What if I am being mandatorily retired and have between 10 and 20 years of service?
In this situation, you will receive an annuity calculated by multiplying 30% time your average salary for the 4 highest consecutive years of the last 10 years of service, plus 2% for each completed year of service or fraction thereof in excess of 10, with a cap of 48% of your average salary.
Is there a significant financial difference in my annuity if I retire with 19 years, 11 months versus retiring with 20 years?
Yes. Currently, an officer who retires after accruing 20 full years of service credit will receive a Formula Annuity of approximately $2,000 per month more than an officer who retires with only 19 years and 11 months and receives a Money Purchase Annuity. In addition, the officer receiving a Money Purchase Annuity will NOT be […]
How is the Money Purchase Annuity calculated?
A Money Purchase Annuity is calculated by taking the sum of your accumulated pension contributions (7% out of your pensionable salary) plus 10% of the city’s contribution toward your pension for each year or partial year of service beyond 10 years. The sum of the contributions is divided by a factor at your date of […]
If I have 19 years and 1 day of service, does that round up to 20 years of service, thereby making me eligible for the Formula Annuity?
No. If you are a Tier 1 member, you must complete 20 years of service, after all lost time is taken into consideration, before becoming eligible for a Formula Annuity.
How is the Formula Annuity calculated?
A member’s tier determines their “Formula Annuity” calculation.
How is the Formula Annuity calculated?
A member’s tier determines their “Formula Annuity” calculation.
If I have less than 10 years of service, am I still eligible to receive a monthly annuity?
No. If you have less than 10 years of service credit with the Fund, you are not eligible for an annuity at retirement. You will need to apply to the Fund to receive your contributions in a lump sum payment.
If I have less than 20 years of service, am I still eligible to receive a monthly annuity?
Yes. However, the annuity calculation is different for each tier. If you have less than 20 years of service credit with the Fund but more than 10 years of service at retirement:
How many years of service do I need in order to retire?
The minimum years of service credit you must accrue with the Fund in order to be eligible to receive what is referred to as a “Formula Annuity” depends on your Tier. However, the Fund advises you work at least one full pay period past your anniversary date to ensure you have accounted for any lost […]