Common use of Retirement Calculation Factors for General Members Clause in Contracts

Retirement Calculation Factors for General Members. (Hired Before July 1, 2009) a. The Retirement Calculation Factors used to calculate a General Member’s allowance will increase to the levels shown below (the “New Factors”) for General Members, hired before July 1, 2002, who retire effective on or after July 1, 2002, unless the General Member elects, before retirement, to have their allowance calculated using the Old Factors, as set forth in SDMC Section 24.0402, (ranging from two percent (2%) at age fifty-five (55), to two point fifty-five percent (2.55%) at age sixty-five (65) or older, with a ten percent (10%) increase to the Member’s Final Compensation), or the Xxxxxxx Factors, as set forth in SDMC Section 24.0402, (ranging from two point twenty-five percent (2.25%) at age fifty-five (55), to two point fifty-five percent (2.55%) at age sixty-five (65) or older). Retirement Age Benefit (New Factors) 55-59 2.50% 60 2.55% 61 2.60% 62 2.65% 63 2.70% 64 2.75% 65 and older 2.80% b. The New Factors apply to all General Members who join the Retirement System after June 30, 2002, but before July 1, 2009, and theirallowances will be capped at ninety percent (90%) of their Final Compensation. The ninety percent (90%) cap also applies to: (1) General Members who joined the Retirement System on or before June 30, 2002, except as provided below; and, (2) General Members who participated in the Retirement System on or before June 30, 2002, who left City employment but are rehired by the City on or after July 1, 2002. Any General Member, whose allowance as of July 1, 2002, is ninety percent (90%) or more using the New Factors may continue to accrue benefits above the ninety percent (90%) cap until December 31, 2002. The General Member’s Allowance will be capped at that time. c. Any General Member who joined the Retirement System before July 1, 2002, may continue to accrue benefits above the ninety percent (90%) cap using either the Old Factors or the Xxxxxxx Factors. If the Member selects one of these Factors, the Member’s Allowance will not be capped, and the Systemwill refund to the Member, at retirement, any excess contributions the Member made to fund the New Factors. d. A General Member may exceed the ninety percent (90%) cap if the Member: i. Applied to purchase Creditable Service on or before June 5, 2002, and thereafter signed the contract to purchase that time; ii. Was hired at age twenty-four (24) or younger; and iii. Will exceed the ninety percent (90%) cap because of the Creditable Service they applied to purchase on or before June 5, 2002. The Member may not exceed the cap by Creditable Service that they applied to purchase after June 5, 2002. e. When a Member who meets the conditions of paragraph five (5) above first becomes eligible for a service retirement, their Retirement Calculation Factor and years of Creditable Service will be capped at that time, even if the Member continues to work and contribute to the Retirement System. The Member’s Final Compensation will not be capped. When eligible to retire, the Member may: i. Continue working and contributing to the Retirement System; ii. Enter DROP; or iii. Retire.

Retirement Calculation Factors for General Members. (Hired Before July 1, 2009) a. The Retirement Calculation Factors used to calculate a General Member’s allowance will increase to the levels shown below (the “New Factors”) for General Members, hired before July 1, 2002, who retire effective on or after orafter July 1, 2002, unless the General Member elects, before retirement, to have their allowance calculated using the Old Factors, as set forth in SDMC Section 24.0402, (ranging from two percent (2%) at age fifty-five (55), to two point fifty-five percent (2.55%) at age sixty-five (65) or older, with a ten percent (10%) increase to the Member’s Final Compensation), or the Xxxxxxx Factors, as set forth in SDMC Section 24.0402, (ranging from two point twenty-five percent (2.25%) at age fifty-five (55), to two point fifty-five percent (2.55%) at age sixty-five (65) or older). Retirement Age Benefit (New Factors) 55-59 2.50% 60 2.55% 61 2.60% 62 2.65% 63 2.70% 64 2.75% 65 and older 2.80% b. The New Factors apply to all General Members who join the Retirement System after June 30, 2002, but before July 1, 2009, and theirallowances will be capped at ninety percent (90%) of their Final Compensation. The ninety percent (90%) cap also applies to: (1) General Members who joined the Retirement System on or before June 30, 2002, except as provided below; and, (2) General Members who participated in the Retirement System on or before June 30, 2002, who left City employment but are rehired by the City on or after July 1, 2002. Any General Member, whose allowance as of July 1, 2002, is ninety percent (90%) or more using the New Factors may continue to accrue benefits above the ninety percent (90%) cap until December 31, 2002. The General Member’s Allowance will be capped at that time. c. Any General Member who joined the Retirement System before July 1, 2002, may continue to accrue benefits above the ninety percent (90%) cap using either the Old Factors or the Xxxxxxx Factors. If the Member selects one of these Factors, the Member’s Allowance will not be capped, and the Systemwill System will refund to the Member, at retirement, any excess contributions the Member made to fund the New Factors. d. A General Member may exceed the ninety percent (90%) cap if the Member: i. Applied to purchase Creditable Service on or before June 5, 2002, and thereafter signed the contract to purchase that time; ii. Was hired at age twenty-four (24) or younger; and iii. Will exceed the ninety percent (90%) cap because of the Creditable Service they applied to purchase on or before June 5, 2002. The Member may not exceed the cap by Creditable Service that they applied to purchase after June 5, 2002. e. When a Member who meets the conditions of paragraph five (5) above first becomes eligible for a service retirement, their Retirement Calculation Factor and years of Creditable Service will be capped at that time, even if the Member continues to work and contribute to the Retirement System. The Member’s Final Compensation will not be capped. When eligible to retire, the Member may: i. Continue working and contributing to the Retirement System; ii. Enter DROP; or iii. Retire.

Retirement Calculation Factors for General Members. (Hired Before July 1, 2009) a. The Retirement Calculation Factors used to calculate a General Member’s allowance will increase to the levels shown below (the “New Factors”) for General Members, hired before July 1, 2002, who retire effective on or after July 1, 2002, unless the General Member elects, before retirement, to have their allowance calculated using the Old Factors, as set forth in SDMC Section 24.0402, (ranging from two percent (2%) at age fifty-five (55), to two point fifty-five percent (2.55%) at age sixty-five (65) or older, with a ten percent (10%) increase to the Member’s Final Compensation), or the Xxxxxxx Factors, as set forth in SDMC Section 24.0402, (ranging from two point twenty-five percent (2.25%) at age fifty-five (55), to two point fifty-five percent (2.55%) at age sixty-five (65) or older). Retirement Age Benefit (New Factors) 55-59 2.50% 60 2.55% 61 2.60% 62 2.65% 63 2.70% 64 2.75% 65 and older 2.80% b. The New Factors apply to all General Members who join the Retirement System after June 30, 2002, but before July 1, 2009, and theirallowances their allowances will be capped at ninety percent (90%) of their Final Compensation. The ninety percent (90%) cap also applies to: (1) General Members who joined the Retirement System on or before June 30, 2002, except as provided below; and, (2) General Members who participated in the Retirement System on or before June 30, 2002, who left City employment but are rehired by the City on or after July 1, 2002. Any General Member, whose allowance as of July 1, 2002, is ninety percent (90%) or more using the New Factors may continue to accrue benefits above the ninety percent (90%) cap until December 31, 2002. The General Member’s Allowance will be capped at that time. c. Any General Member who joined the Retirement System before July 1, 2002, may continue to accrue benefits above the ninety percent (90%) cap using either the Old Factors or the Xxxxxxx Factors. If the Member selects one of these Factors, the Member’s Allowance will not be capped, and the Systemwill System will refund to the Member, at retirement, any excess contributions the Member made to fund the New Factors. d. A General Member may exceed the ninety percent (90%) cap if the Member: i. Applied to purchase Creditable Service on or before June 5, 2002, and thereafter signed the contract to purchase that time; ii. Was hired at age twenty-four (24) or younger; and iii. Will exceed the ninety percent (90%) cap because of the Creditable Service they applied to purchase on or before June 5, 2002. The Member may not exceed the cap by Creditable Service that they applied to purchase after June 5, 2002. e. When a Member who meets the conditions of paragraph five (5) above first becomes eligible for a service retirement, their Retirement Calculation Factor and years of Creditable Service will be capped at that time, even if the Member continues to work and contribute to the Retirement System. The Member’s Final Compensation will not be capped. When eligible to retire, the Member may: i. Continue working and contributing to the Retirement System; ii. Enter DROP; or iii. Retire.

Retirement Calculation Factors for General Members. (Hired Before July 1, 2009) a. 1. The Retirement Calculation Factors used to calculate a General Member’s allowance will increase to the levels shown below (the “New Factors”) for General Members, hired before July 1, 2002, who retire effective on or after July 1, 2002, unless the General Member elects, before retirement, to have their his or her allowance calculated using the Old Factors, as set forth in SDMC San Diego Municipal Code Section 24.0402, (ranging from two percent (2%) at age fifty-five (55), to two point fifty-fifty- five percent (2.55%) at age sixty-five (65) or older, with a ten percent (10%) increase to the Member’s Final Compensation), or the Xxxxxxx Factors, as set forth in SDMC San Diego Municipal Code Section 24.0402, (ranging from two point twenty-five percent (2.25%) at age fifty-five (55), to two point fifty-five percent (2.55%) at age sixty-five (65) or older). Retirement Age Benefit (New Factors) 55-59 2.50% 60 2.55% 61 2.60% 62 2.65% 63 2.70% 64 2.75% 65 and older 2.80% b. 2. The New Factors will apply to all General Members City employees who join the Retirement System after June 30, 2002, but before July 1, 2009, and theirallowances their allowances will be capped at ninety percent (90%) of their Final Compensation. The ninety percent (90%) cap also applies to: . (1) General Members who joined the Retirement System on or before June 30, 2002, except as provided below; and, (2) General Members who participated in the Retirement System on or before June 30, 2002, who left City employment but are rehired by the City on or after July 1, 2002. Any General Member, whose allowance as of July 1, 2002, is ninety percent (90%) or more using the New Factors may continue to accrue benefits above the ninety percent (90%) cap until December 31, 2002. The General Member’s Allowance will be capped at that time. c. 3. Any General Member who joined the Retirement System before July 1, 2002, may continue to accrue benefits above the ninety percent (90%) cap using either the Old Factors or the Xxxxxxx Factors. If the Member selects one of these Factors, the Member’s Allowance will not be capped, and the Systemwill System will refund to the Member, at retirement, any excess contributions the Member made to fund the New Factors. d. 4. Any General Member who joined the System before July 1, 2002, and reaches the ninety percent (90%) cap by choosing the New Factors, may continue to accrue benefits above the ninety percent (90%) cap until December 31, 2002, at which time the Member’s retirement calculation factor and Creditable Service are capped; the Member’s Final Compensation is not capped. On January 1, 2003, the Member must choose one of the following options: a. If the Member is eligible for a service retirement on January 1, 2003, he or she may: i. continue working and contributing to the Retirement System, ii. enter DROP, or iii. retire. b. If the Member is not eligible for a service retirement on January 1, 2003, he or she may: i. continue working and contributing to the Retirement System, or ii. enter the Cap Program [subject to City Council authorization]. If the Member enters the Cap Program, the Member will stop contributing to the Retirement System, and will instead contribute three point zero five percent (3.05%) of his or her Base Compensation, biweekly at the end of each pay period, to a Cap account established for the Member. The City will match these contributions. The Member may continue participating in Cap until he or she first becomes eligible to retire, at which time the Member must either enter DROP or retire. iii. A Cap Program participant who becomes disabled while participating in the Cap Program is eligible to apply for disability retirement benefits. If the Cap participant’s application for disability retirement is ultimately approved by the Board, his or her disability retirement benefit will be calculated using the participant’s age, Creditable Service and Final Compensation as of the day he or she began participating in the Cap Program. 5. A General Member may exceed the ninety percent (90%) cap if the Member: i. Applied a. applied to purchase Creditable Service on or before June 5, 2002, and thereafter signed the contract to purchase that time;, ii. Was b. was hired at age twenty-four (24) 24 or younger; , and iii. Will c. will exceed the ninety percent (90%) cap because of the Creditable Service they he or she applied to purchase on or before June 5, 2002. The Member may not exceed the cap by Creditable Service that they he or she applied to purchase after June 5, 2002. e. 6. When a Member who meets the conditions of paragraph five (5) above first becomes eligible for a service retirement, their his or her Retirement Calculation Factor and years of Creditable Service will be capped at that time, even if the Member continues to work and contribute to the Retirement System. The Member’s Final Compensation will not be capped. When eligible to retire, the Member may: i. Continue a. continue working and contributing to the Retirement System; ii. Enter , b. enter DROP; or iii. Retire, or c. retire.