Police Officers Retirement Plan

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Employee Contribution Rate 9.8%
City Contribution Determined annually by Retirement Board Actuary
Vesting 100% after 10 years of credited service
Normal Retirement Eligibility Any age with at least 23 years of credited service
Age 55 with ten years of service
Early Retirement Eligibility Age 50 with at least 10 years of credited service
Normal Form of Benefit Life Annuity
Definition of Earnings Total cash remuneration and other than base salary shall be limited to 7.5% of base
Benefit Multiplier/Maximum Benefit & Average Monthly Earnings Effective December 16, 2016, the benefit formula multiplier for service earned after September 30, 2012 was increased from 3.00% to 3.25% and the maximum benefit percent was increased from 75.00% to 81.25%. Average monthly earnings during the highest four consecutive years out of the 10 years immediately preceding the determination. Earnings include all compensation excluding overtime, off-duty details, annual sick leave conversion payments, vacation payment incentives, and all end of career payouts (sick, vacation/annual, and compensatory time) up to 107.5% of base salary. Earnings cannot exceed the maximum amount allowed under Internal Revenue Code (IRC) section 401(a) (17).
Cost of Living Adjustment Retirees receive an automatic annual 2.50% cost-of-living adjustment beginning on the January 1st immediately following their retirement with respect to benefits earned prior to October 1, 2012 and an automatic annual 1.00% cost-of-living adjustment beginning on the January 1st that occurs at least five years after their retirement with respect to benefits earned after September 30, 2012. The cost-of-living adjustment is pro-rated for retirement less than one year. (Participants who had earned at least 20 years of Credited Service as of October 1, 2012 receive the 2.50% cost-of-living adjustment with respect to their entire benefit.)

Assumptions Used:  
Assumed Rate of Return 7.50%
Cost Method Entry Age Normal
Salary increase 4.75%
Mortality Rate RP-2000 – Blue Collar – Scale BB