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Item
16 - Retirement
16.1 Maintenance of Benefits
The District agrees to maintain the Basic Retirement
Plan at the level of benefits described in the Plan and
the
modifications described in this section and Sections
16.2, 16.3 and 16.4 during the term of the agreement and pay 100% of the Plan
costs for eligible employees hired before January 1, 2006. For eligible employees
hired January 1, 2006, or after, the District will modify the Basic Retirement
Plan as follows:
- Final salary calculation used for pension
formula will be Base Salary excluding
any other payments such as Overtime, Vacation Payout, etc.
- The standard
benefit for calculation will be Single Life Annuity.
This eliminates
10, 15, and 20 year certain options.
- The COLA formula will be based on
the CPI April 1 of each year up to a maximum
of 3%.
An employee's normal retirement date shall be the first
day of the calendar month coincident with or next succeeding
his/her sixtieth (60) birthday. Employees
shall be eligible to receive pension benefits as of the first day of any
calendar month in accordance with the following:
- Participants hired on or after March 1, 1967, who
separate service prior to attaining age 55, having completed
at least 5 years of credited service
shall
be eligible to receive pension benefits upon reaching age 55.
- Participants
who separate after age 55, having completed at least
5 years of credited service shall be eligible to retire
and to receive
pension benefits.
Employees who retire having met the conditions described
in Paragraph b above, shall be entitled to receive health
benefits in accordance with
the provisions
of Item 15 of this Resolution applicable at the employee's retirement
date. Also, employees who retire on or after December 1,
2000, and having met
the conditions
described in Paragraph b above and their eligible dependents, as defined
in the dental and vision plans, shall be each entitled to receive dental
and vision
benefits until they reach age 65. The retiree shall be responsible for
any required
deductibles and co-payments.
In the event an employee who has attained 840 months
of age and credited service dies while still an employee,
and before reaching age 55, the
employee’s
surviving spouse will receive, at the time the employee would have reached age
55, the benefit option selected by the employee or, if no selection had been
made, a 100% joint and survivor benefit, adjusted based on the cost of living
pursuant to the Pension Plan that the employee would have been entitled to receive.
16.2 Normal Retirement Benefit
Effective January 1, 2006, a Participant’s Normal Retirement Benefit shall
be a monthly pension payable for life equal to 2.75% of the Participant’s
Average Monthly Compensation, as defined in the Basic Retirement Plan, multiplied
by his/her Years of Credited Service.
16.3 Early Retirement Benefit
Effective January 1, 2006, a Participant’s
Early Retirement shall be a monthly pension payable for life,
based on the benefit rate set forth below:
| Age at Retirement |
Benefit Rate |
55
|
2.00% |
56
|
2.15% |
57
|
2.30% |
58
|
2.45% |
59
|
2.60% |
| 60 |
2.75% |
16.4 Life Payments
Normal and Early Retirement Benefits for Participants hired before January
1, 2006, shall be a monthly pension payable for life, with 120 payments
guaranteed. Normal and Early Retirement Benefit, for a Participant hired January
1, 2006
or after, shall be a monthly pension payable for the Participant’s
life. In no instance shall a Participant receive a monthly pension payment
at the time of retirement greater than the employee’s Average Monthly
Compensation while the employee was employed at the District.
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