Chicago Park Disrict Human Resources Policy and Procedures ...

Pension Plan
All monthly and hourly employees are required to contribute nine percent (9%) of their gross
salary each pay period to the Park Employees' Annuity and Benefit Fund. The deduction begins
immediately upon employment and is taken in lieu of Social Security (FICA). In addition,
employees (except seasonal employees) are required to contribute $3.60 per month for a single
sum death benefit provided under the pension plan.
The plan is on a fiscal year basis from July 1 through June 30. Service credit is earned by working
a minimum of 45 hours per month (for service credit for that month), with less than 3 months
accounting for year of service; 3 to 5 months = 1/2 year of service; 6 to 8 months = 3/4 year of
service; and 9 months or more = 1 year of service.
At retirement, a minimum monthly pension benefit is payable, depending on your years of service
and salary. An employee is eligible for a discounted pension benefit if the employee is at least
age fifty (50) with ten (10) years of service.
Within a month after your hire date, the pension office will send you a packet of forms to
complete. The membership record, including a beneficiary designation form, must be completed
by all eligible employees.
Upon termination of employment, an employee can request a refund of contributions (excluding
the contributions toward the single sum death benefit). The funds may be distributed directly to
the employee or rolled over to an IRA or other qualified plan. If the employee elects direct
payment, the distribution is subject to 20% federal withholding and is considered taxable income
in the year in which it is received. Employees under age 59 1 /2 may be subject to an additional 10%
penalty. Employees who reach age 50 with 10 years of service, or who reach age 60 with 5 years
of service, are eligible for a minimal refund. They are only eligible for pension benefits at the time of
retirement.
A brochure explaining the details of the pension plan may be obtained from your Human
Resources Manager or you may contact the pension office at (312) 553-9265.
Deferred Compensation
Employees may contribute up to $ 17,000 or 100%, whichever is less, of their annual salary on a
pre-tax basis to supplement their retirement savings. The minimum contribution is $20 per pay
period. The deduction is taken from your gross earnings before federal and state taxes are applied,
thus reducing your taxable income. Your contributions are self-directed into the twenty-eight (28)
investment funds offered. Your contribution rate may be changed on a monthly basis by
completing a change form, and your investments may be changed daily by calling 1-800-701-8255
or logging onto www.gwrs.com for BenefitsCorp. You will receive quarterly statements
showing how your money has performed and the amount of your quality contribution.
The balance in the participant's account is fully vested and non-forfeitable at all times. You are
not eligible for a distribution of any portion of the fund balance unless you terminate employment
or retire. In the event of your death, payment will be made to your beneficiary.
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