If a member participated in the LABF or in an Illinois reciprocal retirement system¹ before January 1, 2011, and participates in LABF after January 1, 2011, then the member is in Tier 1.

The following details are highlights of the “Tier 1” pension benefits:

Eligibility for Employee Annuity

• Member is eligible for unreduced minimum formula annuity as follows:
  • at age 50 with 30 years of service; or
  • at age 55 with 25 years of service; or
  • at age 60 with 10 years of service; or
• Member is eligible for reduced minimum formula annuity as follows:
  • at age 55 with 20 years of service; reduction for early retirement equal to ¼ of 1% per month for each full month (equivalent to 3% for each full year) below age 60; or
• Member is eligible for a money purchase annuity as follows:
  • at 55 with 10 years of service; or
  • at age 60 with any number of years of service

Employee Annuity Amount:

• Minimum formula annuity benefit is 2.4% for each year of service multiplied by highest final average salary
• Minimum formula annuity benefit is subject to a maximum of 80% of the highest final average salary for any 4 consecutive years within the last 10 years of service 
• Annual increase in annuity (commonly referred to as the “COLA”) is 3% compounded

Eligibility for Annual Increase in Employee Annuity

• Annual increase in employee annuity starts on the January 1 occurring on or after the latter of:
  • attainment of age 53, or the third anniversary of the annuity start date; or
  • attainment of age 60, or the first anniversary of the annuity start date

Survivor Annuity Amounts (subject to eligibility)

• Spouse annuity:
  • Benefit is equal to 50% of participant’s annuity at date of death or earned annuity at death; or
  • $800 minimum
• ·   Child Annuity:
  • Benefit is $220 per month if a spouse survives or $250 per month if no spouse; child annuity is payable until attainment of age 18

Eligibility for Annual Increase in Spouse Annuity

• No increase

Refund of Contributions

• A member may take a refund if he or she withdraws from service before the age of 55 (with any length of service) or withdraws before age 60 with less than 10 years of service.

Employee Contributions

• 8.5%