General Employee’s Defined Benefit (DB) Pension Plan

Participants Retirement Options

Minimum Service Requirement for Normal Retirement:

• Age 65 or older with 5 years of credited service.

• Any age with 25 years of credited service.

• You will be paid a monthly pension based on 2.5% for each year of credited service times

• your Final Average with a maximum retirement benefit.

• Final Average Earnings is the average of your pensionable income during the period of 36 consecutive months of credited services, which produces the highest average during your last 10 years of employment.
   

Eligibility for Early Retirement:

• Age 55 or older with 10 years of credited service.

• Early retirement is computed the same way as a normal retirement pension: based on your Final Average and credited service. However, the amount is reduced 1/6th of 1% for each month (2%) for each year that the date of your early retirement precedes the month of your 65th birthday. Maximum reduction is 20% of your earned benefit.
   

Separation of Employment prior to Retirement Eligibility:

• If you are discharged or voluntarily separate from the City prior to completing 5 or more years of credited service, you will be refunded the total amount of your contributions together with credited interest.

• If you are discharged or voluntarily separate from the City after you have completed 5 or more years of credited service you have the following options:
  
  - Elect to remain vested in the plan to receive a reduced monthly pension benefit beginning at age 55 or thereafter, or receive the Normal pension benefit at age 65.
  
  - Choose a Direct Rollover of your accumulated contributions (including interest). Your - payment will not be taxed in the current year and no income tax will be withheld as long as your payment is made directly to your IRA or another qualified plan.
  
  - Current Contributions paid to you, if you have the payment made to you, it is subject to 20% income tax withholding when you receive it. You may eliminate the effect of these taxes if, you roll it over to an IRA or another plan that accepts rollovers within 60 days.
   

Notes:

• If you elect a refund of accumulated contributions after termination of employment you will forfeit your right to any pension from this DB plan.

• This is a basic summary of the Defined Benefit Retirement options. Refer to the Defined Benefit Plan Document for Cost of Living (COLA) provisions or any other questions you may have regarding retirement.