This is a one-time lump sum benefit, payable to those who as of 1/1/2000 were eligible retired/inactive members, eligible surviving spouses or eligible active members. A future PSO spouse survivor or duty death surviving spouse of an eligible active member will also be eligible. It is calculated by multiplying the following three amounts:
5% times Base times Factor
This is an actuarial factor based on "Attained Age." (See the table in Chapter 36, Section 36-05-11-a.)
The following spouses are never eligible for a 5% Lump Sum Bonus, a Retiree Special Bonus, or an 8.6% Lump Sum Bonus:
This one-time lump sum benefit is payable to those who, as of 1/1/2000, were either eligible retired members or eligible surviving spouses. In addition, payment to the eligible individual must have commenced prior to 1/1/2000. This benefit is calculated in two steps:
The full December 1999 monthly allowance, unless payment to the eligible individual began after December 1, 1999. In that case, use the full January 2000 monthly allowance.
This factor is from the Charter Ordinance that implemented the Global Pension Settlement, as shown below:
| Year of Retirement or Pre-Retirement Death* | 1997 - 1999 | 1996 | 1995 | 1994 | 1993 | 1992 and prior |
|---|---|---|---|---|---|---|
| General City Factor | 2 | 3 | 4 | 5 | 6.5 | 8 |
| Fire and Police Factor | 8 | 8 | 8 | 8 | 8 | 8 |
*For General City members who retired prior to 1/1/2000 on a duty disability allowance, then converted to a service retirement allowance that became effective on or before January 1, 2000, the factor is instead based on Year of Duty Disability Retirement).
Some members and survivors may have received Catch-up and COLA payments during the period of January 1, 1996 - April 30, 1997 that were too high. In some cases, a portion of this overpayment will be deducted, or "offset," from the Retiree Special Bonus amounts paid to members or spouse survivors. (The remaining portion of the overpayment will be "forgiven.") Here is how the overpayment offset is calculated:
For Retired Members in payment as of 1/1/2000:
The lesser of:
For Spouse Survivors in payment as of 1/1/2000:
The lesser of:
This benefit provides that starting January 1, 2000, the initial Proportionate Share Spouse Survivor Allowance is based on the amount of the deceased member's allowance, including any increases the deceased member had been eligible to receive on the date he or she died.
In addition, new Spouse Survivors of members who die on or after January 1, 2000 will receive future benefit increases at the same time, and in the same percentages, as the increases the deceased members would have received had they continued to live.
This benefit provides automatic annual increases to the monthly allowance.
In general, eligible* individuals include all current and future retirees and surviving spouses - except firemen and policemen (and the spouses of firemen and policemen), who are eligible for the CPI COLA.
Anyone who retired prior to 1993 and who was eligible for the 2% COLA under the pre-GPS plan will not see a change in the way his or her annual increases are calculated. That is, such individuals will continue to receive 2% annual increases in 2000 and subsequent years. In addition, the Catch-up COLA benefit for certain individuals with pre-October 1987 retirement dates, as well as the $50 Escalator benefit for certain firemen and policemen, will continue to be paid.
Individuals who were not eligible for the 2% COLA under the pre-GPS plan will receive increases commencing on the later of the year 2000 anniversary of retirement, or the second anniversary of retirement. Increases in subsequent years will occur on the anniversary of the first increase.
An increase payable on the 2nd, 3rd or 4th anniversary of retirement will provide a permanent 1.5% increase in the monthly allowance. An increase payable on or after the 5th anniversary of retirement will provide a permanent 2% increase in the monthly allowance.
For most individuals, anniversary of retirement is used the way one would expect - as the anniversary of the member's, PSO spouse survivor's or duty death surviving spouse's date of retirement. For the following individuals, however, COLAs actually take effect as follows:
*The following individuals are not eligible for any COLAs:
This benefit provides automatic annual increases to the monthly allowance.
In general, eligible* individuals include all current and future fire and police retirees and surviving spouses of firemen and policemen where the member either retired, separated from service, or died in active service on or after January 1, 1993. For members who convert to service retirement or elect an extended life duty disability retirement allowance that is effective on or after January 1, 1993, the original date of duty disability retirement is used to determine whether the retired member is eligible for the CPI COLA or the 1.5%/2% COLA.
Anyone who was eligible for the CPI COLA under the pre-GPS plan will not see a change in the way his or her annual increases are calculated, except for changes made under the GPS 2% guarantee (see Benefit 6).
Individuals who were not eligible for the CPI COLA under the pre-GPS plan will receive increases commencing on the later of the year 2000 anniversary of retirement, or the first anniversary of retirement. Increases in subsequent years will occur on the anniversary of the first increase.
Each increase will be the lesser of 3% or the change in the CPI (Consumer Price Index) as of December of the year that precedes the increase (except for those eligible for the 2% guarantee, where increases will not be less than 2% per annum).
For most individuals, anniversary of retirement is used the way one would expect - as the anniversary of the member's, PSO spouse survivor's or duty death surviving spouse's date of retirement. For the following individuals, however, COLAs actually take effect as follows:
*The following individuals are not eligible for any COLAs:
This benefit guarantees that annual CPI (Consumer Price Index) COLA increases of at least 2% will be made to the service retirement allowances of eligible Police and Fire members who are:
This benefit guarantees that everyone eligible for COLAs will receive these increases in the future. (Previously, 2% COLAs for eligible beneficiaries covered by the Retired Life Account were provided only to the extent that the COLA Adjustment Reserve held sufficient assets.)
This benefit provides certain ERS members with additional imputed service credit for qualifying periods of active military service that occurred prior to first joining ERS. This additional service will be used in the calculation of the service retirement allowance, the PSO survivor allowance, the conversion service retirement allowance and the extended-life duty disability retirement allowance (but will not be used to determine eligibility for any ERS benefit).
Military Service Credit is not provided automatically. Members - or eligible PSO survivors - must apply for this benefit (and provide specified military documentation) and be eligible under certain union contract provisions.
Military Service Credit is distinct from the Military Service Credit Cash Bonus benefit. Each military benefit covers different ERS groups. No retiree can receive both of these GPS military benefits.
This was a one-time lump sum benefit that recognizes pre-ERS active military service for certain members in payment of a service retirement allowance.
$1 million was divided among all eligible retired members.
This benefit has been fully distributed
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This benefit allows certain members to reselect their retirement option during the 90-day period preceding their retirement date. Although eligible members can reselect their retirement options, they cannot change their designated beneficiaries.
This benefit applies only to active General City members who selected their spouses as their designated beneficiaries under a Protective Survivorship Option (PSO) prior to January 19, 2001.
Members who already have retired cannot reselect their option.
Policemen are now eligible to begin receiving a service retirement allowance after completing 25 years of creditable service (regardless of age). Benefits will be retroactive to the effective date of retirement.
Prior to GPS, policemen could take service retirement only after reaching the minimum age of 57, or after completing 25 years of service and attaining age 52.
The minimum age-57 requirement for those with less than 25 years of service has not changed under GPS.
Firemen are now eligible to begin receiving a service retirement allowance after completing 22 years of creditable service and attaining age 49. Benefits will be retroactive to the effective date of retirement.
Prior to GPS, firemen could take service retirement only after reaching the minimum age of 57, or after completing 25 years of service and attaining age 52.
The minimum age-57 requirement for those with less than 25 years of service has not changed under GPS.
This benefit provides additional imputed service credit to certain ERS members who were active firemen or policemen as of January 1, 2000. This additional imputed service credit is used in the calculation of the service retirement allowance. It is also used to calculate the PSO survivor allowance, the conversion service retirement allowance and the extended life duty disability retirement allowance.
This additional service credit is not used to determine eligibility for any ERS benefit.
*Not counting additional imputed service under GPS benefits.
If a member of the group described below separates from service without a vested pension benefit or withdraws his or her accumulated 5.5% member contributions, that member will receive a refund of the new 1.6% contributions. This refund will not include interest on the 1.6% contributions.
General City employees who enroll in the ERS after December 31, 1999 and participate in the combined fund must contribute 1.6% of their pensionable earnings during their first eight years of enrollment. These contributions are used to pay for the increased COLA benefits provided to new employees.
Survivors eligible for F&P Survivorship Fund benefits on account of a pre-1/1/2000 member death will receive increased monthly allowances. These increases are effective with the monthly installment that next follows January 1, 2000.
Under this benefit, the new allowance amount is:
*Eligible recipients of this benefit include the following beneficiaries in payment (or eligible for deferred Fund benefits) as of 1/1/2000:
Children over the age of 18 suffering from a disability that began before they reached age 18, and dependent parents of members (only if the member is not survived by an eligible surviving spouse or child) will continue to receive their pre-GPS monthly benefits.
This benefit provides an additional two years of imputed service credit to members who, as of January 1, 2000, were either policemen in active service or policemen on duty disability retirement who were Active Members in Good Standing of the F&P Survivorship Fund as of January 1, 2000. This additional service credit is used in the calculation of the service retirement allowance or the conversion service retirement allowance. It is not used to determine eligibility for any ERS benefit.
In order to receive this additional imputed service credit, a policeman in active service as of January 1, 2000, must either:
In order to receive this additional imputed service credit, a policeman on duty disability as of January 1, 2000, must convert to service retirement.*
*An otherwise eligible policeman who elects an extended life duty disability retirement allowance receives an 8.6% Lump Sum Bonus (Benefit 17) instead of this imputed service credit.
This is a one-time lump sum benefit, payable to certain F&P Survivorship Fund members (and certain surviving spouses of Fund members). Note that a member who is eligible for Benefit 16 (two years of imputed service credit) is not eligible for the 8.6% bonus payment. The timing of this payment depends on the retirement type. It is calculated by multiplying the following three amounts:
8.6% times Base times Factor
This is an actuarial factor based on "Attained Age." (See the table in Chapter 36, Section 36-05-11-a.)
This is a one-time lump sum bonus payable to surviving former members of the F&P Survivorship Fund who were participants in the combined fund as of January 1, 2000.
Implementing this bonus involved not only identifying the individuals who belong to this group, but also verifying the amount of creditable service that each eligible person has as a fireman or policeman.
This bonus was calculated as follows:
An amount equal to $500 times the number of surviving former members of the F&P Survivorship Fund will be divided among those surviving former members who participate in the Combined Fund.
The amount of each member's bonus was determined by the amount of his or her creditable fire and police service in relation to the total creditable fire and police service, of all individuals eligible for this bonus. This benefit has been fully distributed.