional and survivor
credits, including interest credited thereto through the
end of the preceding calendar year, but excluding credits
and interest thereon allowed for periods of disability.
(b) An amount equal to the employee's annual final
rate of earnings. An employee who dies as a result of
injuries connected with his duties shall be considered to
have a year of service for purposes of this benefit.
2. Upon the death of an employee with less than 1 year of
service occurring while in the service of any participating
municipality or instrumentality, an amount equal to the sum of

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his accumulated normal, additional and survivor credits on the
date of death, excluding those credits and interest thereon
allowed during periods of disability.
3. Upon the death of an employee who has separated from
service and was not entitled to a retirement annuity on the
date of death, an amount equal to the sum of his accumulated
normal, survivor and additional credits on the date of death
excluding those credits and interest thereon allowed during
periods of disability.
4. Upon the death of an employee in an employment
relationship, or an employee who has service and was entitled
to a retirement annuity on the date of death, when a surviving
spouse or child annuity is awarded, $8,000 ($3,000 for those
who first retired prior to the effective date of this
amendatory Act of the 103rd General Assembly) $3,000.
5. Upon the death of an employee, who has separated from
service and was entitled to a retirement annuity on the date of
death, and no surviving spouse or child annuity is awarded,
$8,000 ($3,000 for those who first retired prior to the
effective date of this amendatory Act of the 103rd General
Assembly) $3,000 plus an amount equal to his accumulated
normal, survivor and additional credits on the date of death,
excluding those credits and interest earned thereon allowed
during periods of disability.
6. Upon the death of an employee annuitant, $8,000 ($3,000
for those who first retired prior to the effective date of this

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amendatory Act of the 103rd General Assembly) $3,000 and,
unless a surviving spouse, child or reversionary annuity is
payable, the sum of (i) the excess of the normal and survivor
credits, excluding those allowed during periods of disability,
which the annuitant had as of the effective date of his annuity
over the total annuities paid pursuant to paragraph (a) 1 of
Section 7-142 to the date of death, plus (ii) the excess of the
additional credits, excluding any such credits used to create
a reversionary annuity, used to provide the annuity granted
pursuant to paragraph (a) 2 of Section 7-142 over the total
annuity payments made pursuant thereto to the time of death.
7. Upon the death of an annuitant receiving a reversionary
annuity or of a person designated to receive a reversionary
annuity prior to the receipt of such annuity the sum of the
additional credits of the person creating the reversionary
annuity as of the effective date of his own retirement annuity
over the reversionary annuity payments, if any, made prior to
the date of death of such annuitant or person designated to
receive the reversionary annuity.
8. Upon the death of an annuitant receiving a beneficiary
annuity which was effective before January 1, 1986, the excess
of the death benefit which was used to provide the annuity,
over the sum of all annuity payments made to the beneficiary.
Upon the death of an annuitant receiving a beneficiary annuity
effective January 1, 1986 or thereafter, the sum of (i) the
excess of the normal and survivor credits, excluding those

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allowed during periods of disability, which the annuitant had
as of the effective date of his annuity over the total
annuities paid pursuant to paragraph (c) of Section 7-165, to
date of death, plus (ii) the excess of the additional credits,
excluding any such credits used to create a reversionary
annuity, used to provide the annuity granted pursuant to
paragraph (d) of Section 7-165 over the total annuity payments
made pursuant thereto to the time of death.
9. Upon the marriage prior to reaching age 55 (except for a
surviving spouse who remarries after December 31, 2000) or
death of a person receiving a surviving spouse annuity, unless
a child annuity is payable, the sum of (i) the excess of the
normal and survivor credits, excluding those credits and
interest thereon allowed during periods of disability,
attributable to the employee at the effective date of the
annuity or date of death, whichever first occurred, over the
total of all annuity payments attributable to paragraph (a) 1
of Section 7-142 made to the employee or surviving spouse plus
(ii) the excess of the additional credits, excluding any such
credits used to create a reversionary annuity or used to
provide the annuity attributable to paragraph (a) 2 of Section
7-142 over the total of such payments.
10. Upon the marriage, death or attainment of age 18 of a
child receiving a child annuity, if no other child annuities
are payable, the sum of (i) the excess of the normal and
survivor credits excluding those credits and interest thereon

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allowed during periods of disability, of the employee at the
effective date of the annuity or date of death, whichever
first occurred, over the total annuity payments attributable
to paragraph (a) 1 of Section 7-142 made to the employee,
surviving spouse and children plus (ii) the excess of the
additional credits, excluding any such credits used to create
a reversionary annuity, used to provide the annuity
attributable to paragraph (a) 2 of Section 7-142 over the
total annuity payments made to the employee, surviving spouse
and children, pursuant thereto.
11. Upon the death of the participating employee whose
annuity was suspended upon his return to employment:
a. If a surviving spouse or child annuity is awarded,
$8,000 ($3,000 for those who first retired prior to the
effective date of this amendatory Act of the 103rd General
Assembly) $3,000;
b. If no surviving spouse or child annuity is awarded
and he had less than one year's service upon return,
$8,000 ($3,000 for those who first retired prior to the
effective date of this amendatory Act of the 103rd General
Assembly) $3,000 plus the excess of the normal, survivor
and additional credits, including interest thereon, but
excluding those allowed during a period of disability, at
the effective date of the suspended annuity, plus those
allowed after his return, over all annuity payments made
to the employee;

SB2915 - 8 - LRB103 36207 RPS 66300 b
c. If no surviving spouse or child annuity is awarded
and he has one year or more of service upon return, the
higher of (a) the payment under subparagraph b of this
paragraph or (b) the payment under paragraph 1 of this
Section, taking into consideration only the service and
credits allowed after his return, plus the excess of the
normal, survivor and additional credits, including
interest thereon, excluding those allowed during periods
of disability, at the effective date of his suspended
annuity over all annuity payments made to the employee.
12. The $8,000 ($3,000 for those who first retired prior
to the effective date of this amendatory Act of the 103rd
General Assembly) $3,000 death benefit provided in paragraphs
4 and 6 shall not be payable to beneficiaries of persons who
terminated service prior to September 8, 1971, unless the
payment or agreement for payment provided by Section 7-144.2
of this Article is made prior to the date of death.
13. The increase in certain death benefits from $1,000 to
$3,000 provided by this amendatory Act of 1987 shall apply
only to deaths occurring on or after January 1, 1988.
14. The increase in certain death benefits from $3,000 to
$8,000 provided by this amendatory Act of the 103rd General
Assembly shall apply only to deaths occurring on or after
January 1, 2025.
(Source: P.A. 91-887, eff. 7-6-00.)

SB2915 - 9 - LRB103 36207 RPS 66300 b
(40 ILCS 5/7-172) (from Ch. 108 1/2, par. 7-172)
Sec. 7-172. Contributions by participating municipalities
and participating instrumentalities.
(a) Each participating municipality and each participating
instrumentality shall make payment to the fund as follows:
1. municipality contributions in an amount determined
by applying the municipality contribution rate to each
payment of earnings paid to each of its participating
employees;
2. an amount equal to the employee contributions
provided by paragraph (a) of Section 7-173, whether or not
the employee contributions are withheld as permitted by
that Section;
3. all accounts receivable, together with interest
charged thereon, as provided in Section 7-209, and any
amounts due under subsection (a-5) of Section 7-144;
4. if it has no participating employees with current
earnings, an amount payable which, over a closed period of
20 years for participating municipalities and 10 years for
participating instrumentalities, will amortize, at the
effective rate for that year, any unfunded obligation. The
unfunded obligation shall be computed as provided in
paragraph 2 of subsection (b);
5. if it has fewer than 7 participating employees or a
negative balance in its municipality reserve, the greater
of (A) an amount payable that, over a period of 20 years,

SB2915 - 10 - LRB103 36207 RPS 66300 b
will amortize at the effective rate for that year any
unfunded obligation, computed as provided in paragraph 2
of subsection (b) or (B) the amount required by paragraph
1 of this subsection (a).
(b) A separate municipality contribution rate shall be
determined for each calendar year for all participating
municipalities together with all instrumentalities thereof.
The municipality contribution rate shall be determined for
participating instrumentalities as if they were participating
municipalities. The municipality contribution rate shall be
the sum of the following percentages:
1. The percentage of earnings of all the participating
employees of all participating municipalities and
participating instrumentalities which, if paid over the
entire period of their service, will be sufficient when
combined with all employee contributions available for the
payment of benefits, to provide all annuities for
participating employees, and the $8,000 ($3,000 for those
who first retired prior to the effective date of this
amendatory Act of the 103rd General Assembly) $3,000 death
benefit payable under Sections 7-158 and 7-164, such
percentage to be known as the normal cost rate.
2. The percentage of earnings of the participating
employees of each participating municipality and
participating instrumentalities necessary to adjust for
the difference between the present value of all benefits,

SB2915 - 11 - LRB103 36207 RPS 66300 b
excluding temporary and total and permanent disability and
death benefits, to be provided for its participating
employees and the sum of its accumulated municipality
contributions and the accumulated employee contributions
and the present value of expected future employee and
municipality contributions pursuant to subparagraph 1 of
this paragraph (b). This adjustment shall be spread over a
period determined by the Board, not to exceed 30 years for
participating municipalities or 10 years for participating
instrumentalities.
3. The percentage of earnings of the participating
employees of all municipalities and participating
instrumentalities necessary to provide the present value
of all temporary and total and permanent disability
benefits granted during the most recent year for which
information is available.
4. The percentage of earnings of the participating
employees of all participating municipalities and
participating instrumentalities necessary to provide the
present value of the net single sum death benefits
expected to become payable from the reserve established
under Section 7-206 during the year for which this rate is
fixed.
5. The percentage of earnings necessary to meet any
deficiency arising in the Terminated Municipality Reserve.
(c) A separate municipality contribution rate shall be

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computed for each participating municipality or participating
instrumentality for its sheriff's law enforcement employees.
A separate municipality contribution rate shall be
computed for the sheriff's law enforcement employees of each
forest preserve district that elects to have such employees.
For the period from January 1, 1986 to December 31, 1986, such
rate shall be the forest preserve district's regular rate plus
2%.
In the event that the Board determines that there is an
actuarial deficiency in the account of any municipality with
respect to a person who has elected to participate in the Fund
under Section 3-109.1 of this Code, the Board may adjust the
municipality's contribution rate so as to make up that
deficiency over such reasonable period of time as the Board
may determine.
(d) The Board may establish a separate municipality
contribution rate for all employees who are program
participants employed under the federal Comprehensive
Employment Training Act by all of the participating
municipalities and instrumentalities. The Board may also
provide that, in lieu of a separate municipality rate for
these employees, a portion of the municipality contributions
for such program participants shall be refunded or an extra
charge assessed so that the amount of municipality
contributions retained or received by the fund for all CETA
program participants shall be an amount equal to that which

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would be provided by the separate municipality contribution
rate for all such program participants. Refunds shall be made
to prime sponsors of programs upon submission of a claim
therefor and extra charges shall be assessed to participating
municipalities and instrumentalities. In establishing the
municipality contribution rate as provided in paragraph (b) of
this Section, the use of a separate municipality contribution
rate for program participants or the refund of a portion of the
municipality contributions, as the case may be, may be
considered.
(e) Computations of municipality contribution rates for
the following calendar year shall be made prior to the
beginning of each year, from the information available at the
time the computations are made, and on the assumption that the
employees in each participating municipality or participating
instrumentality at such time will continue in service until
the end of such calendar year at their respective rates of
earnings at such time.
(f) Any municipality which is the recipient of State
allocations representing that municipality's contributions for
retirement annuity purposes on behalf of its employees as
provided in Section 12-21.16 of the Illinois Public Aid Code
shall pay the allocations so received to the Board for such
purpose. Estimates of State allocations to be received during
any taxable year shall be considered in the determination of
the municipality's tax rate for that year under Section 7-171.

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If a special tax is levied under Section 7-171, none of the
proceeds may be used to reimburse the municipality for the
amount of State allocations received and paid to the Board.
Any multiple-county or consolidated health department which
receives contributions from a county under Section 11.2 of "An
Act in relation to establishment and maintenance of county and
multiple-county health departments", approved July 9, 1943, as
amended, or distributions under Section 3 of the Department of
Public Health Act, shall use these only for municipality
contributions by the health department.
(g) Municipality contributions for the several purposes
specified shall, for township treasurers and employees in the
offices of the township treasurers who meet the qualifying
conditions for coverage hereunder, be allocated among the
several school districts and parts of school districts
serviced by such treasurers and employees in the proportion
which the amount of school funds of each district or part of a
district handled by the treasurer bears to the total amount of
all school funds handled by the treasurer.
From the funds subject to allocation among districts and
parts of districts pursuant to the School Code, the trustees
shall withhold the proportionate share of the liability for
municipality contributions imposed upon such districts by this
Section, in respect to such township treasurers and employees
and remit the same to the Board.
The municipality contribution rate for an educational

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service center shall initially be the same rate for each year
as the regional office of education or school district which
serves as its administrative agent. When actuarial data become
available, a separate rate shall be established as provided in
subparagraph (i) of this Section.
The municipality contribution rate for a public agency,
other than a vocational education cooperative, formed under
the Intergovernmental Cooperation Act shall initially be the
average rate for the municipalities which are parties to the
intergovernmental agreement. When actuarial data become
available, a separate rate shall be established as provided in
subparagraph (i) of this Section.
(h) Each participating municipality and participating
instrumentality shall make the contributions in the amounts
provided in this Section in the manner prescribed from time to
time by the Board and all such contributions shall be
obligations of the respective participating municipalities and
participating instrumentalities to this fund. The failure to
deduct any employee contributions shall not relieve the
participating municipality or participating instrumentality of
its obligation to this fund. Delinquent payments of
contributions due under this Section may, with interest, be
recovered by civil action against the participating
municipalities or participating instrumentalities.
Municipality contributions, other than the amount necessary
for employee contributions, for periods of service by

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employees from whose earnings no deductions were made for
employee contributions to the fund, may be charged to the
municipality reserve for the municipality or participating
instrumentality.
(i) Contributions by participating instrumentalities shall
be determined as provided herein except that the percentage
derived under subparagraph 2 of paragraph (b) of this Section,
and the amount payable under subparagraph 4 of paragraph (a)
of this Section, shall be based on an amortization period of 10
years.
(j) Notwithstanding the other provisions of this Section,
the additional unfunded liability accruing as a result of
Public Act 94-712 shall be amortized over a period of 30 years
beginning on January 1 of the second calendar year following
the calendar year in which Public Act 94-712 takes effect,
except that the employer may provide for a longer amortization
period by adopting a resolution or ordinance specifying a
35-year or 40-year period and submitting a certified copy of
the ordinance or resolution to the fund no later than June 1 of
the calendar year following the calendar year in which Public
Act 94-712 takes effect.
(k) If the amount of a participating employee's reported
earnings for any of the 12-month periods used to determine the
final rate of earnings exceeds the employee's 12-month
reported earnings with the same employer for the previous year
by the greater of 6% or 1.5 times the annual increase in the

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Consumer Price Index-U, as established by the United States
Department of Labor for the preceding September, the
participating municipality or participating instrumentality
that paid those earnings shall pay to the Fund, in addition to
any other contributions required under this Article, the
present value of the increase in the pension resulting from
the portion of the increase in reported earnings that is in
excess of the greater of 6% or 1.5 times the annual increase in
the Consumer Price Index-U, as determined by the Fund. This
present value shall be computed on the basis of the actuarial
assumptions and tables used in the most recent actuarial
valuation of the Fund that is available at the time of the
computation.
Whenever it determines that a payment is or may be
required under this subsection (k), the fund shall calculate
the amount of the payment and bill the participating
municipality or participating instrumentality for that amount.
The bill shall specify the calculations used to determine the
amount due. If the participating municipality or participating
instrumentality disputes the amount of the bill, it may,
within 30 days after receipt of the bill, apply to the fund in
writing for a recalculation. The application must specify in
detail the grounds of the dispute. Upon receiving a timely
application for recalculation, the fund shall review the
application and, if appropriate, recalculate the amount due.
The participating municipality and participating

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instrumentality contributions required under this subsection
(k) may be paid in the form of a lump sum within 90 days after
receipt of the bill. If the participating municipality and
participating instrumentality contributions are not paid
within 90 days after receipt of the bill, then interest will be
charged at a rate equal to the fund's annual actuarially
assumed rate of return on investment compounded annually from
the 91st day after receipt of the bill. Payments must be
concluded within 3 years after receipt of the bill by the
participating municipality or participating instrumentality.
When assessing payment for any amount due under this
subsection (k), the fund shall exclude earnings increases
resulting from overload or overtime earnings.
When assessing payment for any amount due under this
subsection (k), the fund shall exclude earnings increases
resulting from payments for unused vacation time, but only for
payments for unused vacation time made in the final 3 months of
the final rate of earnings period.
When assessing payment for any amount due under this
subsection (k), the fund shall also exclude earnings increases
attributable to standard employment promotions resulting in
increased responsibility and workload.
When assessing payment for any amount due under this
subsection (k), the fund shall exclude reportable earnings
increases resulting from periods where the member was paid
through workers' compensation.

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This subsection (k) does not apply to earnings increases
due to amounts paid as required by federal or State law or
court mandate or to earnings increases due to the
participating employee returning to the regular number of
hours worked after having a temporary reduction in the number
of hours worked.
This subsection (k) does not apply to earnings increases
paid to individuals under contracts or collective bargaining
agreements entered into, amended, or renewed before January 1,
2012 (the effective date of Public Act 97-609), earnings
increases paid to members who are 10 years or more from
retirement eligibility, or earnings increases resulting from
an increase in the number of hours required to be worked.
When assessing payment for any amount due under this
subsection (k), the fund shall also exclude earnings
attributable to personnel policies adopted before January 1,
2012 (the effective date of Public Act 97-609) as long as those
policies are not applicable to employees who begin service on
or after January 1, 2012 (the effective date of Public Act
97-609).
The change made to this Section by Public Act 100-139 is a
clarification of existing law and is intended to be
retroactive to January 1, 2012 (the effective date of Public
Act 97-609).
(Source: P.A. 102-849, eff. 5-13-22; 103-464, eff. 8-4-23.)

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(40 ILCS 5/7-205) (from Ch. 108 1/2, par. 7-205)
Sec. 7-205. Reserves for annuities. Appropriate reserves
shall be created for payment of all annuities granted under
this Article at the time such annuities are granted and in
amounts determined to be necessary under actuarial tables
adopted by the Board upon recommendation of the actuary of the
fund. All annuities payable shall be charged to the annuity
reserve.
1. Amounts credited to annuity reserves shall be derived
by transfer of all the employee credits from the appropriate
employee reserves and by charges to the municipality reserve
of those municipalities in which the retiring employee has
accumulated service. If a retiring employee has accumulated
service in more than one participating municipality or
participating instrumentality, the municipality charges for
non-concurrent service shall be calculated as follows:
(A) for purposes of calculating the annuity reserve,
an annuity will be calculated based on service and
adjusted earnings with each employer (without regard to
the vesting requirement contained in subsection (a) of
Section 7-142); and
(B) the difference between the municipality charges
for the actual annuity granted and the aggregation of the
municipality charges based upon the ratio of each from
those calculations to the aggregated total from paragraph
(A) of this item 1.

SB2915 - 21 - LRB103 36207 RPS 66300 b
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 $8,000
($3,000 for those who first retired prior to the effective
date of this amendatory Act of the 103rd General Assembly)
$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 variation reserve.

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6. There shall be credited to the annuity reserve all of
the payments 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 instrumentalities.
(Source: P.A. 97-319, eff. 1-1-12; 97-609, eff. 1-1-12;
97-813, eff. 7-13-12.)
(40 ILCS 5/7-206) (from Ch. 108 1/2, par. 7-206)
Sec. 7-206. Death Reserve. All death benefit payments
shall be charged to the Death Reserve, other than the $8,000
($3,000 for those who first retired prior to the effective
date of this amendatory Act of the 103rd General Assembly)
$3,000 death benefits paid after December 31, 1988 upon the
death of an annuitant. All contributions for death purposes
under Section 7-172(b)4 shall be credited to the same reserve.
Whenever the balance in such reserve at the close of a year

SB2915 - 23 - LRB103 36207 RPS 66300 b
exceeds 100% of the average annual charges to this account
during the 3 preceding calendar years, the basic actuarial
assumptions upon which municipality contribution rates for
these purposes are based, shall be reviewed and revised in
such manner as is deemed necessary to reduce such balance.
(Source: P.A. 89-136, eff. 7-14-95.)