2022-059 - Approving and Agreement Regarding Freeze of Fire Pension Fund & Authorizing the Mayor to Execute Same

Home Browse Search

Section 5 Optional Forms of Retirement Income 5.01 General Rules. A Firefighter eligible to receive a benefit under the Plan may elect to receive his retirement income under any of the options listed below. Option Three, the DROP, may be combined with any other optional form of payment; however, a member may elect only one of the optional forms of payments available under Options One or Two. A Firefighter who has not been credited with twenty (20) years of Service before the Effective Date, may elect to receive his retirement income only under Option One or Two. If a Firefighter elects an optional form of payment and then dies prior to the date his payments commence, the election of the optional form of payment shall be null and void, and the survivor's benefits payable under the Fund shall be paid as if no optional form of payment had ever been elected. 5.02 Option One - Joint and 100% Spouse Annuity. A Firefighter who elects Option One will receive the monthly Frozen Benefit payable for the Firefighter's lifetime with the provision that upon his death, one hundred percent (100%) of the same monthly Frozen Benefit shall be paid to his Eligible Surviving Spouse. The monthly benefit payable under Option One will equal the benefit calculated under Section 2, multiplied by the Conversion Factor specified in Exhibit A, based upon the ages of the Firefighter and the Firefighter's Spouse at the date monthly payments commence 5.03 Option Two - Straight Life Annuity. A Firefighter who elects Option Two will receive a monthly retirement benefit payable for his lifetime and which ceases upon his death. If Option Two is elected by a Firefighter who is married at the time of the earlier of (i) Termination of Service, or (ii) the commencement of benefits, then it is available only after the Board of Trustees receives written consent of the spouse for election of this option. The monthly benefit payable under Option Two will equal the benefit calculated under Section 2, multiplied by the Conversion Factor specified below, based upon the Firefighter's age at the date monthly payments commence. Conversion Factors from Normal Form of Benefit to Strai ht Life Annuit Firefighter's Age Conversion Firefighter's Age Conversion Nearest Birthda Factor Nearest Birthda Factor 45 1.04914 56 1.09820 46 1.05238 57 1.10437 47 1.05584 58 1.11083 48 1.05952 59 1.11757 49 1.06343 60 1.12461 50 1.06758 61 1.13193 51 1.07199 62 1.13953 52 1.07666 63 1.14736 53 1.08160 64 1.15537 54 1.08682 65 1.16352 55 1.09234 5.04 Option Three - DROP. A Firefighter may elect to have his benefit calculated as if he had Terminated Service on his DROP Eligibility Date. a. A Firefighter's DROP Eligibility Date is the later of (A) the earlier of Firefighter's Normal Retirement Date or Early Retirement Date, or (B) the date two years prior to the date the Firefighter elects to receive benefits. A Firefighter may elect to have his monthly pension and DROP payment calculated using a date 7