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Participant Contributions and Service Credit
The pension benefits are partially funded by contributions made by active officers. The contribution rate is 9.91% of salary (excluding overtime). The Village has adopted a so-called "employer pick-up" of contributions which allow the contributions to be made on a tax-deferred basis. (Note that contributions made prior to January 1, 1983 were made on a non-tax deferred basis, which will result in a very small tax reduction at the time of retirement for officers employed prior to that date, in accordance with IRS regulations). Taxation of pensions by state governments is governed by state law. Illinois does not currently tax pension payments.

An officer who does not receive a pension from the Pension Fund is entitled to a refund of contributions made. Such a refund is eligible for a tax-deferred "rollover" to an Individual Retirement Account or other qualified pension plan which accepts such contributions.

Creditable Service
Generally, creditable service is time served as an officer in the Village of Westmont. Furloughs and suspensions in excess of 30 days are not counted, but leaves of absence due to illness or injury are counted. If a disabled officer returns to active service, up to 3 years of the period during which a disability pension was received are counted towards creditable service, with some restrictions. Creditable service also includes service in the military forces of the United States entered into while an officer is on active police duty. Such military service is limited to 5 years. Creditable service may also include time served as an officer in a police-related association. Under any circumstances, earning of creditable service requires that the officer pay to the Fund the contributions that would have been paid had he or she been in actual police service.

The pension laws contain provisions under which retirees may re-enter police service and earn additional creditable service in the Westmont Police Pension Fund. Refer to the statutes for additional information or contact a member of the Board of Trustees.

Portability of Service from Another Fund
Transfer from One Illinois Police Pension Fund to Another Fund
The pension laws also allows credited service for service in another Illinois police pension fund (excluding Chicago) under 40 ILCS5/3-110-d If an officer has at least two years of service in another department prior to transferring to the Westmont Police Department, the officer may arrange for that service to be transferred for credit in the Westmont Police Pension Fund. The pension fund from which the officer is transferring will make a payment to the Westmont Police Pension Fund in the amount of the officer's contributions made to the fund that he or she is leaving, 6% annual interest on those contributions, and a second amount that is also equal to the officer's contributions and interest (which is assumed to be the municipality's share). However, if the Westmont Police Pension Fund finds that the amount transferred is less than the true cost of the credited service being transferred, the officer must pay an additional amount from personal funds so that the true cost of the transferred service is received by the Westmont Police Pension Fund.

An officer wishing to transfer credit may defer his or her decision until such time as a determination is made as to whether or not the officer will have to pay money to the Pension Fund from personal funds. Note that a calculation of the amount due must be performed by a qualified actuary retained by the Fund. Because of the cost involved, the Westmont Police Pension Fund will only pay for such a calculation to be made if so requested by an active Westmont police officer. This calculation will not be performed on behalf of applicants to become Westmont police officers who are not yet Westmont police officers.

The Westmont Police Pension Fund will cooperate fully with any city, village or police pension fund from another Illinois jurisdiction should a former Westmont officer desire to transfer credit to another pension fund covered under the Illinois statutes related to portability.

Transfer to and From the Illinois Municipal Retirement Fund
Occassionally, Illinois law allowed transfer of service to and from a police fund and the Illinois Municipal Retirement Fund (IMRF).  Officers who transfer service from the IMRF to the Westmont Police Pension Fund are given credit in the police fund commensurate with the amount of service earned in the IMRF and the amount of money transferred to the Westmont Police Pension Fund.

Other Transfers
Illinois law also includes other provisions for transfer of service from a police pension fund to another Illinois public employee fund. Please refer to the statute for additional information.