§ 54-82. Retirement benefit amounts and eligibility.

(a)

Normal retirement date. A member's normal retirement date shall be the first day of the month coincident with or next following the earlier of the attainment of age 55 and the completion of ten years of credited service or upon the completion of 25 years of credited service and attainment of age 52. A member may retire on his normal retirement date or on the first day of any month thereafter, and each member shall become 100 percent vested in his accrued benefit on the member's normal retirement date. Normal retirement under the system is retirement from employment with the city on or after the normal retirement date. Notwithstanding any other provision of this subsection (a), a member who is employed and not participating in the DROP on September 25, 2012, may retire upon attainment of age 50 and the completion of ten years of credited service or upon the completion of 20 years of credited service regardless of age, and upon such retirement shall be eligible to receive the benefit accrued as of September 25, 2012; and such member shall be eligible to receive the benefit based on credited service after the effective date of this section upon attainment of age 55 and the completion of ten years of credited service or upon the completion of 25 years of credited service and attainment of age 52. Notwithstanding any other provision of this subsection (a), a member with ten or more years of credited service on January 1, 2013, may retire upon attainment of age 48 and completion of 25 years of credited service, and upon such retirement shall be eligible for the normal retirement benefit provided in subsection (b) below.

(b)

Normal retirement benefit. A member retiring under this section on or after his normal retirement date shall receive a monthly benefit which shall commence on the first day of the month coincident with or next following his retirement and be continued thereafter during the member's lifetime, ceasing upon death, but with 120 monthly payments guaranteed in any event. The monthly retirement benefit shall equal three percent of average final compensation for each year of credited service. For a member with credited service as both a full-time firefighter and as a volunteer firefighter, the monthly retirement benefit shall be calculated separately for full-time service and volunteer service, based on the applicable accrual rate provided in this subsection and added together to determine the total benefit.

(c)

Early retirement date. A member may retire on his early retirement date, which shall be the first day of any month coincident with or next following the attainment of age 50 and the completion of ten years of credited service. Early retirement under the system is retirement from employment with the city on or after the early retirement date and prior to the normal retirement date.

(d)

Early retirement benefit. A member retiring under this section on his early retirement date may receive either a deferred or an immediate monthly retirement benefit payable in the same form as for normal retirement as follows:

(1)

A deferred monthly retirement benefit which shall commence on what would have been his normal retirement date had he continued employment as a firefighter and shall be continued on the first day of each month thereafter. The amount of each such deferred monthly retirement benefit shall be determined in the same manner as for retirement on his normal retirement date, except that credited service and average final compensation shall be determined as of his early retirement date; or

(2)

An immediate monthly retirement benefit which shall commence on his early retirement date and shall be continued on the first day of each month thereafter. The benefit payable shall be as determined in subsection (1) of this subsection, which is actuarially reduced from the amount to which he would have been entitled had he retired on the date which would have been his normal retirement date had he continued employment as a firefighter and with the same number of years of credited service as of the time his benefits commence and based on his average final compensation at that date.

(e)

Supplemental retirement benefit. An additional monthly supplemental benefit shall be paid to all eligible normal and early service retirees and their beneficiaries or joint annuitants as provided in this subsection (e). The amount of the monthly supplemental benefit for members retiring on or after October 1, 2003, but prior to September 25, 2012, with at least 20 years of credited service shall be $20.00 for each full year of credited service, plus a prorated amount for each additional completed month, for a total amount not to exceed $600.00. For those members retiring on or after September 25, 2012, only those with at least 25 years of credited service shall be eligible for a supplemental retirement benefit. The supplemental retirement benefit for those eligible members retiring on or after September 25, 2012, shall be $20.00 for each full year of credited service, plus a prorated amount for each additional completed month, for a total amount not to exceed $500.00. Retirees under the predecessor fire fighter pension fund shall not be eligible to receive the supplemental retirement benefits under this subsection (e). Notwithstanding any other provision of this subsection (e), members who are employed and not participating in the DROP on January 1, 2013, who first attain eligibility for normal retirement at age 55 with ten or more years of credited service shall be eligible for a supplemental benefit as follows:

(1)

Upon retirement following completion of more than 20 but less than 22 full years of credited service—$10.00/month per year of credited service.

(2)

Upon retirement following completion of 22 or more but less than 25 full years of credited service—$15.00/month per year of credited service.

(3)

Upon retirement following completion of 25 or more full years of credited service—$20.00/month per year of credited service, up to a maximum of $500.00/month.

(f)

Cost-of-living adjustment.

(1)

For those members who retire prior to January 1, 2013:

a.

Beginning on the first January 1 following one full year of retirement, and on each subsequent January 1 thereafter, the monthly benefit of each retiree with less than 20 years of credited service, including disability retirees and terminated vested persons, or any beneficiaries or joint annuitants of such retirees who are receiving a retirement benefit, shall be increased by one percent; except that retirees with more than 19 years of credited service who retired prior to October 1, 2003, shall be annually granted a cost-of-living (COLA) increase equal to three percent of their then current annuity amount commencing upon the 61st month following commencement of DROP participation or receipt of pension benefits. Retirees participating in the DROP shall be eligible for the one percent increase beginning on the first January 1 following one full year of receipt of benefits after terminating participation in the DROP. Effective October 1, 2003, but prior to the effective date of all current and future retirees who have attained 20 years of creditable service shall be annually granted a cost-of-living (COLA) increase equal to three percent of their then current annuity amount commencing upon the 61st month following commencement of DROP participation or receipt of pension benefits.

b.

For those members retiring on or after January 1, 2013, the COLA for that portion of the member's benefit based on credited service after January 1, 2013, will be subject to all of the following provisions:

1.

Only those members retiring after attaining age 52 with 25 or more years of credited service shall be eligible for a COLA; except members who are employed and not participating in the DROP on January 1, 2013, and first attain eligibility for normal retirement at age 55 with ten or more years of credited service shall be eligible for a COLA upon completion of 20 years of credited service; and members who are employed and not participating in the DROP on January 1, 2013, and first attain eligibility for normal retirement at age 48 with 25 or more years of credited service shall be eligible for a COLA upon completion of 25 years of credited service.

2.

The first COLA shall be applied, if at all, on the first day of January following the member's attainment of age 59 and one-half and eight full years of retirement, and annually thereafter;

3.

Cost-of-living adjustments will be limited to the lesser of:

i.

The most recent cost-of-living adjustment calculated by the Social Security Administration for payments to Social Security recipients; or

ii.

Three percent of the current benefit; except that, if Social Security recipients receive no increase in benefits in any given year, then no COLA will be applied in that same year; and

4.

The COLA will be applied only in those years in which the plan meets or exceeds the actuarial assumptions reflected in the plan's most recent actuarial valuation report, such that there is no actuarial loss for the most recent plan year. In addition, the funded ratio reflected in the "Disclosure Information Per Statement No. 25 of the Governmental Standards Board - Schedule of Funding Progress" in the most recent actuarial valuation report must be 80 percent or more.

(2)

The cost-of-living increase provided in this subsection (f) shall not apply to the supplemental retirement benefit provided in subsection (e) above.

(3)

Notwithstanding any other provision of this subsection (f), members who are employed and not participating in the DROP on January 1, 2013, shall be eligible for the COLA in effect prior to September 25, 2012, as applied to that portion of their benefit based on credited service prior to January 1, 2013.

(g)

Required distribution date. The member's benefit under this section must begin to be distributed to the member no later than April 1 of the calendar year following the later of the calendar year in which the member attains age 70½ or the calendar year in which the member terminates employment with the city.

(Ord. No. 2007-29, § 1, 9-18-07; Ord. No. 2010-26, § 1, 9-28-10; Ord. No. 2012-19, § 2, 9-25-2012; Ord. No. 2012-36, § 3, 12-20-2012; Ord. No. 2014-3, § 3, 3-18-2014)

Editor's note

Ord. No. 2012-36, § 8, adopted Dec. 20, 2012, provides that the benefit changes contained in § 54-82 herein shall not apply to members who attained age 50 with ten or more years of credited service, or 20 years of credited service regardless of age, prior to the effective date of this ordinance.