An employee of the County who is currently having contributions deducted from their paycheck for pension purposes; this includes participants currently receiving disability benefits.
A monthly benefit from the Fund payable upon separation from service; also known as a Pension.
A surviving spouse, child, or person designated as a beneficiary by the participant; can also be a trust or an estate.
A person born to or adopted by the participant prior to the participant’s pension start date or date of death for active participants, and who is age 18 or under.
Cost of Living Adjustment
(COLA) The Illinois Pension Code provides retirees with an automatic increase in annuity, known as a Cost of Living Adjustment (COLA). The purpose of the COLA is to ensure that the purchasing power of your pension is not eroded by inflation; so as inflation increases, so does your pension.
A death that occurs as a result of an injury sustained while the participant is performing his or her job-related duties.
Effective Interest Rate
Current interest rate earned on account balances. As of now, the effective rate is 3% and has been since January 1, 1954.
Final Average Salary (FAS)
Salary used to calculate your pension benefit. For Tier 1, your FAS is defined as the highest 4 consecutive years (48 months) of salary within the last 10 years of service. For Tier 2, your FAS is defined as the highest 8 consecutive years (96 months) of salary within the last 10 years of service.
An employee who is no longer working for the County and who made contributions in the past to the Fund and still has contributions on account with the Fund.
that is established for the non-spouse beneficiary
of the IRA; the inherited IRA must be maintained in the name of the decedent and the beneficiary, and the tax identification number of the beneficiary.
A monthly pension that is paid for the life of the retiree. Life annuities occur when a participant’s total monthly benefit is more than $150.00 a month. The total monthly benefit would include benefits from both the County and any Reciprocal Funds included when the monthly benefit was calculated.
The maximum pension benefit you can receive is 80% of your final average salary (FAS).
Minimum Formula Annuity
Pension calculated using participant’s age, years of service credit and final average salary.
Minimum Retirement Age (Tier 1)
Age 50, provided you have 10 or more years of service credit. However, if you start your annuity below age 60 with less than 30 years of service, you are subject to an age reduction, which is ½ of 1% for each month you start your pension below the age of 60. For example: If you had between 10-29 years of service and you were starting your pension at age 50, your pension would be reduced by 60% for being 10 years below the age of 60.
Minimum Retirement Age
(Tier 2) Age 62, provided you have 10 or more years of service credit. However, if you start your annuity below age 67, you are subject to an age reduction, which is ½ of 1% for each month you start your pension below the age of 67. For example: If you had 10 or more years of service and you were starting your pension at age 62, your pension would be reduced by 30% for being 5 years below the age of 67.
Money Purchase Annuity
Pension calculated using participant’s age, contributions, and life expectancy factor.
Normal Retirement Age
Tier 1 is defined as age 60 with 10 or more years of service, or minimum age 50 with 30 or more years of service. Tier 2 is considered to be age 67 with 10 or more years of service.
A death that occurs outside of job-related duties.
The portion of a participant’s salary used to calculate the amount of contributions to be withheld from their paycheck. This includes regular salary and vacation pay; it does not include comp time, overtime, or extra salary.
Qualifying for a Pension (Vesting)
You are considered to be vested if you have 10 or more years of service credit. This may be 10 years as a County employee or based on a combination of years of service with another Reciprocal Fund
. For example: 6 years of County service plus 4 years of with another reciprocal fund equals 10 years of total service.
Reduced Benefit (Annuity)
A monthly pension benefit that is reduced 0.5% per month for each month the participant is under age 60. This applies to participants with less than 30 years of service credit.
An employee who is receiving a monthly pension from the Fund; also known as an retiree.
Separation from Service
When a member resigns or is discharged from their position with the County.
1) The actual period of time the employee contributes or has contributed to the Fund. 2) Periods of time that are certified by a Reciprocal Fund for use under the Illinois Retirement Systems Reciprocal Act.
1) A person who is married to the participant prior to the participant’s pension start date and is still married to the participant on the date of the participant’s death or 2) a person who is married to an active participant prior to the date of death or 3) a person who married the participant after the participant’s pension start date and was married for at least one year after the participant’s pension start date or 4) a person who was married to an inactive participant prior to their date of separation from service. Marriage refers to both legal marriages and civil unions.
A monthly pension paid for a specific period of time. Term annuities occur when a participant’s total monthly benefit is less than $150.00 or less a month. The total monthly benefit would include benefits from both the County and any Reciprocal Funds included when the monthly benefit was calculated.
Tier 1 Participants
Any person who first contributed to the Fund prior to January 1, 2011, and any person who first contributed to a Reciprocal Retirement System, other than Judges’ or General Assembly Retirement Systems, prior to January 1, 2011.
Tier 2 Participants
Any person who first contributed to the Fund or a Reciprocal Retirement System on or after January 1, 2011.
Unreduced Benefit (Annuity)
A monthly pension not reduced due to the participant being under age 60 with less than 30 years of service credit