§ 2-43. Retirement dates and benefits.

(a)

Normal retirement date. A minimum of ten (10) years of credited service shall be required for retirement eligibility of all employees hired after November 12, 1985. Effective October 1, 1998, a member may retire on the first day of the month coincident with or next following that date upon which the member attains the age of fifty-five (55) with no less than ten (10) years of creditable service, or the completion of twenty (20) years of service, whichever occurs first.

(b)

When paid. The monthly retirement income payable in the event of normal retirement will be payable on the first day of each month. The first payment will be made on the firefighters normal retirement date, or on the first day of the month coincident with or next following his or her actual retirement, if later.

(c)

Normal retirement benefit:

(1)

Amount. For Tier One members the monthly retirement benefit shall be an amount equal to three (3) percent of average monthly earnings times the years and completed months of credited service for all credited service prior to October 1, 2003. For all years of credited service after October 1, 2003, the monthly retirement benefit for Tier One members shall be an amount equal to four (4) percent of average monthly earning times years and completed months of credited service. The normal retirement benefit for Tier Two members shall be calculated using a three (3) percent multiplier for each year of credited service for a maximum normal retirement benefit of seventy-five (75) percent of final monthly compensation. Tier Two members may increase their pension multiplier to three and one-half (3.5) percent provided that all costs associated with such an increase (or its actuarially equivalent cost) are borne solely by the Tier Two member as determined by the plan actuary. The cap of seventy-five (75) percent of final monthly compensation for Tier Two members is inapplicable for Tier Two members who purchased the enhanced multiplier; however, a Tier Two member's total benefit shall not under any circumstances exceed one hundred (100) percent of his/her average final compensation.

(2)

Purchase of enhanced pension multiplier. A purchase by a Tier Two member under subsection (c)(1) to increase the multiplier for service to three and one-half (3.5) percent may be completed by means of any of the following (or a combination thereof):

i.

A lump-sum, after-tax payment, subject to the limits of Section 415(n) of the Internal Revenue Code;

ii.

An eligible rollover distribution from a 401(a) qualified plan, a 403(a) annuity plan, a governmental 457(b) plan, a 403(b) tax-sheltered annuity plan, or a 408(a) or 408(b) individual retirement account or annuity, as permitted under the Internal Revenue Code;

iii.

A trustee-to-trustee transfer from a Code Section 457(b) governmental plan or a Code Section 403(b) plan permitted under the Internal Revenue Code as a transfer for "permissive service credit" as defined by Code Section 415(n);

iv.

A trustee-to-trustee transfer from a Code Section 401(a) plan; or

v.

After-tax payroll deductions.

(3)

Duration, survivor benefit. A member retiring hereunder on his normal retirement date shall receive a monthly benefit which shall commence on his normal retirement date and be paid on the first day of the month. The last payment will be the payment due next preceding the firefighter's death; except that, if the firefighter dies after his retirement but before he has received retirement benefits for a period of ten (10) years, the same monthly benefits will be paid to the beneficiary or beneficiaries as designated by the firefighter for the balance of such ten-year period, or, if no beneficiary is designated, to the estate.

(d)

Early retirement date. A member may retire on the first day of the month coincident with or next following the attainment of age fifty (50) and the completion of ten (10) years of credited service.

(e)

Early retirement benefit. A member retiring hereunder on his early retirement date may receive either a deferred or an immediate monthly retirement benefit as follows:

(1)

A deferred monthly retirement benefit which shall commence on his normal retirement date and be paid on the first day of the month. Unless otherwise elected by the member, the last monthly payment will be the payment due next preceding the firefighter's death; except that, if the firefighter dies after his retirement but before he has received retirement benefits for a period of ten (10) years, the same monthly benefit will be paid to the beneficiary or beneficiaries as designated by the firefighter for the balance of such ten-year period, or, if no beneficiary is designated, to the estate. The amount of the benefit shall be determined and paid in the same manner as for retirement at his normal retirement date except that average monthly earnings and credited service 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 be paid on the first day of the month. Unless otherwise elected by the member, the last monthly payment will be the payment due next preceding the firefighter's death; except that, if the firefighter dies after his retirement but before he has received retirement benefits for a period of ten (10) years, the same monthly benefit will be paid to the beneficiary or beneficiaries as designated by the firefighter for the balance of such ten-year period, or, if no beneficiary is designated, to the estate. The benefit payable shall be as determined in section 2-43, subparagraph (c)(1) above, reduced by three (3) percent for each year by which the starting date of the benefit precedes the normal retirement date.

(f)

Delayed retirement date. The delayed retirement date shall be that date following normal retirement date on which a member actually retires.

(g)

Delayed retirement benefit. A member retiring hereunder at his delayed retirement date shall receive a monthly retirement benefit which shall commence on the first day of the month coincident with or next following such delayed retirement date. The amount of each monthly retirement benefit shall be determined in the same manner as for normal retirement, except that average monthly earnings and credited service shall be determined as of the member's actual retirement date. The benefit shall be paid during such member's lifetime. Unless otherwise elected by the member, the last monthly payment will be the payment due next preceding the firefighter's death; except that, if the firefighter dies after his retirement but before he has received retirement benefits for a period of ten (10) years, the same monthly benefit will be paid to the beneficiary or beneficiaries as designated by the firefighter for the balance of such ten-year period, or, if no beneficiary is designated, to the estate.

(h)

Cost of living benefit. Effective October 1, 2006, each retiree who was a Tier One member, including all retirees who retired prior to October 1, 2006, shall have their monthly retirement benefits increased by a sum equal to one and one-half (1.5) percent per year (the "COLA"). Tier Two members who retire shall have their monthly retirement increased by a sum equal to the net return of the plan per year (i.e., the gross return of the plan less the plan's administrative costs) ("Tier Two COLA"), with a one and one-half (1.5) percent cap and a zero (0) percent floor per year. Provided however, that before any retiree is entitled to a COLA, the retiree must have been retired for three (3) years. Following the retiree's death who was a Tier One member, the COLA will be paid to each designated beneficiary. Following the death of a retiree who was a Tier Two member, the Tier Two COLA will be paid to each designated beneficiary only if a Tier Two COLA for retirees is to be given as a result of a net return being earned for the plan that year.

(i)

Variable benefits. For all firefighters employed on or after October 1, 1997, a variable benefit will be paid, effective October 1, 1999. Based upon procedures and methods adopted by the board of trustees, as determined to be actuarially sound by the city firefighters' retirement system (the "system") actuaries, benefits currently payable under this article shall be increased from time to time. The funds required for the financing of any benefits under this provision shall be derived solely from the investment return of system assets, both realized and unrealized, as allocable to firefighters and beneficiaries receiving benefits from the system, and only in such amount as exceeds the investment return assumed for purposes of the actuarial valuation of the system and a total experience gain under the system as compared to the actuarial assumptions. The benefit increase granted in any one (1) calendar year shall in no event exceed three (3) percent of the amount being paid immediately prior thereto. Any increases granted under this provision shall be expressed as a percentage of the retiree's current benefit, and such percentage shall be uniform in respect to all retirees in any given year, except that retirees whose payments start during a fiscal year shall receive a pro rata increase reflecting the number of payments received divided by twelve (12). The increase shall be calculated for each year ending September 30, and shall be payable effective the following October 1. This provision shall be effective October 1, 1999.

(j)

When the amount of benefit is determined; previous increases in retirement benefits. All benefits will be determined based on the provisions of this part as of the date the firefighter leaves the employ of the fire department, unless specifically indicated otherwise. All benefit increases granted by previous ordinances will remain in full force and effect.

(Ord. No. 00O-6-33, § 1, 6-26-00; Ord. No. 04O-07-152, § 1, 9-13-04; Ord. No. 04O-10-225, § 1, 11-8-04; Ord. No. 06O-10-173, § 1, 11-13-06; Ord. No. 06O-11-189, § 1, 12-11-06; Ord. No. 11O-05-123, § 3, 6-13-11; Ord. No. 13O-10-153, § 2, 10-28-13)