Age and Service Allowance
This is the normal retirement benefit and is payable monthly for the lifetime of a member. The age and service allowance retirement benefits are based on a formula which multiplies final
average salary, by the of early retirement,
applicable benefit factor, by the by an age reduction factor.
of creditable service and, in the case employer elects the benefit factor
percentage applicable to its members from nine average of a member’s monthly pay during the service producing the highest monthly average,
available programs. Final average salary is the period of sixty consecutive months of credited which is contained within the 120 consecutive
months of credited service immediately subdivision may, by majority vote of the benefits calculated using a thirty-six month
preceding retirement. governing body, elect to
A participating have their future
final average salary period.
A member may retire with an age and service allowance after completing at least five years of credited service, and attaining age sixty for a general employee and age fifty-five for law enforcement or fire personnel. Employers may, by majority vote of the governing body, select an alternative unreduced retirement for employees whose age and service total eighty or more years, with at least five years of credited service.
A member may retire with an early retirement allowance after completing five years of credited service, and attaining age fifty-five for a general employee or age fifty for a law enforcement or fire member. The early allowance amount is computed in the same manner as an age and service allowance, but reduced to reflect the fact that the age when payments begin is younger than the minimum service retirement age. The amount of the reduction is ½ percent of 1 percent (.005) for each month the retirant is younger than the minimum service retirement age.
A member may elect to receive the benefits payable under one of four options. The Life Option provides a full monthly benefit to the retirant until his death. Two other options provide a reduced benefit to the retirant and a survivor benefit in varying degrees after the retirant’s death. The fourth option provides a reduced monthly benefit for the lifetime of the retirant, but additionally guarantees at least 120 monthly payments will be made either to the retirant or his beneficiary.
Cost-of Living Adjustments
All retired members are eligible for an annual post-retirement cost-of-living adjustment beginning the October 1st at least twelve months after the effective date of their allowance. The