| How much do I contribute to the plan? |
When you graduate from the Police Academy or Fire Department Drill Tower, you begin to contribute 8% of your pre-tax pay each pay period. However, if the plan is not 100% actuarially funded, you will contribute 9% of your pay.
Your contributions are automatically deducted from your paycheck. While you are an active member, your contributions will earn interest every six months (paid on June 30 and December 31).
Once you attain 33 years of service, you no longer contribute to the plan. |
| How is my benefit determined? |
Your benefit is based on a formula that takes into account final average salary and years of service. Log on to see your personal information and review your accrued pension benefit. |
| How is my Service Pension calculated? |
Follow these steps to calculate your service pension:
- Calculate Your Final Average Salary
Your final average salary equals the average monthly pay you received in the last 12 consecutive months prior to retirement. Upon, retirement, you may also have the option to designate which consecutive 12-month period you want to use to calculate your final average salary, please consult your Tier 5 Summary Plan Description (SPD) for additional information.
- Calculate Your Years of Service Pension Percentage
You are credited with 50% of your final average salary at 20 years of service, plus 3% of your final average salary for each additional year of service after 20 years; except in the 30 year when you are credited with 4%. The maximum years of service pension percentage is 90% at 33 years of service. Use the table below to locate your years of service pension percentage based on your years of service.
| If your years of service equals ... |
Then your years of service pension percentage is ... |
| 20 |
50% |
| 21 |
53% |
| 22 |
56% |
| 23 |
59% |
| 24 |
62% |
| 25 |
65% |
| 26 |
68% |
| 27 |
71% |
| 28 |
74% |
| 29 |
77% |
| 30 |
81% |
| 31 |
84% |
| 32 |
87% |
| 33 or more |
90% |
- Calculate Your Service Pension
Multiply your years of service pension percentage by your final average salary to determine your estimated service pension.
|
| How is my benefit paid? |
Your benefit is a guaranteed monthly payment for life and may allow you to provide continuing income to a qualified survivor. |
| What happens if I leave the Fire, Police or Harbor Department before I can retire? |
Your contributions and accrued interest will be refunded to you.
If you have 20 or more years of service and terminate before age 50, for any reason other than disability, you are eligible for a deferred service pension, which is calculated using the lower Tier 3 retirement percentages. If you elect to receive a deferred service pension and die before age 50, your qualified survivors do not receive a pension. |
| When am I eligible to retire? |
You are eligible to apply for a service pension when you are at least age 50 with 20 years of service. Learn how to apply for a service pension. |
| Will I receive cost of living adjustments (COLA)? |
Yes, you will receive cost of living adjustments (COLA) on your benefit. Review the Tier 5 COLA Overview. |
| Am I eligible for disability benefits? |
If you are unable to work due to injury or illness, you may be eligible for a disability pension. Learn more about your disability benefits. |
| What happens if I die? |
- If you are an active member with no qualified survivors entitled to a benefit, your contributions and interest will be refunded to your designated beneficiaries. Complete a Tier 5 Beneficiary Designation form if you wish to update your beneficiary information.
- If you are retired, an allowance may be paid to your qualified survivors.
- If you are retired and there are no qualified survivors entitled to a benefit, there is no refund of contributions and your pension benefits cease.
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Tier 5 is a “defined benefit” plan that provides pension benefits based upon final average salary and years of service. This plan provides service,