Service Credits

Accumulation of Service Credits

Participants earn service credit in the Fund during all periods in which they perform the duties of their position and all periods of vacation, leave of absence with whole or part pay, leave of absence during which the participant was engaged in the military or naval service of the United States of America, and periods of disability for which the participant receives any disability benefit, provided that the  participant elects to make the contributions to the Fund according to the provisions of the Statute.

Participants may elect to purchase additional service credits in certain situations including periods of suspension from duty not to exceed a total of one year during the total period of service of the participant and 1980 strike time not to exceed 23 days in accordance with an agreement with the City on a settlement of the strike. Participants must elect to make the required contributions plus interest in accordance with the provisions of the Statute as though they were an active participant, based upon the salary attached to the career service rank and grade held by the participant during such absence from duty.

No payments for overtime or extra service credit shall be included in computing service of a participant and not more than one year or a proper fractional part thereof of service shall be allowed for service rendered during any calendar year.

Active participants that served in the Armed Forces of the United States prior to employment with the CFD may purchase up to 2 years of service credits in 1 month increments for pension purposes. There is no deadline for active eligible participants to purchase these credits. Interest is charged to purchase these credits. You can find the application on our website www.fabf.org/Service-Credits.  A copy of your DD 2-14 must accompany all applications.

The Firemen’s Annuity and Benefit Fund of Chicago (FABF) is reciprocal with the Policemen’s Annuity and Benefit Fund of Chicago (PABF). Active participants may transfer contributions earned in the PABF to the FABF for the purpose of annuity service credit. The participant must request a transfer of funds from PABF. Once the request has been made, FABF will advise of all statutorily required contributions owed to complete the transfer. If you have already refunded your contributions from the PABF, contact FABF directly.

In compliance with 40 ILCS 5/1-118, the Fund shall comply with the requirements of the federal Uniformed Services Employment and Reemployment Act (“USERRA”) the federal Heroes Earnings Assistance and Relief Tax Act (HEART).

The Fund shall provide pensionable service credit for military service performed while an active firefighter for all periods after September 11, 2001, in which the firefighter made the required contributions corresponding to all or any portion of their military service time for calculation of future retirement benefits in accordance with the provisions of 40 ILCS 5/6-209. Participants will receive applicable service credits only for that portion of military time for which contributions are fully paid prior to their application for retirement.

The contributions required for the purchase of these service credits are based on the full salary associated with the rank and grade held during this period of military service. If, during this period of military service, all or any portion of a member’s full salary above the military pay that was received, that portion of the required contributions has already been made. However, the member is required to pay for the remaining balance of the contributions required on the full salary.
In December 2004, the Department of Labor issued final regulations USERRA. This Act provides that certain veterans are not required to pay interest on employee contributions attributable to periods in which they served in the military, provided that the contributions are paid within a prescribed period of time. Interest for in-service military time will begin to accrue on the earlier of (1) 5 years after returning to active duty or (2) 3 times the length of time they were away.

If the pension contributions associated with these available service credits is not paid, the periods served in the military will not be counted toward overall service for pension purposes. A refund of the partial contributions made during these periods would be issued at the time of retirement.

The Fund shall comply with all of the requirements of the HEART Act for members who die or become disabled while serving in the military.

All of the above service credit purchase maybe completed with your deferred comp (nontax) account with Nationwide, click here to download the Nationwide Direct Transfer Form.