Annual Contribution Statements

Active members were sent Contribution Statements by USPS in early August reflecting each member’s accrued and vested 9 1/8% contribution of “pensionable salary” to the Fund. “Pensionable Salary” is the salary attached to rank and grade as negotiated by Local 2, it does not include overtime and other pay additions except for “duty availability time.” Employee contributions are split across various benefit funding reserves: Retirement Annuity - 7½%, Spousal (Widow) Annuity - 1½%, Automatic Increase (COLA) - 3/8 of 1%, and Ordinary Disability -1/8 of 1%.  All members contribute to each reserve through bi-monthly payroll deduction while in active service.
 
Employee contributions, except Ordinary Disability, are refundable to the member should they leave active service and not be eligible for a benefit from the Fund. If the member is unmarried at the time of receipt of a retirement annuity, Spousal (Widow) Annuity contributions may also be refundable to the member. Should the member pass away, contributions for retirement and spousal annuity in excess of benefits paid by the Fund are refundable to the Member’s estate. Contributions for retirement and spousal annuity received are improved with 3% interest while the member is in active service. The definition of active service includes members receiving a disability annuity from the Fund. 
 
It is important to remember that contributions to the Fund do not determine or impact the benefit that you may be entitled to at retirement or should you become incapacitated. CFD sworn members are all participants in the Annuity and Benefit Fund which is a Defined Benefit Plan.  Benefits paid to retiring members are determined by creditable service, final average salary, and age. Article 6 of the Illinois Pension Code is the governing plan document.    
 

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