Tier 1 members

Minimum Formula Annuities (40 ILCS 5/5-127)

Any participant having at least 20 years of service shall receive an annuity equal to 50% of the final average salary, plus an additional 2.5% of average salary for each year of service or fraction thereof beyond 20 years of service, however the annuity may not exceed 75% of such average salary. The final average salary is the highest 4 consecutive years of the last 10 years of service. A participant may withdraw with 20 years of service regardless of age. The annuity payment will begin when the participant attains 50 years of age and has withdrawn from service. This service is reduced by any lost time at date of withdrawal.

Withdrawal at Mandatory Retirement Age (40 ILCS 5/5-129.1)

Active participants who are required to withdraw from service at the mandatory retirement age of 63 and have at least 10 but less than 20 years of service credit may elect to receive an annuity equal to 30% of their final average salary for the first 10 years of service plus 2% of their final average salary for each completed year of service or fraction thereof in excess of 10, but not to exceed a maximum of 48% of final average salary. The final average salary is the highest 4 consecutive years of the last 10 years of service. A participant whose retirement annuity is calculated under this section shall qualify for cost of living adjustment (COLA) increases.

Withdrawal Before Age 50, 10 or More but Less than 20 Years of Service (40 ILCS 5/5-130)

A participant who withdraws from service with at least 10 but less than 20 years of service may receive a money purchase annuity equal to the sum of accumulated age and service contributions (7% of your pensionable salary) plus 10% of the city age and service contributions for each completed year of service after the first 10 years. The sum of the contributions are divided by a factor that is determined by the participant’s age at date of retirement and then converted into an annuity. The participant may also elect to receive a refund of contributions including 1.5% interest.

Automatic Annual Increase

Participants Born Before January 1, 1966
Tier 1 participants born before January 1, 1966, retiring with at least 20 years of service will receive an increase of 3% based on their originally granted annuity beginning on the later of the 1st of the month after the participant reaches age 55 or the 1st of the month after the participant has been retired at least one year. This annuity shall be increased by an additional 3% of the originally granted annuity each January 1st thereafter continuing for their lifetime.



Participants Born On or After January 1, 1966
Tier 1 participants born on or after January 1, 1966 will receive an increase of 1.5% based on their originally granted annuity beginning on the later of the 1st of the month after the participant reaches age 60 or the 1st of the month after the participant has been retired at least one year.
This annuity shall be increased by an additional 1.5% of the originally granted annuity each January 1st thereafter for a maximum of 20 increases or 30%.