Contributions
According to Illinois State Statutes, you must contribute 8.5% of your gross salary every payday. This deduction finances three separate benefits; 6.5% provides you with a pension when you retire, 1.5% provides your spouse’s benefit after your death, and 0.5% provides you with an automatic annual cost of living increase during retirement.
You earn interest on your contributions (except on the 0.5% deduction toward your cost of living increases) during your time in service and up to six months after withdrawal from service.
Pension deductions are not taken on overtime wages or on your final vacation check.
Through the annual tax levy, the City contributions increase your account by 6.0% and your spouse’s account by 2.0% of your salary. These contributions are for annuity purposes only and are never refundable.
Unlike some corporate plans, this plan does not permit loans or a partial withdrawal from your contributions. (back to top)
Q. If I am not married, why do I have to contribute toward a spouse’s pension?
A. State law requires a contribution rate of 8.5% from all employees regardless of their marital status. If you do not have an eligible spouse on the date you retire on annuity, the contributions you made toward the spouse’s benefit will be refunded. (back to top)