Firemen's Annuity and Benefit Fund of Chicago
 


A RETIREMENT FUND  DEDICATED TO THOSE WHO ARE THERE FOR OTHERS

  


 
 
 
 
 
 
 
 
 
 
 
 
 
 
 

Questions concerning an employee participant’s individual benefit rights may be directed to the Fund office by e-mail to info@fabf.org; by phone at (312) 726-5823; or in writing to 20 S. Clark St. Suite 1400, Chicago, IL 60603.  Responses will be provided as soon as possible.

TIER 1: ANNUITIES FOR PARTICIPANTS HIRED BEFORE JANUARY 1, 2011

RETIREMENT ANNUITIES: PARTICIPANTS WITH MORE THAN 20 YEARS OF SERVICE
Minimum Formula Annuities are payable to participants that have attained age 50 and have at least 20 years of accumulated service credit, or after December 31, 1990 a participant may withdraw with 20 years of service regardless of their age, and receive this annuity upon attainment of age 50.

The calculation of a Minimum Formula Annuity is equal to 50% of the average salary for the highest 48 consecutive months of the last 10 years of service, plus an additional 2.5% of such average salary for each year of service or fraction thereof beyond 20 years of service based on the entrance date into the Fund.  This service is reduced by any lost time at date of withdrawal.  Minimum Formula Annuity benefits may not exceed 75% of such final average salary.

Effective January 1, 2004, the minimum annuity for those who have retired from service at age 50 or over with 20 or more years of service shall be $950.00 per month, and effective January 1, 2005 the minimum annuity shall be $1,050.

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ANNUITIES FOR PARTICIPANTS WITH MORE THAN TEN BUT LESS THAN TWENTY YEARS OF SERVICE

Non-Compulsory (Earned Annuities)
Basic vesting in the plan occurs after 10 years of creditable service.  Calculations for earned annuities are based upon the amount the participant has contributed to the Fund, partial City contributions, interest and years of service.

Earned or Money Purchase annuities are payable to a participant who has attained age 50 with at least 10 years of service.  If a fireman has 10 years of service and has not yet attained age 50, his earned annuity shall be fixed as of and be computed as if he were exactly 50 and the benefit will be payable upon his attainment of age 50 and upon proper application and Board approval.

Compulsory Retirement
As of December 31, 2000, the Chicago Fire Department’s compulsory retirement age is 63 for firefighters.  There is no current compulsory retirement age for paramedics.

Effective January 16, 2004,  a participant who is required to withdraw from service due to attainment of compulsory retirement age and has at least 10 but less than 20 years of service credit may elect to receive an annuity equal to 30% of average salary for the first 10 years of service plus 2% of average salary for each completed year of service or fraction thereof in excess of 10 years, but not to exceed a maximum of 50% of average salary (average of the participant’s  highest 4 consecutive years of salary within the last 10 years of service).  The participant is entitled to statutory post retirement annual increases.

AUTOMATIC ANNUAL POST RETIREMENT INCREASES FOR PARTICIPANTS
Beginning January 1, 2004, participants born before January 1, 1955, retiring with at least  twenty years of service will receive an annual 3% increase based on their original annuity continuing for their lifetime, based upon both of the following conditions being met:

- The participant must have attained age 55
- He must have been retired at least one year and one month

If a participant is over 54 when he retires, the increment begins the first of the month following the first anniversary of his retirement and again each January 1st thereafter for life.

Participants born on or after January 1, 1955 will receive an increase of 1 ½ % of their original annuity for a maximum of 20 increases or 30%. Any participant retiring before age 59 will receive their increment the first month following the attainment of age 60 and again each January 1st after the following conditions are met:

- The participant must have attained age 60
- He must have been retired at least one year and one month


TIER 2: ANNUITIES FOR ELIGIBLE PARTICIPANTS  HIRED ON OR AFTER JANUARY 1, 2011

ANNUITIES FOR PARTICIPANTS WITH MORE THAN 10 YEARS OF SERVICE
A participant age 55 or more that has 10 or more years of service shall be entitled at his option to receive a monthly retirement annuity for his creditable service computed by multiplying 2.5% for each year of service by his or her final average salary.

The retirement annuity of a participant who is retiring after attaining age 50 with 10 or more years of credible service shall be reduced by ½ of 1% for each month that the participant’s is under 55.

The maximum retirement annuity shall be 75% of final average salary.  “Final Average Salary” means the average monthly salary obtained by dividing the total salary of the participant  during the 96 consecutive months of service within the last 120 months of service in which the total salary was the highest by the number of months of service in that period.

For all purposes under this Plan, including without limitation the calculation of benefits and employee contributions, the annual salary based on the plan year of a member or participant to whom this section applies shall not exceed $106,800; however, that amount shall annually thereafter be increased by the lesser of (i) 3% of that amount, including all previous adjustments, or (ii) one-half of the annual unadjusted percentage increase (but not less than zero) in the consumer price index-u for the 12 months ending with the September preceding each November 1, including all previous adjustments.

AUTOMATIC ANNUAL INCREASES FOR TIER 2 PARTICIPANTS
The monthly annuity of a participant shall be increased on the January 1st after the attainment of age 60 or the 1st anniversary of the annuity start date, whichever is later.

Each annual increase shall be calculated at 3% or one-half of the annual unadjusted percentage increase (but not less than zero) in the consumer price index-u for the 12 months ending with the September preceding each November 1, whichever is less, of the originally granted retirement annuity. If the annual unadjusted percentage change in the consumer price index-u for a 12-month period ending in September is zero or, when compared with the preceding period, decreases, then the annuity shall not be increased.

 

 

 

   
   
       
Firemen's Annuity and Benefit Fund of Chicago
20 South Clark Street, Suite 1400
Chicago, IL 60603

Phone: (312) 726-5823
Fax: (312) 726-2316