(A) Eligibility for retirement under this section shall be defined as “Normal Retirement Status.” A member may elect to retire as follows:
(1) On the first day of any month if coincident with, following with, or following the attainment of his or her fiftieth birthday and completion of 20 years of continuous service;
(2) Effective on or after March 12, 1999, on the first day of any month coincident with or following the attainment of his or her fifty-fifth birthday and completion of 10 years of continuous service;
(3) For an employee who is eligible to and becomes a member as of February 19, 1981, on the attainment of his or her fifty-fifth birthday, regardless of the number of years of continuous service;
(4) For a police officer member, after completion of 20 years of continuous service regardless of age;
(5) Effective on or after October 1, 2000, for a police officer member, on the attainment of his or her fiftieth birthday and completion of 10 years continuous service;
(6) Effective on or after December 15, 1999, for a firefighter member, after completion of 20 years of continuous service regardless of age;
(7) Effective on or after December 15, 1999, for firefighter members, on the first day of any month coincident with or following the attainment of his or her fiftieth birthday and completion of 10 years of continuous service.
(8) Effective March 17, 2004, a police officer member who has completed 16 years of service, but no more than 20 years of service, may purchase an increase to the benefit multiplier to achieve a final retirement benefit not to exceed 80% of his or her average monthly earnings. Payment for such increase in the multiplier may be made, at the member’s option, by a lump sum payment, direct in-service transfer from a member’s deferred compensation account pursuant to Section 457(e)(17) of the Internal Revenue Code, or periodic payments bearing interest at the Plan’s actuarially assumed rate of return made according to an installment payment schedule approved by the Board of Trustees, or a combination of the foregoing. Credit shall be awarded only for that service purchased and only upon receipt of payment. Credit for purchased service shall only be awarded upon the member’s vesting. If the member separates from service with the city prior to vesting, all monies paid towards the purchase of such service shall be refunded to the member.
(B) A member retiring hereunder on his normal retirement date shall receive a monthly benefit which shall commence on his normal retirement date and be continued thereafter during his lifetime. Effective only for terminations on or after March 12, 1999, in the event that the member dies after retirement but before receiving retirement benefits for a period of 120 months, 100% of the member’s benefit will be paid to his beneficiary for the balance of the 120-month period. Upon his death, or, if applicable, expiration of the 120-month guarantee period, the full retirement benefit shall be continued to his spouse for one year and 50% of the amount continued thereafter until spouse’s death.
(C) As of November 4, 1992, the amount of the benefit shall be 3% of average monthly earnings for the highest two years of continuous service multiplied by years of continuous service, subject in any event to a maximum of 80% of average monthly earnings for the highest two years of continuous service. However, members as of February 19, 1981 shall receive at their normal retirement date (age 55, regardless of years of continuous service) the greater of the benefit provided by the formula above or 50% of average monthly earnings for the highest two years of continuous service. In any event, effective as of March 12, 1999, the benefit cannot be less than 2% of average monthly earnings for each year of continuous service.
(D) (1) As of October 1, 2000, the amount of the benefit multiplier for all police officer members shall increase to 4% for every year after the member's twentieth anniversary of participation in the pension system up to a maximum benefit as provided in § 34.43(C) of the Code of Ordinances. For police officer members hired prior to May 1, 2010, the benefit multiplier for all continuous service earned after April 30, 2010 shall be 3.5% and the maximum benefit shall be 80% of the police officer's average monthly earnings for the member's highest two years of continuous service.
(2) For police officer members hired after April 30, 2010, the benefit multiplier for all continuous service shall be 3% and the maximum benefit shall be 80% of the police officer's average monthly earnings for the member's highest two years of continuous service.
(E) Retired police officers, and those disabled police officers receiving a benefit pursuant to § 34.46 prior to October 1, 2006, or their beneficiaries, may be eligible to receive a supplemental pension distribution, the amount of which shall be determined as of September 30 each year. For police officer members who retired prior to October 1, 2003, the amount of the distribution shall be equal to the actuarial present value of future pension payments to such police office retirees, multiplied by the positive difference, if any, between the investment rate of return and 8%, up to a maximum of 2%, divided equally among all police officer retirees determined by their years of service. For police officer retirees who retire on or after October 1, 2003 but before October 1, 2006, or their beneficiaries, the amount of the distribution shall be equal to the actuarial present value of future pension payments to such police officer retirees multiplied by the positive difference, if any, between the investment rate of return and 9%, up to a maximum of 2%, divided equally among all such police officer retirees determined by their years of service. No supplemental benefit shall be available for members who retire, enter the DROP or are disabled on or after October 1, 2006 or their beneficiaries. The determination of whether there may be a supplemental pension distribution shall be based upon the following factors:
(1) The actuary for the Pension Fund shall determine the rate of investment return earned on the pension fund assets during the 12 month period ending each September 30 and shall be the rate reported in the most recent actuarial report.
(2) The actuary for the Pension Fund shall, as of September 30, determine the actuarial present value of future pension payments to current police officers.
(3) The supplemental pension distribution amount shall not exceed accumulated net actuarial experience from all pension liabilities and assets.
(4) If there shall be a supplemental distribution, the Board of Trustees shall authorize a supplemental pension distribution, unless the administrative expenses of distribution exceed the amount available for distribution.
(5) The eligible persons to receive a supplemental distribution are retired police officers, including retired police officers participating in the DROP, and their beneficiaries.
(6) The supplemental pension distribution shall be allocated among eligible persons, based upon years of service in the proportion that the eligible person’s years of service bear to the aggregate amount of years of service of all eligible persons.
(7) Each eligible person retired for less than a year is entitled to a pro rata share of their supplemental pension distribution based on the number of months retired. Such pensioner’s beneficiary is entitled to a pro rata share of the deceased retiree’s supplemental pension distribution for that year based on the number of months that the deceased retiree received a pension during the year ending the September 30 prior to the retiree’s death.
(8) For members who participate in the DROP as provided in § 34.43, the supplemental pension distribution, if distributed, shall be deposited in the member’s DROP account during their term of participation in the DROP.
(F) Retired police officer members entitled to receive a supplemental check pursuant to § 34.43(E) and who are not receiving a cost of living adjustment to their retirement benefit as of October 1, 2006 shall have a one time opportunity to make an irrevocable election to retain the right to continue to receive the supplemental check pursuant to § 34.43(E) or an annual 2% cost of living increase to their retirement benefit in lieu of such supplemental check. The election must be made by December 31, 2006. If the retired member elects the cost of living adjustment such election shall apply retroactively to October 1, 2004.
(G) Police officer members who retired before October 1, 2006 or who are DROP participants as of October 1, 2006, who are entitled to receive a supplemental check pursuant to § 34.43(E) and an annual 1.5% cost of living adjustment to their retirement benefit shall have a one time opportunity to make an irrevocable election to either retain the right to receive the supplemental check pursuant to § 34.43(E) and the annual 1.5% cost of living adjustment to their retirement benefit or elect the option of receiving an annual 2.5% cost of living adjustment in lieu of the supplemental check and the annual 1.5% cost of living adjustment. This election must be made by December 31, 2006. If the retired member elects the increased annual cost of living adjustment in lieu of the right to receive the supplemental check as provided in § 34.43(E), the cost of living adjustment shall apply retroactively to October 1, 2004.
(H) Effective April 1, 2005 and April 1 of each year thereafter, firefighter retirees, their beneficiaries and DROP participants who were receiving benefits or enrolled in the DROP on June 18, 2003 will receive either a 2% increase to their retirement benefit or an adjustment equal to the total percentage increase in base wages, excluding performance or merit adjustments, provided in the collective bargaining agreement to bargaining unit members, for the city fiscal year commencing the preceding October 1, whichever is greater. This increase shall be applied to all monthly benefit payments for all participants (including retirees and DROP participants) and beneficiaries who were receiving benefits for at least one year prior to June 18, 2003. For those receiving benefits for less than one year prior to June 18, 2003, the increase shall be prorated. Members retiring or entering the DROP after June 18, 2003 will not receive annual adjustments to their benefits unless they elect the optional benefit set forth in § 34.52(D).
(I) Effective October 1, 2009, and October first of each year thereafter, police retirees who retired or entered the DROP on or after October 1, 2003, or their beneficiaries, will receive a 1.5% increase to their retirement benefit. Effective October 1, 2009, and October first of each year thereafter, police retirees who retired or entered the DROP on or after October 1, 2006, or their beneficiaries, will receive a 3.0% increase to their retirement benefit. This increase shall be applied to all monthly benefit payments for all participants (including retirees and DROP participants) and beneficiaries who were receiving benefits for at least one year from March 17, 2004. For those receiving benefits for less than one year from March 17, 2004, the annual increase shall be prorated.
(J) All firefighter members hired on or after April 1, 2006 will have the retirement benefit calculated to equal 4%, rather than the 3% set forth in division (C) of this section for continuous service prior to May 1, 2010, of average monthly earnings for the highest two years of continuous service multiplied by years of continuous service, subject in any event to a maximum of 80% of average monthly earnings for the highest two years of continuous service, but in no event shall the benefit exceed 98% of average monthly regular wages.
(K) For all firefighter members, effective May 1, 2010:
(1) If a firefighter member was hired on or prior to June 18, 2003, the benefit multiplier shall be 4% for each year of continuous service accrued prior to May 1, 2010 and the benefit multiplier shall be 3.5% for each year of continuous service accrued on or after May 1, 2010. The firefighter shall be eligible to retire or enter the DROP, as set forth in § 34.52. upon reaching a benefit of 80% of average earnings; attainment of age 50 with a minimum of ten years of continuous service; or upon completion of 20 years of service regardless of age. If the firefighter's service with the city terminates prior to the earlier of: (1) reaching age 50 with at least ten years of continuous service, or (2) completion of 20 years of continuous service regardless of age, the firefighter's benefit multiplier for each year of creditable service shall be reduced to 3%, and the ten year vesting requirement shall continue to apply. By way of example only, a firefighter member hired at age 35 after June 18, 2003, would have been eligible to retire at age 50 with 15 years of credited service with a 4% multiplier resulting in a benefit equal to 60% of earnings. The same employee would remain eligible for active participation until such 60% benefit is achieved with the reduced multiplier of 3.5% for credited service earned after April 30, 2010.
(2) If a firefighter member is hired after June 18, 2003, and prior to May 1, 2010, the benefit multiplier shall be 4% for each year of continuous service accrued prior to May 1, 2010, and the benefit multiplier shall be 3.5% for each year of continuous service accrued on or after May 1, 2010. The firefighter shall remain eligible to be an active employee of the city until such time as the firefighter's benefit equals the maximum benefit the firefighter would have been entitled to under the provisions of the Plan in effect prior to April 30, 2010. (By way of example only, a firefighter member hired at age 35 after June 18, 2003 would have been eligible to retire at age 50 with 15 years of credited service with a 4% multiplier resulting in a benefit equal to 60% of earnings. The same employee would remain eligible for active participation until such 60% benefit is achieved with the reduced multiplier of 3.5% for credited service earned after April 30, 2010.) The firefighter is eligible to retire or enter the DROP upon reaching the maximum benefit calculated in accordance with the preceding sentence or attainment of age 50 with a minimum of ten years of continuous service. If the firefighter's service with the city is terminated prior to reaching the earlier of: (1) age 50 with at least ten years of continuous service; or (2) completion of 20 years of service regardless of age, the firefighter's benefit multiplier for each year of creditable service shall be reduced to 3% and the ten-year vesting requirement shall continue to apply.
(3) If a firefighter member is hired after April 30, 2010, the amount of the benefit multiplier shall be 3% of average monthly earnings for the highest two years of continuous service and the maximum benefit shall be 80% of the firefighter's average monthly earnings for the highest two years of continuous service.
(L) Police officers actively employed by the City on April 30, 2010, who retire or enter the DROP on or after May 1, 2010, or their beneficiaries, shall receive a 2% cost-of-living adjustment to their retirement benefit on October 1, 2010 and on each October 1 thereafter. Police officers hired on or after May 1, 2010 who retire or enter the DROP, or their beneficiaries, shall receive a 1.5% cost-of-living adjustment to their retirement benefit on October 1 of each year. For those receiving benefits for less than one year, the increase shall be prorated.
(M) Firefighters actively employed by the City on April 30, 2010, who retire or enter the DROP on or after May 1, 2010, or their beneficiaries, shall receive a 2% cost-of-living adjustment to their retirement benefit on April 1, 2011 and on each April 1 thereafter. Firefighters hired on or after May 1, 2010 who retire or enter the DROP, or their beneficiaries, shall receive a 1.5% cost-of-living adjustment to their retirement benefit on April 1 of each year. For those receiving benefits for less than one year, the increase shall be prorated.
(N) For police and firefighter members hired on or after October 1, 2018 the retirement benefits shall be as follows:
(1) The benefit multiplier will be 3.0% for each complete year of service.
(2) The maximum retirement benefit shall not to exceed 80% of average monthly earnings.
(3) The member’s Average Compensation Calculation will be determined by using the best five out of last ten years of service.
(4) When calculating the employees retirement benefits, up to 300 hours per year in overtime compensation may be included but payments for accrued unused sick or annual leave or other unused leave may not be included.
(5) The maximum DROP participation period is not to exceed eight years from the first date of eligibility for normal retirement.
(6) The member’s DROP account interest rate will be the same rate as other Plan members as is in effect for Plan members at the time the member enters DROP based on their date of hire.
(7) The member will not have an individual pension contract with the city.
(8) The member’s retirement payment will not be adjusted for cost of living adjustments (COLAs).
(9) The member’s normal form of pension payment is limited as follows: ten years certain and life (other options will be available at time of retirement for “spouse” as defined by city ordinance (irrevocable selection), such as 50%, 66%, 75% and 100% survivorship options), such options shall be actuarially calculated based on sound actuarial practices including, but not limited to gender and age.
(10) The member’s pension contribution will be 3% of pensionable earnings.
(‘69 Code, § 5-156) (Ord. 557, passed 2-19-81; Am. Ord. 967, passed 9-19-91; Am. Ord. 1014, passed 11-4-92; Am. Ord. 1067, passed 3-16-94; Am. Ord. 1249, passed 1-7-98; Am. Ord. 1321, passed 12-15-99; Am. Ord. 1353, passed 9-20-00; Am. Ord. 1360, passed 12-20-00; Am. Ord. 1443, passed 6-18-03; Am. Ord. 1480, passed 3-17-04; Am. Ord. 1572, passed 2-21-07; Am. Ord. 1581, passed 5-16-07; Am. Ord. 1669, passed 8-4-10; Am. Ord. 1915, passed 9-17-18)