(A) Normal retirement date. A member's normal retirement date shall be the first day of the month following the attainment of age 50 and the completion of ten years of credited service or upon the completion of 23 years of credited service, regardless of age. A member may retire on his or her normal retirement date or on the first day of any month thereafter, and each member shall become 100% vested in his or her accrued benefit upon completion of ten years of credited service. Normal retirement under the system is retirement from employment with the city on or after the normal retirement date.
(B) Normal retirement benefit.
(1) A member (including a DROP participant) retiring on or after his or her normal retirement date shall receive a monthly benefit which shall commence on the first day of the month coincident with or next following his or her retirement and be continued during such member's lifetime, with 120 payments guaranteed in any event. If such member dies after retirement and has been married continuously for at least two years prior to his or her death, payment of one-half of the benefit payment at the time of his or her death shall continue to his or her surviving spouse to the earlier of such spouse's death or remarriage.
(2) The monthly retirement benefit for a Tier 1 member shall equal 3.3% of average final compensation for each year of credited service, up to a maximum benefit of 86%.
(3) The monthly retirement benefit for a Tier 2 member shall equal 3.2% of average final compensation for each year of credited service up to a maximum benefit of 80%.
(4) In any event, each member's benefit shall equal at least 2.75% of average final compensation for each year of credited service averaged over the entire period of credited service of the member.
(C) Cost of living adjustments for retirees.
(1) The pension benefit payable to all normal service retirees who were Tier 1 members and their surviving spouses (until such time as the spouse’s death or remarriage) shall be increased beginning at the later of:
(a) Three years after the retiree's benefits commence; or
(b) One year after completion of DROP participation and each year thereafter, by an amount equal to 2%.
(2) The pension benefit payable to all normal service retirees who are Tier 2 members and their surviving spouses (until such time as the spouse’s death or remarriage) shall be increased by an amount equal to 2.5% two years after retirement and every two years thereafter.
(Ord. O-2010-30, passed 7-2-10; Am. Ord. O-2011-26, 9-7-11; Am. Ord. O-2013-14, passed 7-3-13; Am. Ord. O-2015-09, passed 6-3-15; Am. Ord. O-2019-08, passed 3-20-19)