POMPANO BEACH POLICE & FIREFIGHTERS' RETIREMENT
SYSTEM
SUMMARY PLAN DESCRIPTION
RETIREMENT
BENEFITS
Normal Retirement Benefit
The monthly benefit that you will receive if you retire on
your Normal Retirement Date is called your Normal Retirement Benefit.
The amount of your Normal Retirement Benefit is based on the
following factors:
1. Your Covered Salary - This is the amount of
your compensation including base and regular longevity bonuses,
assignment pay, and temporary upgrade pay, but excluding non-regular
over-time, bonuses, and any other non-regular pay. Covered Salary will
be limited to $150,000 (as adjusted periodically for cost-of-living;
currently adjusted to $170,000) in any one year. However, if you became
a member of the Plan before January 1, 1996, this limitation will not
apply.
2. Your Average Monthly Salary - This is the
average of your Covered Salary for the highest three years preceding your
retirement.
3. Your years of Credited Service at your Normal
Retirement Date.
The calculation of your Normal Retirement Benefit is as
follows:
3.0 % of your Average Monthly Salary multiplied by your first 25 years
of Credited Service plus 2.0% of your Average Monthly Salary multiplied
by your years, if any, of Credited Service in excess of 37.5 years.
As an example, if your
Average Monthly Salary at your Normal Retirement Date is $4,000 and your
Credited Service is 22 years, then the calculation is as follows:
3.0% x $4,000 x 22 years = $2,640. Your
Normal Retirement Benefit payable each month would be $2,640.
In another example, if your Average
Monthly Salary is $4,000 and your Credited Service is 38.5 years, then
the calculation is as follows:
(3.0% x $4,000 x 25 years) +
(2.0% x $4,000 x 1 year) = $3,080.
The retirement benefit is paid to you for the rest of your
life in accordance with the Normal
Form of Benefit Payment as described later (however, see the sections on
Death Benefits After Retirement and Election of Optional Forms of Benefit
Payments). Your benefits from this Plan are paid in addition to any
benefits you may receive from Social Security.
Accrued Benefit
The portion of your Normal Retirement Benefit that you have
earned at any point in time is your Accrued Benefit. Your Accrued
Benefit is computed in the same way as the Normal Retirement Benefit,
except you use your present Average Monthly Salary and Credited Service
in the preceding calculation. The Accrued Benefit is a monthly amount
which starts on your Normal Retirement Date.
Early Retirement Benefit
If you retire early, you may receive your Early Retirement
Benefit deferred to your Normal Retirement Date or immediately.
1. A deferred Early Retirement Benefit is the benefit
that begins on your Normal Retirement Date and is paid to you for the
rest of your life. The benefit is equal to your Accrued Benefit on the
date you terminated employment.
2. An immediate Early Retirement
Benefit is a benefit that begins on your Early Retirement Date and is
paid for the rest of your life. The benefit is equal to your Accrued
Benefit on the date you retire, but reduced for the number of years or
fractions of years by which the starting date of the benefit precedes
your Normal Retirement Date. The benefit is reduced to take into account
your younger age and earlier commencement of benefit payments. The
following table shows how much your benefit will be reduced if payments
begin before your Normal Retirement Date:
|
Number of
Years Early |
Percentage
Reduction |
|
1
2
3
4
5
6
7 |
7.91%
15.12
21.69
27.70
33.19
38.22
42.84 |
However, if you are age 50 or older on your Early Retirement Date, the
Percentage Reduction shall not exceed 3% for each year by which your
Early Retirement Date precedes your Normal Retirement Date.
Delayed Retirement Benefit
The amount of your monthly Delayed Retirement Benefit is
calculated and paid in the same way as the Normal Retirement Benefit.
However, your Average Monthly Salary and Credited Service as of your
actual retirement date are used in the calculation.
Cost of Living Adjustment (COLA)
Effective October 1, 2000, the Plan began to increase
pensions on an annual basis each October 1st. The COLA will
apply to each retiree who has been retired for at least five years.
The annual COLA increase will be 2%. An additional increase of up to
1% may be paid under certain circumstances.
Application for Retirement Benefits
The following procedures are provided to assist you as you
prepare to retire:
NOTE:
Procedures 1-4 and 7 apply to DROP applicants also.
1. Three to six months before your date of
retirement, contact the pension office to request a projection of
retirement benefits.
2.
At least 60 days prior to your date of
retirement, contact the pension office to set up an appointment to
complete an application for retirement benefit.
3. When you apply, you will have to provide to the
Deputy Administrator a certified copy of your birth certificate. In
addition, if you elect a benefit option other than the Life Annuity,
you must also provide a certified copy of your beneficiary's birth
certificate and your marriage certificate, if applicable.
4. When you apply, you will be asked to complete an
Election of Benefits form and choose a benefit option. After you
retire you will not be allowed to change your benefit option;
therefore, choose this option carefully.
5. You must complete a Form W-4P, Withholding
Certificate for Pension & Annuity Payments. Because a portion of your
pension is taxable and a portion may be non-taxable, you may want to
consult with a qualified tax advisor before completing this form. For
further information, refer to IRS Publication 575, Pension and
Annuity Income (available from the IRS).
6. If you would like your monthly benefit payment
electronically transferred to your bank account, you will be asked to
complete a Depository Agreement.
7. Your completed application for retirement will
be placed on the next available Agenda for Board approval following
receipt of the application.
8. The benefit calculation process begins after
your date of retirement. First, the Board actuary will compute your
monthly retirement benefit. Next, the Board will approve your monthly
benefit amount and any retroactive benefit payment due.
9. Please allow 4-6 weeks after your
date of retirement for your first check to be issued. (This first
check will include amounts payable from your date of retirement.) You
will then receive your subsequent benefit checks on or about the first
day of each month.
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