Annuitants

City Provided Health Insurance Plans

Members of CFD that are retiring and staying in any City of Chicago Health Insurance Plan should note, the Firemen’s Annuity and Benefit Fund of Chicago (“Fund”) is not the insurance provider at retirement, it simply facilitates insurance premium payments to the City of Chicago (“City”). The City remains as the insurance provider for any City Health Insurance Plan offered to retirees. The Fund is not involved in the enrollment process other than as a courtesy to the City. The Fund currently has members sign the City’s insurance enrollment form and then forwards that form to the City of Chicago Benefits Management Office.

The Fund has no control over when the City updates member status from active to retired, when BlueCross/BlueShield of Illinois is notified or when new cards are sent out. Also, the Fund does not have any knowledge of the specific plan or coverage maintained by retirees. All insurance questions should be directed to the City’s Benefits Service Center at (877) 299-5111. A benefits portal is also available online through the city for retirees.

There are other group health insurance plans offered by third parties to Fund retirees no longer in the City of Chicago Health Insurance Plan. The Fund does not solicit or endorse any group health insurance plan, nor does it host or participate in the enrollment process. The Fund only supports the completion of the required deduction authorization form and withholds premiums as instructed by the member, which it then directs to the respective approved group retiree health insurance provider. Additionally, the Fund does not receive any notice or have knowledge regarding changes in a member’s coverage or premium amount.

If there are questions regarding your selected group retiree healthcare provider: for the BCBS plan call (877) 566-8520 if you are over 65 years of age; if you are under 65 years of age, please call (800) 292-6398; or for Local’s 2 Aetna Plan, please call RetireeFirst at (312) 248-6508 if you are over 65 years of age and (312) 467-7440 of you are under 65 years of age. Please understand, the Fund does not have any authority to discuss, investigate, or solve health insurance related questions or concerns outside of processing the monthly premium deduction.

Department of Finance - Benefits Management Division: (877) 299-5111

Blue Advantage HMO (Medical): (800) 730-8504

EyeMed Vision (Blue Advantage HMO): (866) 273-0817

Unicare Performance HMO (Medical): (312) 234-8855

UniView Vision (Unicare Performance HMO): (888) 884-8428

Blue Cross and Blue Shield (PPO and Blue Edge HCA): (800) 772-6895

Davis Vision (PPO and BlueEdge HCA): (800) 999-5431

Encompass (PPO and BlueEdge HCA Medical Advisor): (800) 373-3727

Caremark Prescription Drugs (PPO and BlueEdge HCA): (866) 748-0028

CompBenefits Dental PPO: (800) 837-2341

BlueCare Dental HMO: (800) 323-7201

PayFlex (2007 FSA Services): (800) 284-4885

Ceridian (2006 FSA Services): (877) 799-8820

Nationwide Retirement Solutions (Deferred Compensation): (312) 443-1975

Metropolitan Life (Universal Life Insurance): (800) 634-5007

Prudential (Term Life Insurance): (800) 778-3827

Standard Insurance (Long Term Disability: (800) 368-1135

As of January 2012, retired participants that are Illinois residents do not pay State income tax in the state of Illinois on Retirement Income. Participants should consult their income tax professional to determine the taxability of benefits among different states.

Retirement benefits are subject to federal income tax. However, participant contributions made prior to January 1, 1982 (Investment in the contract) were taxed as income at the time you received that payroll and are non-taxable as distributed by the Fund as retirement income. Each year a portion of retirement income will be considered non-taxable (excluded) until those contributions are exhausted. Participants receive a 1099R in January stating the amount of their taxable benefit.

Annuitants Frequently Asked Questions

*The following information is presented for general informational purposes only and should not be relied on as legal interpretation. The provision of Fund benefits is governed by the Illinois Pension Code (40 ILCS 5/1 et seq). Specific information relating to the Fund may be found in Article 6 of the Illinois Pension Code (40 ILCS 5/6) and expressly supersedes anything stated or implied herein to the contrary.

Retirement benefits are subject to federal income tax. However, participant contributions made prior to January 1, 1982 were taxed as income at the time you received that payroll and are non-taxable as distributed by the Fund as retirement income. Each year a portion of retirement income will be considered non-taxable (excluded) until those contributions are exhausted. Participants receive a 1099R in January stating the amount of their taxable benefit.

Social Security benefits may be reduced for participants entitled to receive pensions from State and Municipal pension plans. Participants may contact the Social Security administration at 800-772-1213 or visit the website at www.ssa.gov to determine what benefits you may be entitled to.

If a participant should become mentally or physically disabled, the Retirement Board has the ability to approve payment of benefits to the individual(s) legally authorized to care for them. This usually can be done with a power of attorney and a doctor’s letter confirming the participant is disabled. Certain other instances may require that Court ordered Guardianship on behalf of a participant be established.

A participant who continues to be disabled beyond the maximum period of eligibility for ordinary disability and who withdraws while still so disabled and before age 50, with less than 20 years of service, may be eligible for an annuity provided from the amounts accumulated to their credit from salary deductions and contributions by the city for retirement annuity or may elect to take a refund of the amounts they contributed to the Fund.

Participants may be granted permission to reside out of state by the Retirement Board. All requests to reside out of state must be in writing. The Board will review requests at a scheduled Board meeting and advise participants of their decision.

Pursuant to the labor contract between the City of Chicago and Chicago Firefighters union, Local No. 2 dated July 1, 2012 through June 30, 2017 some employees retiring at age 55 may be eligible to participate in a healthcare incentive program. Additionally, the contract provides that all employees retiring at age 60 will receive City-paid healthcare.

Participants may contact the Fund at any time concerning their benefits. Participants may request a written estimate of benefits prior to retirement. Detailed estimates of retirement benefits, based on a specific anticipated date of retirement, will be prepared for participants upon request. Because of the many variables that impact upon a member’s final retirement annuity, detailed estimates are not prepared for periods beyond two years of estimated retirement.Any estimates provided are merely “estimates” and are not binding on the Fund and should not be conclusively relied upon. All benefits must be actually granted by the Retirement Board in accordance with the provisions of the Act.

After having received an estimate of your retirement benefits based upon a fixed date of retirement, participants should contact The Chicago Fire Department Personnel division 3510 S Michigan Ave at 312-746-6964 to make an appointment to complete all necessary paperwork, including a formal resignation from the Chicago Fire Department. Upon receiving an appointment with CFD Personnel Dept., contact the Fund office at 312-726-5823 for an appointment to complete a formal application for retirement benefits. The appointment with the Fund must be after an employee’s appointment with CFD Personnel as documentation completed at the CFD exit interview is necessary for applying for annuity benefits with the Fund.

Participants retiring from active employment must bring a copy of the City of Chicago, “End of Employment Form” provided by the Chicago Fire Department Personnel Department at the time of resignation. Participants should also bring certified or original copies of any certificates not on file with the Fund, the social security numbers for anyone they would like on the insurance and a voided check if requesting direct deposit.

Normally, a participant receives their first annuity check at the end of the month immediately succeeding the month the participant actually left employment with the Chicago Fire Department. However, the Fund cannot calculate a final benefit amount until final payroll data is received from the City of Chicago. Upon receipt of final payroll data, staff completes final calculations based on this information and presents this information to the Board to grant the benefit application. The Board reviews and approves applications once a month at its regularly scheduled Board meeting, generally the third Wednesday of every month.

Retirement Benefits are always paid on the last business day of each month.

Under certain circumstances, time loss is eligible for purchase under applicable governing pension statutes. Upon request, Fund staff will advise participants of the amounts of eligible service available that may be purchased. Calculations of the required contributions and applicable interest will be included. Service Credit generally eligible for purchase include military service, the 23 days in 1980 which reflects strike time, periods of employment as a sworn Chicago Police Officer, periods of suspension from duty not to exceed a total of one year during the total period of service and previously unpaid refunds of contributions within certain timeframes.

Each participant’s total contribution percentage is currently 9 1/8% of salary broken
down as follows:
• 7 1/8% for Firefighter’s Annuity
• 1 ½% for Spouse’s Annuity
• 3/8 of 1% for the Increment after Retirement (Annuity Increment)
• 1/8 of 1% for Ordinary Disability Benefits (this is not refundable)

Beginning January 1, 1999, salary includes the additional compensation payable to participants by virtue of being licensed as an Emergency Medical Technician (EMT). Beginning January 16, 2004, and for any prior periods for which applicable contributions have been paid, salary shall include the classified career service rank of Ambulance Commander. Beginning January 16, 2004, and for any prior period for which applicable contributions have been paid, pensionable salary shall include duty availability pay received by the participant.

Beginning January 16, 2004, for the purpose of computing employee and City contributions, salary means the actual salary attached to the exempt rank position held by the participant. For the purpose of computing benefits, salary means the actual salary attached to the exempt rank position held by the participant if (1) the contributions on the exempt rank salary for all exempt periods after January 1, 1994 have been paid, (2) the participant held an exempt position for at least 5 consecutive years, (3) the participant held the rank of battalion chief or field officer for at least 5 years during the exempt period, and (4) the participant was born before 1955; otherwise salary means the salary attached to the career service rank held by the
participant.

Beginning January 1, 2011, for members hired on or after January 1, 2011, the annual salary shall not exceed $106,800; however, that amount shall be increased annually by the lesser of (1) 3% including all previous adjustments or (2) ½ of the annual unadjusted percentage increase (but not less than zero) in the consumer price index-u for the 12-month period ending with the September preceding each November 1st including all previous adjustments. Annual Salary Caps.

During years of active service, participant contributions for retirement and spousal annuities are improved with 3% interest. Contributions for the automatic increase and ordinary disability benefit do not earn interest.

The city's contributions are set by statute. Currently, the city contributes a static dollar amount through year 2020. In 2020 the city is required to contribute an annual amount sufferment to bring the total assets of the Fund up to 90% of the total actuarial liability of the Fund by the end of fiscal year 2055.

State statutes that govern the benefit provisions of the plan do not permit participant loans or partial withdrawals.

Only the amount participants contribute while active and statutory 3% interest on the retirement and spousal annuity portion are refundable to the participant. The 1/8th of 1% that participants contribute for ordinary disability benefits is not refundable to them.

If the spouse pre-deceases a participant or should the participant and spouse divorce after retirement, the contributions made on the spouse’s behalf are not refundable to the participant.

Generally, the benefits paid to retired participants will exceed the total amount of their contributions within two years of retirement. Upon the death of a participant, the balance of accumulated contributions that were not paid out, in either the form of an annuity for a participant, spouse or children, are refunded to the participant’s estate as named either in a Will, Small Estate Affidavit or Letters of Office. Participants should consult with their personal attorney to discuss this issue.

When the total value of an Illinois decedent’s estate is less than $100,000.00 AND the estate does not own any real estate, a small estate affidavit may be able to be used if the applicant is able to meet all of the requirements of the small estate affidavit. If the estate is $100,000.00 and greater the executor will have to go to Court and get Letters of Office (Administration) naming an administrator of the estate.

Current federal law allows the transfer or rollover of 457 deferred compensation plan assets to this Fund in order to pay back a refund taken by a participant within the prescribed time frame.

Generally, the benefits paid to retired participants will exceed the total amount of their contributions within two years of retirement. Upon the death of a participant, the balance of accumulated contributions that were not paid out, in either the form of an annuity for a participant, spouse or children, are refunded to the participant’s estate as named either in a Will, Small Estate Affidavit or Letters of Office. Participants should consult with their personal attorney to discuss this issue.

The Fund does not provide legal advice about proper division of marital and retirement assets. However, this Fund is subject to Qualified Illinois Domestic Relations Orders (QILDRO's) pursuant to the Illinois Pension Code. A QILDRO may require this Fund to pay all or a portion of a participant’s retirement benefits to an “alternate payee”. An alternate payee is usually a participant’s former spouse, but may also be a current spouse, child or other dependent of the participant. Any participant that has questions about a QILDRO should discuss it with their attorney. This Fund has an information booklet and required forms available upon request.

For the protection of a participant’s family, it is very important for participants to submit the following documents. Upon request, this Fund will make copies and return the originals to you.

• A certified copy of their birth certificate
• Name and birthdate of spouse (or civil union partner) and a certified copy of the spouse's (or civil union partner's) birth certificate
• Certified copy of marriage certificate or certificate representing a valid Illinois civil union
• Names and birthdates of all children and a certified copy of the children's birth certificates and formal notices of legal adoption (if applicable)
• Certified copies of divorce decrees or death certificates from any previous marriages of the participant and spouse
• Documentation attesting to the disability of any permanently disabled child

If you need to obtain copies of these certificates, the following agencies can assist you.

To obtain a birth, death, or marriage certificate on file in Cook County: Cook County Clerk’s Office

Phone: 312-603-7790

www.cookcountyclerk.com

*Birth and death certificates may also be obtained, for an additional fee, at most local currency exchanges.

To obtain a copy of a divorce decree, contact:
Cook County Clerk of the Court
Phone: 312-603-6300
www.cookcountyclerkofcourt.org

To report a death, please contact the FABF office at info@fabf.org or call (312) 726-5823.