Upon retirement from service, as provided herein, a member shall receive a retirement allowance, called a regular retirement allowance, which shall consist of the benefits hereinafter provided.
(a) Annuity. Such member shall receive an annuity which shall be the actuarial equivalent of his or her accumulated contributions standing to his or her credit in the Annuity Savings Fund at the time of his or her retirement in accordance with the following:
(1) Letter of Agreement No. 1. Effective July 1, 1978. Any member who is active as of the date of this amendment, or becomes a member after the date of this amendment, shall, upon retirement, receive a pension which, when added to his or her annuity shall provide a retirement allowance which shall equal but not exceed the product of the number of years and fraction of a year of his or her credited service multiplied by the sum of 1.75 percent of his or her final average compensation.
(2) Letter of Agreement No. 2. Effective July 1, 1980. Any member who is active as of the date of this amendment, or becomes a member after the date of this amendment, shall, upon retirement, receive a pension which, when added to his or her annuity, shall provide a retirement allowance which shall equal but not exceed the product of the number of years and fraction of a year of his or her credited service multiplied by the sum of two percent of his or her final average compensation.
(b) Pensions.
(1) Active members.
A. A member who is active as of July 1, 1980, or who becomes a member after such date shall, upon retirement, receive a pension which, when added to his or her annuity, shall provide a retirement allowance which shall equal but not exceed the product of the number of years and fraction of a year of his or her credited service multiplied by the sum of two percent of his or her final compensation.
B. Effective July 1, 1983, a member who is active on July 1, 1983, or who becomes a member after July 1, 1983, shall, upon retirement, receive a pension which, when added to his or her annuity, shall provide a retirement allowance which shall equal but not exceed the product of the number of years and fraction of a year of his or her credited service multiplied by the following annuity factors:
1. July 1, 1983 2.05 percent
2. July 1, 1984 2.10 percent
3. July 1, 1985 2.15 percent
C. Effective September 30, 1987, an active member shall, upon retirement, receive a pension, which pension, when added to his or her annuity, shall provide a retirement allowance which shall equal but not exceed the product of the number of years and fraction of a year of his or her credited service multiplied by the annuity factor of 2.5 percent.
D. Effective October 1, 1987, a new member shall, upon retirement, receive a pension which, when added to his or her annuity, shall provide a retirement allowance which shall equal but not exceed the product of the number of years and fraction of a year of his or her credited service multiplied by the annuity factor of two percent.
(2) Inactive members.
A. A member who is inactive and who has left the employ of the City prior to July 1, 1975, shall be entitled to a retirement allowance at age sixty-five, which shall equal but not exceed the product of the number of years and fraction of a year of his or her credited service multiplied by the sum of one percent of the first four thousand two hundred dollars ($4,200) of his or her final average compensation and one and one-half percent of the portion of his or her final average compensation in excess of four thousand two hundred dollars ($4,200).
B. A member who became inactive between July 1, 1975, and June 30, 1980, shall be entitled to a retirement allowance as provided in Section 294.13, which shall be computed at the rate of two percent of his or her final average compensation.
C. A member who became inactive from and after July 1, 1980, shall be entitled to a retirement allowance as provided in Section 294.13, which shall be computed in accordance with paragraph (b)(1) hereof.
(c) Adjustments.
(1) The allowance of a member retiring pursuant to Section 294.11(a) shall be reduced by one-half of one percent for each month by which the benefit commencement precedes the date the member would have been first eligible for normal retirement if City employment had not been terminated.
(2) For a retirement occurring after August 31, 1987, the allowance of a member retiring pursuant to Section 294.11(a) shall be reduced by 0.25 percent for each month by which the benefit commencement precedes the date the member would have been first eligible for normal retirement if City employment had not been terminated.
(d) Death of Member. If a retiree and spouse die before receiving retirement allowance payments in an aggregate amount equal to the accumulated contributions standing to the retiree's credit in the Annuity Savings Fund at the time of his or her retirement, the difference between his or her accumulated contributions and the aggregate amount of retirement allowance payments received shall be paid to such person or persons as he or she shall have nominated by written designation, duly executed and filed with the Retirement Commission. If there is no such designated person or persons surviving such retiree, such difference, if any, shall be paid to his or her estate.
(Res. 88-388. Passed 5-23-88.)