Police Officer's Retirement System

Contributions to Police Officer's Retirement System

Employee:

• 8.65% of salary (no overtime).

Employer:

• Varies yearly, determined by amount required to fund the plan based on actuarial calculations.
• As of July 1, 2018 - 40.10%.

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Types of Retirement Benefits

Normal Service Retirement

Eligibility:

• Age 55 or 25 years of service (including sick leave).

Benefit Calculation:

FAS (Final Average Salary) = average of member’s highest 78 consecutive pay periods (36 months) salary

• 2.8% x FAS x Years of Benefit Service x 1.03
• Police do not contribute to Social Security and will not receive Social Security benefits based on this service. (Sick leave is credited as service (but not for vesting) and in the computation of highest 78 consecutive pay periods).

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Early Service Retirement

Eligibility:

• 20 years of service (including sick leave).

Benefit Calculation:

• Same as Normal Service Retirement but reduced by a percentage determined by age and service at retirement.

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Deferred Vested

Eligibility:

• At least five years of retirement eligible service. Benefits begin at age 55.

Benefit Calculation:

• Same as Normal Service Retirement.

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Ordinary Disability

Eligibility:

• Disability is not job-related.

Benefit Calculation:

• Same as Normal Service Retirement.

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Service-Connected Disability

Eligibility:

• Any amount of retirement eligible service. Disability must be job-related.

Benefit Calculation:

• Total Disability: 66²/3% of the salary the member received on the date of accident or injury, less payments from Workers' Compensation. (At age 55, converts to 60% of the salary that would have been received had no injury occurred and the performance of duty continued.)

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DROP (Deferred Retirement Option Program)

Eligibility:

• Same as Normal Service Retirement.

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Survivor Benefits

• Before Retirement
  • Refund of contributions UNLESS automatic benefits are payable to your surviving spouse or children.
• Automatic Death Benefits (indexed)
• After Retirement
  • Automatic benefit plus optional Joint and Contingent Spouse and Handicapped Child benefit of 50%, 66²/3%, or 100% of retiree's reduced benefit.

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Cost-of-Living Adjustment (COLA)

• The current COLA for 2018: 1.8%
• COLAs are effective July 1 and are based on the change to the CPI-U of the Washington Metropolitan Area for the year ending in March up to a maximum of 4.0%. (An additional 1% may have been included if there was an actuarial surplus that year. This provision is no longer applicable in any of the three retirement systems.)
• COLAs for the last 21 years: 2017-1.3%; 2016-1.0%; 2015-0.2%; 2014-1.6%; 2013-1.4%; 2012-2.8%; 2011-3%; 2010-2.3%; 2009-0.4%; 2008-5.0%; 2007-5.0%; 2006-4.3%; 2005-4.9%; 2004-2.9%; 2003-3.6%; 2002-2.67%; 2001-3.4%; 2000-3.8%; 1999-2.6%; 1998-1.8%; and 1997-2.2%. (2.74% average over the past 20 years.)

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Minimum/Maximum Benefits:

• Minimum: $300 annually.
• Maximum: amount allowed under I.R.C. Section 415.