Illinois Code § 1A-102

§ 1A-102.

Sec. 1A-102. Definitions. As used in this Article, the following terms have the meanings ascribed to them in this Section, unless the context otherwise requires: "Accrued liability" means the actuarial present value of future benefit payments and appropriate administrative expenses under a plan, reduced by the actuarial present value of all future normal costs (including any participant contributions) with respect to the participants included in the actuarial valuation of the plan. "Actuarial present value" means the single amount, as of a given valuation date, that results from applying actuarial assumptions to an amount or series of amounts payable or receivable at various times. "Actuarial value of assets" means the value assigned by the actuary to the assets of a plan for the purposes of an actuarial valuation. "Basis point" means 1/100th of one percent. "Beneficiary" means a person eligible for or receiving benefits from a pension fund as provided in the Article of this Code under which the fund is established. "Consolidated Fund" means: (i) with respect to the pension funds established under Article 3 of this Code, the Police Officers' Pension Investment Fund established under Article 22B of this Code; and (ii) with respect to the pension funds established under Article 4 of this Code, the Firefighters' Pension Investment Fund established under Article 22C of this Code. "Credited projected benefit" means that portion of a participant's projected benefit based on an allocation taking into account service to date determined in accordance with the terms of the plan based on anticipated future compensation. "Current value" means the fair market value when available; otherwise, the fair value as determined in good faith by a trustee, assuming an orderly liquidation at the time of the determination. "Department" means the Department of Insurance of the State of Illinois. "Director" means the Director of the Department of Insurance. "Division" means the Public Pension Division of the Department of Insurance. "Governmental unit" means the State of Illinois, any instrumentality or agency thereof (except transit authorities or agencies operating within or within and without cities with a population over 3,000,000), and any political subdivision or municipal corporation that establishes and maintains a public pension fund. "Normal cost" means that part of the actuarial present value of all future benefit payments and appropriate administrative expenses assigned to the current year under the actuarial valuation method used by the plan (excluding any amortization of the unfunded accrued liability). "Participant" means a participating member or deferred pensioner or annuitant of a pension fund as provided in the Article of this Code under which the pension fund is established, or a beneficiary thereof. "Pension fund" means any public pension fund, annuity and benefit fund, or retirement system established under this Code. "Plan year" means the calendar or fiscal year on which the records of a given plan are kept. "Projected benefits" means benefit amounts under a plan which are expected to be paid at various future times under a particular set of actuarial assumptions, taking into account, as applicable, the effect of advancement in age and past and anticipated future compensation and service credits. "Supplemental annual cost" means that portion of the unfunded accrued liability assigned to the current year under one of the following bases: (1) interest only on the unfunded accrued liability; (2) the level annual amount required to amortize the unfunded accrued liability over a period not exceeding 40 years; (3) the amount required for the current year to amortize the unfunded accrued liability over a period not exceeding 40 years as a level percentage of payroll. "Total annual cost" means the sum of the normal cost plus the supplemental annual cost. "Transition period" means the period described in Section 22B-120 with respect to the pension funds established under Article 3 of this Code and the period described in Section 22C-120 with respect to the pension funds established under Article 4 of this Code. "Unfunded accrued liability" means the excess of the accrued liability over the actuarial value of the assets of a plan. "Vested pension benefit" means an interest obtained by a participant or beneficiary in that part of an immediate or deferred benefit under a plan which arises from the participant's service and is not conditional upon the participant's continued service for an employer any of whose employees are covered under the plan, and which has not been forfeited under the terms of the plan. (Source: P.A. 101-610, eff. 1-1-20.)