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(a) Normal retirement date for group I general members. A group I general member shall be eligible for pension benefits on or after the group I general member's normal retirement date, which shall be the last day of the month on which the earliest of the following occurs:
(1) The group I general member's years of age and all years of credited service total 80; or
(2) The date on which the group I general member reaches age 65, but in no event shall such normal retirement date be prior to the fifth anniversary of the date the group I general member joined the fund.
(b) Omitted per council direction.
(c) Vested terminated retirement date for group I general members. A vested terminated group I general member shall be eligible for pension benefits on or after the group I general member's vested terminated retirement date, which shall be the last day of the month on which the earliest of the following occurs:
(1) The group I general member's years of age plus years of credited service total 80 as if the vested terminated member had remained employed by the city; or
(2) The date on which the group I general member reaches age 65.
(d) Omitted per council direction.
(Ord. 20471-10-2012, § 2, passed 10-23-2012; Ord. 23516-12-2018, § 1, passed 12-11-2018)
(a) Compensation base for determining group I member benefits for credited service earned or purchased prior to October 1, 2013.
(1) For group I members hired and vested prior to October 23, 2007 (not subject to the 12% cap), pension, death benefits, disability pension and vested termination benefits shall be based upon the group I member’s compensation base which shall mean the average annual earnings, as defined by § 2.5-41(a) which were paid to the group I member by the city for employment with the city during any three calendar years in which he or she had the highest annual earnings. If a group I member’s last day of employment with the city is prior to January 1, 1999, “five” shall be substituted for “three” in the preceding sentence.
(2) For group I members who were hired prior to July 1, 2011, but not vested by October 23, 2007 (subject to the 12% cap), pension, death benefits, disability pension and vested termination benefits shall be based upon the group I member’s compensation base which shall mean the average annual earnings, as defined by § 2.5-41(a) which were paid to the group I member by the city for employment with the city during any three calendar years in which he or she had the highest annual earnings, subject to the following limitations.
a. The fund shall determine the four calendar years in which the group I member had the highest annual earnings. Of such four years, the year in which the group I member had the lowest annual earnings shall serve as the base year. The base year shall not be included as one of the three calendar years for purposes of the compensation base calculation.
b. The first annual earnings to be used in the calculation of the group I member’s compensation base shall be the actual annual earnings from the calendar year with the third highest annual earnings of the four calendar years identified in subsection (a)(2)a. above, provided that if such annual earnings are from a calendar year beginning on or after January 1, 2008, the amount to be used in the calculation of the compensation base for the first year shall not exceed 112% of the annual earnings for the base year.
c. The second annual earnings to be used in the calculation of the group I member’s compensation base shall be the actual annual earnings from the calendar year with the second highest annual earnings of the four calendar years identified in subsection (a)(2)a. above, provided that if such annual earnings are from a calendar year beginning on or after January 1, 2008, the amount to be used in the calculation of the compensation base for the second year shall not exceed 112% of the annual earnings that are attributable to the year described in subsection (a)(2)b. above.
d. The third annual earnings to be used in the calculation of the group I member’s compensation base shall be the actual annual earnings from the calendar year with the highest annual earnings of the four calendar years identified in subsection (a)(2)a. above, provided that if such annual earnings are from a calendar year beginning on or after January 1, 2008, the amount to be used in the calculation of the compensation base for the third year shall not exceed 112% of the annual earnings that are attributable to the year described in subsection (a)(2)c. above.
e. The average of the three amounts determined in accordance with subsections (a)(2)a. through (a)(2)d. above will be the average annual earnings for purposes of the group I member’s compensation base.
(b) Compensation base for determining group I member benefits for credited service earned or purchased on or after October 1, 2013. For group I members, credited service earned or purchased on or after October 1, 2013 shall be based upon average annual earnings, as defined by § 2.5-41(b) which were paid to the group I member by the city for employment with the city during any five calendar years in which the group I member had the highest annual earnings. The compensation base for credited service earned or purchased on or after October 1, 2013, does not include overtime.
(c) If a group I member has less than five (or if applicable, three) calendar years of employment. If a group I member has less than five (or if applicable, three) calendar years of employment, the group I member’s compensation base shall be determined by the executive director under uniform, non-discriminatory procedures that are consistently applied.
(d) Lump sum payments. For compensation base purposes, any lump sum payments of earnings for any prior time period, whether awarded to the group I member by a court, administrative body or settlement agreement, shall be retroactively attributed to the calendar year in which it would otherwise have been received by the group I member from the city for services rendered.
(e) Compensation base. For purposes of computing the compensation base for a group I member who has made an effective DROP election, the group I member’s compensation base shall be calculated using the group I member’s earnings prior to the effective date of the DROP election.
(Ord. 20471-10-2012, § 2, passed 10-23-2012)
(a) Contribution refund prior to vesting. Any group I general member who is voluntarily or involuntarily separated from the service of the city before the group I general member is vested shall be entitled to receive the amount of the group I general member's contributions plus regular interest less any amount previously paid to the group I general member from the fund.
(b) Contribution refund after vesting in lieu of vested terminated pension. Any vested group I general member who is voluntarily or involuntarily separated from the service of the city may elect to receive a refund of the group I general member's contributions, plus regular interest, less any amount previously paid to the group I general member from the fund, either at the date of such separation or at any time thereafter prior to commencement of retirement benefit, but by so doing, the group I general member shall forfeit all rights under the fund and thereafter be entitled to no further benefits hereunder.
(c) Vested terminated pension.
(1) A vested terminated group I general member shall be entitled to receive a vested terminated pension payable:
a. In full, pursuant to § 2.5-45(b)(1) and (2); or
b. In a reduced amount commencing on or after age 50 pursuant to § 2.5-45(b)(5).
(2) A vested terminated group I general member must file a request for the commencement of the vested terminated pension by completing such forms and following such procedures as are established by the board. A vested terminated pension shall be payable monthly on the first day of each month commencing with the month following approval of the group I general member's vested terminated pension by the board.
(Ord. 20471-10-2012, § 2, passed 10-23-2012; Ord. 22977-10-2017, § 1, passed 10-24-2017; Ord. 23516-12-2018, § 1, passed 12-11-2018)
(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.
(a) General provisions. See § 2.5-7 for general provisions related to disability pension.
(b) Disability in line of duty. If a group I member, whether or not vested, becomes disabled as defined in § 2.5-7, while in line of duty, the group I member shall receive an annual life pension, the amount of which shall be the specified percentage of the group I member’s compensation base multiplied by the group I member’s total years of credited service which would have accrued if the group I member had worked to the group I member’s normal retirement date, but not less than $250 per month. For purposes of the preceding sentence, the specified percentage of the group I member’s compensation base shall be 2.75%, unless the group I member is already eligible to retire on or after the group I member’s normal retirement date, in which case the specified percentage shall be 3%.
(c) Disability not in line of duty for vested group I members whose disability pension commences prior to October 1, 2013. If a vested group I member becomes disabled as defined in § 2.5-7, while not in line of duty, and the group I member’s pension commences prior to October 1, 2013, the group I member shall receive an annual life pension, the amount of which shall be the specified percentage of the group I member’s compensation base, multiplied by the group I member’s total years of credited service to date of actual retirement. For purposes of the proceeding sentence, the specified percentage of the group I member’s compensation base shall be 2.75%, unless the group I member is already eligible to retire on or after the group I member’s normal retirement date, in which case the specified percentage shall be 3%.
(d) Disability not in line of duty for vested group I members whose disability pension commences on or after October 1, 2013. If a vested group I member becomes disabled as defined in § 2.5-7, while not in line of duty, and the group I member’s pension commences on or after October 1, 2013, the group I member shall receive an annual life pension, the amount of which shall be determined by adding the following:
(1) A specified percentage of the group I member’s compensation base as defined by § 2.5-43(a)(1) if hired and vested prior to October 23, 2007, or a specified percentage of the group I member’s compensation base as defined by § 2.5-43(a)(2) if hired prior to July 1, 2011 and not vested by October 23, 2007, multiplied by the group I member’s years of credited service from date of hire until September 30, 2013. For purposes of the preceding sentence, the specified percentage of the group I member’s compensation base for credited service pursuant to this subsection (d) shall be 2.75%; and
(2) A specified percentage of the group I member’s compensation base as defined by § 2.5-43(b) multiplied by the group I member’s years of credited service from January 1, 2013, until the date of disability. For purposes of the preceding sentence, the specified percentage of the group I member’s compensation base for credited service pursuant to this subsection shall be 2.25%.
(e) Disability not in line of duty for non-vested group I members. If a group I member becomes disabled while not in line of duty before the group I member is vested, then such group I member shall be entitled to receive a contribution refund in accordance with § 2.5-44(a).
(Ord. 20471-10-2012, § 2, passed 10-23-2012)
(a) While in line of duty.
(1) If a group I member dies before retirement while in line of duty and as a result of the performance of that group I member’s duties, the surviving widow or widower shall be entitled to receive a monthly pension, the amount of which shall be 75% of the group I member’s standard pension, based on the number of years of credited service that would have accrued had the group I member lived to the group I member’s normal retirement date, but not less than $250.
(2) Each dependent child under 18 years of age of such group I member shall be entitled to receive a monthly pension, the amount of which shall be $100, provided however, that if no surviving widow or widower shall be entitled to receive a monthly pension pursuant to the terms of this division, all such dependent children shall share equally a monthly pension, the amount of which shall be 75% of the group I member’s pension, based on the number of years of credited service that would have accrued had the group I member lived to the group I member’s normal retirement date, but not less than $250.
(3) If a group I member dies while in line of duty and leaves no widow or widower or children eligible to receive a benefit hereunder, but is survived by a dependent parent or parents, such dependent parent(s) shall be entitled to receive a monthly pension, the amount of which shall be 75% of the group I member’s accrued pension projected to the group I member’s normal retirement date, but not less than $250.
(4) The survivor’s monthly pension benefit for a group I member who dies in line of duty shall be calculated using a multiplier of 3%.
(b) While not in line of duty.
(1) Vested group I member who dies not in line of duty and whose survivor’s monthly pension begins prior to October 1, 2013.
a. If a vested group I member dies before retirement, while not in line of duty, and the survivor monthly pension benefits begins prior to October 1, 2013, then the surviving widow or widower shall be entitled to receive a monthly pension, the amount of which shall be 75% of the group I member’s accrued pension but not less than $150.
b. Each dependent child under 18 years of age of such vested group I member shall be entitled to receive a monthly pension, the amount of which shall be $100; provided, however, that if no surviving widow or widower shall be entitled to receive a monthly pension pursuant to the terms of this subsection (b), all such dependent children shall share equally a monthly pension, the amount of which shall be 75% of the group I member’s accrued pension, but not less than $150.
c. If a vested group I member dies while not in line of duty and leaves no widow or widower or children eligible to receive a benefit under this subsection (b), but is survived by a dependent parent or parents, such dependent parents of the surviving dependent parent shall be entitled to receive a monthly pension, the amount of which shall be 75% of the group I member’s accrued pension, projected to the group I member’s normal retirement date, but not less than $150.
d. For purposes of this subsection (b)(1), a group I member’s accrued pension shall be calculated using a multiplier of 2.75%, unless the group I member had reached the group I member’s normal retirement date prior to death, in which event the multiplier shall be 3%.
(2) Vested group I member who dies not in line of duty and whose survivor’s monthly pension begins on or after October 1, 2013.
a. If a vested group I member dies before retirement, while not in line of duty, and the survivor pension begins on or after October 1, 2013, then the surviving widow or widower shall be entitled to receive a monthly pension, the amount of which shall be 75% of the group I member’s accrued pension but not less than $150. The accrued pension shall be calculated by adding the following:
1. A specified percentage of the group I member’s compensation base as defined by § 2.5-43(a)(1) if hired and vested prior to October 23, 2007, or a specified percentage of the group I member’s compensation base as defined by § 2.5-43(a)(2) if hired prior to July 1, 2011 and not vested by October 23, 2007, multiplied by the group I member’s years of credited service from date of hire until September 30, 2013. For purposes of the preceding sentence, the specified percentage of the group I member’s compensation base for credited service for this time period shall be 2.75%; and
2. A specified percentage of the group I member’s compensation base as defined by § 2.5-43(b), multiplied by the group I member’s years of credited service from October 1, 2013, until the date of death. For purposes of the preceding sentence, the specified percentage of the group I member’s compensation base for credited service for this time period shall be 2.25%.
b. Each dependent child under 18 years of age of such vested group I member shall be entitled to receive a monthly pension, the amount of which shall be $100; provided, however, that if no surviving widow or widower shall be entitled to receive a monthly pension pursuant to the terms of this section, all such dependent children shall share equally a monthly pension, the amount of which shall be 75% of the group I member’s accrued pension, but not less than $150.
c. If a group I member dies while not in line of duty and leaves no widow or widower or children eligible to receive a benefit hereunder, but is survived by a dependent parent or parents, such dependent parent(s) shall be entitled to receive a monthly pension, the amount of which shall be 75% of the group I member’s accrued pension, but not less than $150.
(3) Group I member not vested at time of death. If a group I member was not vested on the date of death, the surviving widow or widower shall be entitled to the return of all contributions which the group I member paid into the fund during the group I member’s life plus regular interest thereon. If there is not a surviving widow or widower, the contributions shall be paid to the estate of the group I member.
(c) After retirement.
(1) Upon the death of a group I member, the surviving widow or widower shall be entitled to receive a monthly pension, the amount of which shall be 75% of the pension being paid to the group I member, provided that the group I member and surviving widow or widower had been married for at least one year immediately prior to the group I member’s retirement. Notwithstanding the preceding sentence, a surviving widow or widower who was not married to the deceased group I member for at least one year immediately prior to the group I member’s retirement shall be eligible to receive a monthly pension if the group I member has elected to receive a reduced monthly pension, on a form and subject to procedures developed by the executive director, within six months after the group I member’s completion of two years of marriage to the group I member’s spouse. The reduced monthly pension shall be actuarially determined in a manner that is actuarially neutral to the fund, based on actuarial tables in effect on the date of the group I member’s election to receive a reduced monthly pension. If such an election has been made, the surviving widow or widower shall receive a monthly pension for life equal to 75% of the group I member’s reduced monthly pension.
(2) Upon the death of a group I member who was not married at retirement, a beneficiary designated by a group I member at retirement may be eligible to receive a monthly pension if the group I member has elected to receive a reduced monthly pension, on a form and subject to procedures developed by the executive director. The group I member’s reduced monthly pension shall be actuarially determined in a manner that is actuarially neutral to the fund, based on actuarial tables in effect on the date of the group I member’s election to receive a reduced monthly pension. If such an election has been made, the group I member’s designated beneficiary shall receive a monthly pension for life equal to 100%, 75%, 50% or 25% of the group I member’s reduced monthly pension. If a group I member who was not married at retirement and who selected a designated beneficiary pursuant to this subsection (e) later marries only the designated beneficiary would be entitled to receive a lifetime monthly pension.
(3) Each dependent child under 18 years of age of such deceased group I member shall be entitled to receive a monthly pension, the amount of which shall be $100 but shall cease upon the earliest of such child’s death, marriage or attainment of age 18; provided, however, that if no surviving widow, widower or designated beneficiary shall be entitled to a monthly pension pursuant to the terms of this division, all such dependent children shall share equally a monthly pension, the amount of which shall be 75% of the pension being paid to the group I member at the time of his or her death.
(d) Death of vested terminated group I member prior to pension commencing. If a terminated group I member entitled to a pension under the provisions of § 2.5-44 dies before the group I member’s pension commences, the group I member’s designated beneficiary, or if none, the group I member’s estate shall receive an amount equal to the group I member’s total contributions to the fund, plus regular interest. If the vested group I member’s years of age and years of credited service total at least 65 as of the date of the group I member’s termination, the group I member’s eligible dependents shall receive the benefit specified under subsection (b) above, based on the pension to which the group I member would have been entitled as of the date of the group I member’s death, in lieu of the payment of contributions plus regular interest. If the group I member’s years of age and credited service did not total at least 65 as of the date of the group I member’s termination, the group I member’s eligible dependents may choose between the refund of contributions, the payment of the survivor benefit at the date the group I member would have been eligible to draw the benefit, or an immediate benefit at an actuarially reduced rate.
(Ord. 20471-10-2012, § 2, passed 10-23-2012; Ord. 22977-10-2017, § 1, passed 10-24-2017)
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