1. 5% Lump Sum Bonus

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

What "Base" Means
 

• For those in payment as of January 1, 2000:
  
  Generally, 12 times the full December 1999* allowance (including any retroactive adjustments, such as for open contracts, military service credit, lawsuits or PSO reselections). It does not include other adjustments, such as for Social Security benefits, worker's compensation offset, earnings limitations, etc.
  
  *If payment to the eligible individual began after December 1, 1999, use the full January 2000 allowance.
  
  For example, if the member's adjusted December 1999 allowance was $900, the base for purposes of this calculation is $900 x 12, or $10,800. 
   
• For those whose payments began after January 1, 2000:
  • If the bonus is paid to a member:
    The maximum retirement allowance (initial annual allowance) reduced for early retirement, if applicable, but not reduced for any optional form of payment elected under s. 36-05-7.
  • If the bonus is paid to a surviving spouse:
    The initial annual benefit payable to the spouse.  
     

What "Factor" Means

This is an actuarial factor based on "Attained Age." (See the table in Chapter 36, Section 36-05-11-a.)

• For those with a retirement date on or before January 1, 2000: "Attained Age" in the factor table refers to the age reached on the 1999 birthday.  
• For those with a retirement date after January 1, 2000: "Attained Age" in the factor table refers to the age reached on the birthday that coincides with (or immediately precedes) the retirement date.  

Note: 
 

The following spouses are never eligible for a 5% Lump Sum Bonus, a Retiree Special Bonus, or an 8.6% Lump Sum Bonus:

• the surviving spouse of a fireman or policeman who died while in receipt of either a Fire & Police duty disability retirement allowance or a Heart & Lung duty disability retirement allowance; and  
• a surviving spouse receiving a Firemen and Policemen's Survivorship Fund surviving spouse benefit.   

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2. Retiree Special 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:

1. (Base times Factor)
2. (applies only if there is an Overpayment Offset)
   1. minus Overpayment Offset
    

What "Base" Means

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.

What "Factor" Means

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).

What "Overpayment Offset" Means

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:

• Three times Base or
• The amount of Catch-up and COLA Overpayment

For Spouse Survivors in payment as of 1/1/2000:
The lesser of:

• Three times Base or
• The sum of the Catch-up and COLA Overpayment paid to the spouse survivor, plus the Catch-up and COLA Overpayment paid to the deceased member

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3. Allowance to Spouse Survivor (Date of Death Value)

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.

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4. 1.5%/2% COLA/Expansion Improvement

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:

• Increases to the Fire & Police or Heart & Lung duty disability surviving spouse benefit occur on anniversaries of the member's death. 
• Increases take effect each January 1 for: members who retired on service retirement or converted to service retirement prior to 1988; their eligible spouse survivors; and eligible PSO spouse survivors who commenced payment prior to 1988. 

*The following individuals are not eligible for any COLAs:

• Survivors who are not spouses 
• Spouses receiving a spouse survivor allowance under Option 4, where the monthly benefit to the spouse is not a percentage of the member's monthly allowance 
• Surviving spouses receiving a Firemen and Policemen's Survivorship Fund benefit 
• Firemen and policemen retired on duty disability. (These individuals already receive increases in their monthly duty disability allowance that are tied to negotiated pay increases for active firemen and policemen.) 

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5. CPI COLA Expansion/Improvement

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:

• Increases to the Fire & Police or Heart & Lung duty disability surviving spouse benefit occur on anniversaries of the member's death.  
• If the original retirement, separation from service or pre-retirement death occurred in 1993 or 1994, the first increase takes effect on the March 1 that follows the first full calendar year of retirement (or on March 1, 2000, if later, for individuals who were not eligible for a CPI COLA under the pre-GPS plan), unless the member retired on duty disability in 1993 or 1994 and subsequently elects an extended life duty disability retirement allowance. In that case, the increases occur on the later of the actual year 2000 anniversary or the actual 1st anniversary of extended life retirement. 

*The following individuals are not eligible for any COLAs:

• Survivors who are not spouses 
• Spouses receiving a spouse survivor allowance under Option 4, where the monthly benefit to the spouse is not a percentage of the member's monthly allowance  
• Surviving spouses receiving a Firemen and Policemen's Survivorship Fund benefit  
• Firemen and policemen retired on duty disability. (These individuals already receive increases in their monthly duty disability allowance that are tied to negotiated pay increases for active firemen and policemen.)

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6. 2% Guarantee for CPI COLA

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:

• Members of Local 215 or the MPA and in active service on or after January 1, 1998
• Members of the MPSO and in active service on or after January 1, 1999; or
• Non-represented firemen and policemen in active service on or after January 1, 2000.

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7. Guaranteed Payment of COLAs

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.)

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8. Imputed Military Service Credit

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.

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9. Military Service Credit Cash Bonus

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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10. PSO Reselect - General City Employees

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. 

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11. Retirement with 25 Years of Service - Policemen

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.

• For MPA members, this benefit is effective for service retirements after January 1, 1998.  
• For MPSO members, this benefit is effective for service retirements after January 1, 1999.  
• For non-represented members, this benefit is effective for service retirements after January 1, 2000.  

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.

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12. Retirement at Age 49 with 22 Years of Service - Firemen

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.

• For Local 215 members, this benefit is effective for service retirements after January 1, 1998.  
• For non-represented members, this benefit is effective for service retirements after January 1, 2000.  

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.

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13. Imputed Service Credit - Firemen and Policemen

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.

• For those who retire or die in active service as policemen, and who either have at least 25 years of creditable fire or police service* or have reached age 57, the amount of the credit is 1.5 years.  
• For those who retire or die in active service as firemen, the amount of the service credit is:
  • if at least 20 years of creditable fire or police service*: 1.5 years.
  • if less than 20 years of creditable fire or police service* : (1.5 times creditable fire or police service*) divided by 20.  

This additional service credit is not used to determine eligibility for any ERS benefit.

*Not counting additional imputed service under GPS benefits.

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14. Refund of 1.6% Contribution - General City Employees

Benefit

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.

Background

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.

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15. Fire and Police Survivorship Fund Dissolution Benefits:
$300/$600 per Month for Eligible Fire & Police Beneficiaries

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:

• For one eligible recipient*: $300 per month.  
• For two or more eligible recipients*: $600 per month.  

*Eligible recipients of this benefit include the following beneficiaries in payment (or eligible for deferred Fund benefits) as of 1/1/2000:

• Members' unmarried surviving spouses.  
• Members' unmarried children under age 18.  

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.

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16. Fire and Police Survivorship Fund Dissolution Benefits:
2 Years Imputed Service Credit for Eligible Police Who Were Active F&P Survivorship Fund Members on 1/1/2000

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:

• retire on service retirement as a policeman; or  
• convert to service retirement* after retiring on duty disability as a policeman.  

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.

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17. Fire and Police Survivorship Fund Dissolution Benefits:
8.6% Lump Sum Bonus for Eligible Fire & Police Who Were Active F&P Survivorship Fund Members on 1/1/2000

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

What "Base" Means

• For an eligible member in active service as of January 1, 2000 who takes service retirement: The annual allowance payable when the allowance commences, before reduction for any optional form of payment elected under s. 36-05-7. 
• For the PSO spouse survivor or accidental death surviving spouse beneficiary of a member in active service as of January 1, 2000: The annual allowance payable when the allowance commences. 
• For those who retired on disability and are eligible to convert to service retirement: The annual conversion service retirement allowance (CSRA) earned as of the conversion age (before adjustment for any elected option). 
• For those who retired on disability but are ineligible to convert to service retirement and are age 63 or younger as of January 1, 2000 (or if later, as of the disability retirement date): The "hypothetical" annual conversion service retirement allowance (CSRA) earned at age 63, calculated as if the member were eligible to retire on CSRA at 63 
• For those who retire on disability after January 1, 2000 and are older than age 63 as of the disability retirement date: The annual disability allowance payable when the allowance commences (before adjustment for any elected option). 

What "Factor" Means

This is an actuarial factor based on "Attained Age." (See the table in Chapter 36, Section 36-05-11-a.)

• For those who retired on a service retirement allowance, are an eligible PSO spouse survivor or an eligible accidental death surviving spouse beneficiary: "Attained Age" in the factor table refers to the age on the birthday that coincides with (or immediately precedes) the retirement date. 
• For those who retired on disability and are eligible to convert to service retirement: "Attained Age" is the age on the birthday that coincides with (or immediately precedes) the conversion date. 
• For those who retired on disability but are ineligible to convert to service retirement: "Attained Age" is the greater of age 63, or the age on the birthday that coincides with (or immediately precedes) the retirement date. 

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18. F&P Survivorship Fund Dissolution Benefits:
Lump Sum Payment for Individuals who were Surviving Former Members of the F&P Survivorship Fund on 1/1/2000

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.

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