(a) Pensions commencing prior to October 1, 2013.
(1) Standard pension benefit A. A vested group I member who retires on or after the group I member’s normal retirement date and who requests commencement of the group I member’s pension prior to October 1, 2013, or a group I member who terminates employment prior to October 1, 2013, and prior to the group I member’s normal retirement date and who waits until such vested retirement date, to apply for a pension, shall receive an annual life pension, the amount of which shall be 3% of the group I member’s applicable compensation base as defined by § 2.5-43(a)(1) or (a)(2), whichever is applicable, multiplied by the group I member’s total years of credited service, payable monthly on the first day of each month commencing with the month following the board’s approval of the group I member’s pension. This retirement pension shall be defined as the “group I member’s standard pension benefit A.”
(2) Alternative pension benefit. In lieu of the group I member standard pension benefit A, a group I member under this subsection (a) may irrevocably elect with his or her spouse’s consent (where applicable), in advance of his or her retirement and pursuant to regulations and requirements the board in its discretion may adopt, to receive an “alternative pension benefit” which shall be actuarially equivalent to the group I member’s standard pension benefit A and which shall be payable in two parts:
a. One part in a lump sum amount not less than 5% nor greater than 25% of the actuarial equivalent of the group I member’s pre-October 1, 2013 standard pension benefit A, which lump sum shall be payable on the date benefits commence under subsection (a)(2)b. below; and
b. The remainder in an annual life pension, payable monthly on the first day of each month commencing with the month following the board’s approval of the group I member’s alternative pension benefit.
(3) Limitation on alternative pension benefit. Notwithstanding any other provision in this division to the contrary, the option to elect an alternative pension benefit shall not be available for any disability pension under § 2.5-46, death benefit under § 2.5-47, or vested termination pension under § 2.5-44, nor shall it be available to any group I member who is receiving pension benefits as of the effective date of the alternative pension benefit provisions of this section, nor shall it be available upon re-retirement to any retired group I member who becomes re-employed by the city.
(b) Pensions commencing on or after October 1, 2013 (known as group I general member standard pension benefit "B," excluding § 2.5-45(b)(5)).
(1) Pensions commencing upon normal retirement date or vested terminated retirement date for group I general members hired and vested prior to July 1, 2011, whose pension commences on or after October 1, 2013 (not subject to the earnings cap). A vested group I general member hired and vested prior to October 23, 2007, who retires on or after the group I general member's normal retirement date and requests commencement of the group I general member's pension on or after October 1, 2013, or a group I general member who terminates employment on or after October 1, 2013, and prior to the group I general member's normal retirement date and who waits until such vested terminated retirement date to apply for a pension, shall receive an annual life pension, the amount of which shall be calculated by adding the following:
a. Three percent (3.0%) of the group I general member's compensation base as defined by § 2.5-43(a)(1) multiplied by the group I general member's years of credited service from date of hire until September 30, 2013; and
b. Two and one-half percent (2.5%) of the group I general member's compensation base as defined by § 2.5-43(b) multiplied by the group I general member's years of credited service from October 1, 2013 until date of termination.
(2) Pensions commencing upon normal retirement date or vested terminated retirement date for group I general members who were hired prior to July 1, 2011 and were not vested prior to October 23, 2007 and whose pension commences on or after October 1, 2013 (subject to the earnings cap). A group I general member hired prior to July 1, 2011, and not vested prior to October 23, 2007, who retires on or after the group I general member's normal retirement date and requests commencement of the group I general member's pension, and whose pension commences on or after October 1, 2013, or who terminates employment on or after October 1, 2013, but prior to his or her normal retirement date and who waits until such vested terminated retirement date to apply for a pension shall receive an annual life pension, the amount of which shall be calculated by adding the following:
a. Three percent (3.0%) of the group I general member's compensation base as defined by § 2.5-43(a)(2) multiplied by the group I general member's years of credited service from date of hire until September 30, 2013; and
b. Two and one-half percent (2.5%) of the group I general member's compensation base as defined by § 2.5-43(b) multiplied by the group I general member's years of credited service from October 1, 2013 until date of termination.
(3) Omitted per council direction.
(4) Omitted per council direction.
(5) Early retirement.
a. A group I general member can retire prior to their normal retirement date with a reduced pension if:
1. The group I general member is age 50; and
2. The group I general member has been a member of the fund for five years or more.
b. Early retirement pension calculation.
1. An early retirement pension shall be an annual life pension, the amount of which shall be the specified percentage of the group I general member's compensation base multiplied by the group I general member's total years of credited service. For purposes of the preceding sentence, the specified percentage of the group I general member's compensation base shall be 2.75% for all credited service earned or purchased prior to October 1, 2013, and 2.25% for credited service earned or purchased on or after October 1, 2013. Early retirement pension shall be calculated using the specified percentage and compensation base in effect at the time the group I general member earned or purchased the credited service for all credited service earned or purchased after October 1, 2013.
2. In addition to the reduced multiplier described in subsection (5)(b)(1) above, a member taking early retirement shall have his benefit reduced by an amount equal to the product of 0.416666667% multiplied times the number of months by which the commencement of the early retirement pension antedates the group I general member's normal or vested terminated retirement date. This reduction shall be applied to all parts of the benefit.
(6) Payable. The pension shall be payable monthly on the first day of each month commencing with the month following the board's approval of the group I general member's pension per § 2.5-45(b)(1) and (2) or (b)(5). The pension shall be payable monthly.
(c) Alternative pension benefit. In lieu of the group I general member standard pension benefit B, a group I general member may irrevocably elect with his or her spouse's consent (where applicable), in advance of his or her retirement and pursuant to regulations and requirements the board in its discretion may adopt, to receive an "alternative pension benefit," and which shall be payable in two parts:
(1) Normal retirement alternative pension benefit.
a. One part in a lump sum amount not less than 5% nor greater than 25% of the actuarial equivalent of the group I general member's standard pension benefit "B," which lump sum shall be payable on the date benefits commence under subsection (c)(1)b. below; and
b. The remainder in an annual life pension, payable monthly on the first day of each month commencing with the month following the board's approval of the group I general member's pension.
(2) Omitted per council direction.
(3) Limitation on alternative pension benefit. The only people eligible for the alternative pension benefit are members who take normal retirement and do not enroll in DROP. Notwithstanding any other provision in this division to the contrary, the option to elect an alternative pension benefit shall not be available for any disability benefit under § 2.5-46, death benefit under § 2.5-47, or normal vested termination pension under § 2.5-44, nor shall it be available to any retired employee who is receiving pension benefits hereunder as of the effective date of the alternative pension benefit provisions of this division, nor shall it be available upon re-retirement to any retired group I member who becomes re-employed by the city.
(Ord. 20471-10-2012, § 2, passed 10-23-2012; Ord. 23516-12-2018, § 1, passed 12-11-2018)
Editor’s note:
On December 11, 2018, the Fort Worth City Council adopted Ordinance No. 23516-12-2018, which added subsection 2.5-45(c)(3), ‘Limitation on alternative pension benefit.’ To improve clarity, the pre-existing subsection 2.5-45(d), ‘Limitation on alternative pension benefit,’ was collapsed into the newly added subsection with all limitations together in a single subsection. Other than the elimination of the redundant title, no change was made to the text of either subsection.