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.
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Terms Used In Illinois Compiled Statutes 40 ILCS 5/1A-102

  • 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. See Illinois Compiled Statutes 40 ILCS 5/1A-102
  • 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. See Illinois Compiled Statutes 40 ILCS 5/1A-102
  • Amortization: Paying off a loan by regular installments.
  • Annuity: A periodic (usually annual) payment of a fixed sum of money for either the life of the recipient or for a fixed number of years. A series of payments under a contract from an insurance company, a trust company, or an individual. Annuity payments are made at regular intervals over a period of more than one full year.
  • Assets: (1) The property comprising the estate of a deceased person, or (2) the property in a trust account.
  • Beneficiary: A person who is entitled to receive the benefits or proceeds of a will, trust, insurance policy, retirement plan, annuity, or other contract. Source: OCC
  • 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. See Illinois Compiled Statutes 40 ILCS 5/1A-102
  • Corporation: A legal entity owned by the holders of shares of stock that have been issued, and that can own, receive, and transfer property, and carry on business in its own name.
  • Department: means the Department of Insurance of the State of Illinois. See Illinois Compiled Statutes 40 ILCS 5/1A-102
  • Director: means the Director of the Department of Insurance. See Illinois Compiled Statutes 40 ILCS 5/1A-102
  • Division: means the Public Pension Division of the Department of Insurance. See Illinois Compiled Statutes 40 ILCS 5/1A-102
  • Fair market value: The price at which an asset would change hands in a transaction between a willing, informed buyer and a willing, informed seller.
  • Fiscal year: The fiscal year is the accounting period for the government. For the federal government, this begins on October 1 and ends on September 30. The fiscal year is designated by the calendar year in which it ends; for example, fiscal year 2006 begins on October 1, 2005 and ends on September 30, 2006.
  • 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). See Illinois Compiled Statutes 40 ILCS 5/1A-102
  • 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. See Illinois Compiled Statutes 40 ILCS 5/1A-102
  • Pension fund: means any public pension fund, annuity and benefit fund, or retirement system established under this Code. See Illinois Compiled Statutes 40 ILCS 5/1A-102
  • State: when applied to different parts of the United States, may be construed to include the District of Columbia and the several territories, and the words "United States" may be construed to include the said district and territories. See Illinois Compiled Statutes 5 ILCS 70/1.14
  • 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. See Illinois Compiled Statutes 40 ILCS 5/1A-102
  • Trustee: A person or institution holding and administering property in trust.
  • Unfunded accrued liability: means the excess of the accrued liability over the actuarial value of the assets of a plan. See Illinois Compiled Statutes 40 ILCS 5/1A-102

    •      “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.
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