What is a pension?

The State of Illinois has established defined benefit pension plans for police officers and firefighters in Illinois. A defined-benefit retirement plan is a type of pension plan in which an employer/ sponsor promises a specified monthly benefit on retirement that is predetermined by a formula based on the employee's earnings history, tenure of service and age, rather than depending directly on individual investment returns. Illinois has more than 1,298 municipalities and more than 650 public safety pension funds. Public safety employees are entitled to retirement benefits, and those benefits are established by the State of Illinois, not the City of Peoria.

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1. What is a pension?
2. Who makes Public Safety Pension Fund Decisions?
3. What is the fiscal condition of the Peoria Police and Fire Pension Funds?
4. How are public safety pensions funded in Peoria?