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Plan Provisions

Effective Date
July 1, 1972
Eligibility
All full-time police officers. Participation is mandatory.
Creditable Service
Full-time service with the City during which time prescribed employee contributions are made. Under certain conditions, military service is includable.
Salary
Gross pay, excluding payouts of accrued benefits upon termination of employment.
Average Final Compensation (AFC)
Average Salary for the three best contributing years.
Normal Retirement
  • Eligibility - Age 53 and 10 years of service or 20 years of service regardless of age.
  • Benefit -
    • (a) 3% of AFC for each of the first 10 years of service plus 4% of AFC for the next 10 years of service plus 2% of AFC for each year of service thereafter; subject to a maximum of 80% of AFC.
    • (b) Any Police Officer who was actively employed on October 1, 2003, and retires or enters the DROP on or after January 1, 2006 will receive the greater of (a) above and:
      • 4% of AFC for each of first 10 years of service plus 2% of AFC for each year thereafter. 2% will be added to the total percentage for Officers who were vested as of January 1, 2006.  An additional 2% will be added to the total percentage for Officers who are actively employed until age 53 with 10 or more years of credited service.
    • (c) The monthly medical retirement supplemental benefit before age 65 is $25 for each year of service (maximum of $500 per month) and after age 65 is $15 for each year of service (maximum of $300 per month).
  • Form of Benefit - Ten years certain and life annuity, with other options available.
Early Retirement
  • Eligibility - Age 47 and 10 years of service.
  • Benefit - Accrued benefit reduced by 3% for each year by which early retirement date precedes normal retirement date. Supplemental benefit described above is also payable.
Vesting
Upon completion of 10 years of Creditable Service, Members are fully vested in their accrued benefits. Should such a Member terminate employment and leave his own contributions in the Fund, he would be entitled to his accrued benefit beginning at his Normal Retirement Age. Members who terminate before completion of 10 years receive a refund of their own contributions without interest.
Service Incurred Disability
  • Eligibility - A total and permanent disability which impairs a member from his regular and continuous duty within his job classification.
  • Benefit - 75% of Salary in effect on date of disability less certain amounts paid by Workers’ Compensation and, in certain cases, earnings after the first $10,000 from other sources such as salaries and self-employment income.
Non-Service Incurred Disability
  • Eligibility - A total and permanent disability which impairs a member from rendering efficient service to the City.
  • Benefit - The accrued retirement benefit with a minimum of 25% of AFC.
Pre-Retirement Death Benefits (Service Connected)
In the event of a member’s service-connected death, the spouse shall receive a benefit equal to the greater of 75% of average final compensation or the accrued benefit.
Pre-Retirement Death Benefits (Non-Service Connected)
In the event of the death of a nonvested member, his accumulated contributions shall be paid to his beneficiary. Upon the death of a vested member, the beneficiary shall receive a benefit in accordance with the member's written election of an optional form of payment; such benefit begins on the earliest date the member could have retired.
Deferred Retirement Option Plan (DROP)
Members who continue in employment past normal retirement date may either accrue larger pensions or freeze their accrued benefit and enter the DROP.  Each participant in the DROP has an account credited with benefits not received and investment earnings. The maximum DROP participation was extended from 5 years to 6 years.
Contributions
  • Members - The employee contribution rate is 9.84%.
  • State - Premium Tax Refunds for the benefit of police officers.
  • City - Each year the City will contribute at least the difference between the total cost of the system and the sum of State contributions and member contributions.

Changes Since Last Valuation

The following changes in benefits have been made since the last valuation:

  • A Service Connected Death Benefit to the spouse equal to the greater of 75% of final average compensation or the accrued pension has been added.
  • The normal form of benefit has been changed from a life annuity to a ten years certain and life annuity.
  • The cap of 50% of average final compensation has been removed from the non-service incurred disability benefit.
  • The current employee contribution rate of 7.15% will increase by 1.0% per year starting October 1, 2004 until it equals 10.15% of pay.
  • The current employer contribution threshold rate of 10.0% will increase to 11.5% beginning October 1, 2004, to 13.0% beginning October 1, 2005, and to 18% beginning October 1, 2006.
  • The 13th and 14th checks provision has been eliminated for those who retire after December 14, 2004.
  • The first $10,000 of income is exempt from the disability offsets.
  • Active members with at least ten years of service may purchase up to four years of prior military service or prior service as a police officer with another governmental entity by paying into the fund the full actuarial cost of such service.

Changes Since Last Valuation II (valuation dated: October 1, 2004)

The following changes in benefits have been made since the last valuation dated: October 1, 2004:

  • Police Officers will be able to remain in the DROP for 60 months as long as they enter within 60 months after their normal retirement date.
  • Police Officers who terminate and begin receiving early or normal retirement benefits on or after January 1, 2006, will receive a supplemental monthly benefit equal to $16.25 per year of service with a maximum supplement of $325 per month until age 65 and $10 per year with a maximum of $200 per month thereafter.
  • Police Officers who retire or enter the DROP after January 1, 2006 will receive an annual 2% COLA starting 5 years after retirement.
  • The normal retirement benefit has changed as described above.

Changes Since Last Valuation III (valuation dated: 2007)

The following changes in benefits have been made since the last valuation dated: 2007:

  • The employee contribution rate decreased to 9.84% and the cost sharing feature is eliminated.
  • The monthly medical retirement supplemental benefit before age 65 is $25 for each year of service (maximum of $500 per month) and after age 65 is $15 for each year of service (maximum of $300 per month).
  • The Cost of Living Adjustment (“COLA”) increased from 2.0% to 2.5% commencing 5 years after retirement for Police Officers who are actively employed (excluding employees in the DROP) as of the amendment date.
  • The maximum DROP participation was extended from 5 years to 6 years.

If you would like a full copy of the Summary Plan Description please contact the Pension Office.