Mission Statement & History

The mission of the Policemen’s Annuity and Benefit Fund of Chicago (“PABF”) is to provide retirement, survivors, and disability benefits to sworn police members of the Chicago Police Department, their spouses, and children.

PABF’s authority, duty, and responsibility is governed by state statute and administered in compliance with Act 5 of the Illinois Pension Code. The Fund was first created in 1887 through an act of the Illinois legislature. In 1922, the laws governing police pensions were significantly restructured and re-codified forming the statutory basis under which the Fund is currently administered. The Fund’s authority, duties, and responsibilities derive from the statutory language of the Pension Code and is administered pursuant to those statutes by the Retirement Board of Trustees (“The Board”).

The PABF is a single employer, defined benefit pension plan. A defined benefit pension plan guarantees a specific retirement benefit amount for each participant predetermined by a formula based on the employee’s earnings history, tenure of service, and age. The Fund is a qualified 401(a) plan under the Internal Revenue Code.

The Board

The Board is composed of eight (8) trustees: four (4) elected members, with one elected from each rank of police officer, sergeant, lieutenant, and one from the retired members and their widows; and four (4) appointed by the Mayor of the City of Chicago. The Board elects one trustee as President, one as Vice President, and one as Recording Secretary.

The Board of Trustees administers benefits, manages the Fund’s assets, and employs staff members. All members of the Board of Trustees are fiduciaries with respect to the Fund and are statutorily mandated to discharge their duties as such solely in the interest of the Fund’s participants and beneficiaries. The Board is required by law to hold regular meetings each month and submit a detailed report of the affairs of the Fund to the State and to the City Council of Chicago each year.

The Board, among its many other duties, is required by law to:

Consider and approve all applications for annuity and benefits
Invest the assets of the Fund pursuant to statutory regulations
Develop rules and regulations for the proper conduct of the affairs of the Fund
Conduct an annual audit of the accounts of the Fund by a certified public accountant
Employ an enrolled actuary to provide an annual actuarial statement

The Board appoints an Executive Director to oversee all administrative functions and supervise office staff. The Executive Director ensures all Board decisions and policies are implemented and properly executed.

The Fund supports diversity and equal opportunity in all aspects of Fund operations. The Board is committed to having staff, service providers and an investment portfolio that represents a variety of backgrounds, perspectives, and skills. The Board believes that the more inclusive the Fund is, the better it is for its members and for the community.