The LABF covers individuals who are employed by the City of Chicago in positions classified as "labor service," certain Board of Education employees under the labor service classification and individuals employed by the Laborers', Policemen's and Firemen's Annuity and Benefit Funds.
The LABF was created to provide retirement, disability and survivor benefits to its members and their beneficiaries. Your rights and obligation as a LABF member are governed by Chapter 40, Act 5, Article 11, of the Illinois Compiled Statutes. The only way your participation in LABF will change is if you resign your position and take a refund of all your contributions.
State law requires that you contribute 8.5% of your gross salary every pay day. This deduction finances three separate benefits; 6.5% provides you with a pension when you retire, 1.5% provides your spouse with a widow’s annuity after your death and .5% provides you with an automatic annual cost of living increase during retirement.
Active members are classified by tiers, 'Tier 1' and 'Tier 2'. If you were hired prior to January 1, 2011 you are a Tier 1 member. If you were hired on or after January 1, 2011 you are a Tier 2 member.
If a member participated in the LABF or in an Illinois reciprocal retirement system (with the exception of the Judges’ Retirement System and the General Assembly Retirement System) before January 1, 2011, and participates in LABF after January 1, 2011, then the member is in Tier 1.
On April 14, 2010, the Illinois governor signed Senate Bill 1946 (Public Act 96-0889). The legislation created a “Second Tier” of pension benefits applicable to public employees who first participated in LABF or an Illinois reciprocal retirement system on or after January 1, 2011.
For more information regarding Tier 2, click “here.”
The LABF no longer uses Social Security numbers on its correspondence. Each member is assigned a unique five-digit 'Office Number.' It is only used by the LABF and will appear on all communications you receive from the Fund. We encourage you to use this Office Number when contacting the LABF.
All active employees are sent an annual Participant Statement. This statement reflects the amount of money you have contributed toward your retirement as of the last day of the calendar year. It also includes important member data and lists your beneficiaries on file with the LABF.
Once received, please read your statement carefully. If there are any errors or omissions, resolving them immediately may save you time and trouble at the time of retirement. Please note, if you owe any money to the LABF, please contact the Fund immediately to arrange a payment plan.
As an active member of the LABF, 8.5% of your pensionable salary is contributed into the Fund. If you, or your survivors who may be entitled to an annuity, die before all your contributions are collected back through withdrawal, retirement payments, or a survivor annuity, who would you like to receive your contributions?
As a member, you must have a completed and notarized Beneficiary Designation Form on file with the LABF. Your designated beneficiary may be anyone you choose. If you are married, state law establishes a surviving spouse’s annuity benefit for your eligible spouse immediately after your death regardless of whether a Beneficiary Designation Form is on file. However, if you do not have an eligible spouse or your spouse does not receive an annuity long enough to “collect back” all your contributions, the person(s) you designate as your beneficiary(ies) will receive any remaining contributions.
Please check your annual Participant Statement to confirm your beneficiary designation. If you would like to change your designation(s), you can obtain a Beneficiary Designation Form from this website or by contacting the LABF office. This form must be notarized and on file with the LABF prior to your death to be valid.
An Inactive member is an individual who has contributions in the LABF but no longer work for the City, the Board of Education or a Retirement Board of the City of Chicago. An inactive member may work for a reciprocal fund and may, upon retirement, combine LABF service with service from their current reciprocal employer.
Currently, the LABF holds contributions from Inactive Members
who have never filed for pension benefits or a refund of contributions. We are trying to find these members. Click here
to review the Unclaimed Contributions List to see if you, or someone you know, may be owed a benefit or a refund of contributions.
Also, the heir(s) of deceased members may be entitled to a benefit or a refund of contributions. If you know the heir(s) of a deceased member whose name appears on the Unclaimed Contributions List, please refer them to this website to request a call from a Benefits Counselor for information on determining eligibility. Thank you for your help with this matter.
Please keep your contact information with the LABF current.