Pension Service Credit

Service credit is based upon your work history with the City, the Board of Education or the Retirement Boards. Pension contributions must be received in order for service credit to be granted.
In computing service credit under a Minimum Formula Annuity method:

  • One full month of work in a calendar year constitutes one-half year of service credit
  • Working in five additional months constitutes one full year of service credit
  • Additional service credit earned by working for a participating system (as defined in the Reciprocal Act can be added to your calculation if you elect to retire as a reciprocal annuitant with them.

The following periods of time are considered service credit for annuity and ordinary disability purposes when the required contributions are made:

  • time during which the member performed the duties of his or her position;
  • paid vacations (except final vacation);
  • leaves of absence with whole or part pay;
  • leaves of absence without pay not longer than 90 days (leave of absence without pay does not count for minimum annuity purposes or ordinary disability credit);
  • periods of disability for which the employee receives disability benefits from LABF (periods of ordinary disability do not further increase ordinary disability credit);
  • periods of disability because of heart attacks, strokes, or coronary disease for which the employee is not eligible for Duty Disability benefits but is receiving payments from Workers’ Compensation.

No credit will be granted toward any type of benefit for periods of time while on a suspension.
Service credit can also include the following:

  • Service with Chicago Transit Authority
  • Military Service
  • Repayment of refunded service
  • Service as a police officer, firefighter or teacher
  • Other service with the employer

Please contact LABF for a detailed explanation of service credit. 

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