Estimates
You should request a pension estimate from LABF at least six months to one year prior to your anticipated retirement. To obtain an estimate of your retirement benefits, call LABF at (312) 236-2065. A summary of the estimate review follows.
LABF offers a defined benefit plan. Your pension is calculated using a formula that includes: your salary history, years of service and your age at retirement.
Our statutes currently provide a retirement annuity to eligible employees based on 2.4% for each year of credited service up to 80% of final average salary (“FAS”). If you resign effective the last working day of January, you must be on the payroll every workable day of the month to receive 6 months of service credit in that year. If you have 1 full month of service plus service in 5 additional months in the same calendar year, you will receive a full year of service credit for that year.
Final Average Salary (FAS) is the highest average monthly salary for any four consecutive years within the last ten years of service immediately preceding the date of retirement.
Age Discount is .25% per month for every month or fraction thereof that a participant is under age 60 at retirement. There is no reduction for age if participant is any of the following at retirement:
- age 60
- age 55 with at least 25 years of service
- age 50 with at least 30 years of service. (back to top)
You may also receive an annuity based upon combined service credit from two or more systems covered under the Retirement Systems Reciprocal Act. The Reciprocal Act assures full and continuous pension credit for all service in any of the participating retirement systems.
Because reciprocal cases are complex, before you retire you should contact both LABF and any other participating retirement fund to which you may have contributed for further information. Should you need to repay a refund, please remember you have to be in service to pay for past service. (back to top)
A reversionary option is also available. You may elect to reduce your monthly annuity to provide an increased annuity for your spouse or a lifetime annuity for certain family members, to begin upon your death. Several restrictions apply. For example, you must elect the reversionary option before retirement. Other rules may also apply, so please contact our office as soon as possible if you are interested in this option. (back to top)
There are two types of service payment: Account Receivable (A/R), and Unpaid Service (US). A/R is mandatory and accrues 3% interest until paid in full. US is optional and must be paid to the Fund while you are an active member and accrues 3% interest until paid in full.
- Account Receivable (A/R) – Contributions for a period of time deductions were not withheld from your paycheck and not received by the Fund. These contributions are mandatory and must be paid while you are an active employee.
- Unpaid Service (US) - If you previously received a contribution refund from the Fund, or had service where contributions were not collected, you can choose to pay all or part of this service. Service is granted in six month increments.
You may repay service payments either in one lump sum, by transferring funds from a deferred compensation account, or by installments. Please contact our office before sending any funds. Our office requires specific forms to be completed and reviewed for acceptance, prior to the rollover of funds.
If you are planning to retire any time soon, we strongly recommend that you contact the Fund before retiring. A counselor will fully explain all requirements and benefits that may apply to you.
The information provided is only an approximation of your monthly retirement benefit. Future salary, service and legislation may affect the actual monthly benefit you receive upon retirement. (back to top)