Illinois Code § 40 ILCS 5/7-205.1

Reserves for Disability Benefits.
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A temporary and total and permanent disability benefit reserves shall be
created for payment of all temporary and total and permanent disability
benefits.

 
1. Amounts to fund the cost of total and permanent disability benefits
shall be established at the time such benefits are granted under actuarial
tables adopted by the Board upon recommendation of the Actuary of the Fund.
All total and permanent disability benefits payable shall be charged to
this reserved amount.

 
2. Temporary disability benefit payments shall be charged to the
disability reserve when made.

 
3. Amounts credited to the disability reserve shall be derived from
municipality contributions made pursuant to Section 7-172, paragraph (b),
subparagraph 3.

 
4. The total and permanent disability reserve shall be revalued annually
as of December 31. Any adjustment required therein by such revaluation
shall be charged or credited to the earnings and experience variation
reserve.

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