[1]
Editor's Note: This article also included
the following example: Mary Jones retires prior to October 1, 2002,
at age 65 with 25 years of service. Her average salary at retirement
is $2,000 per month.
Mary would be entitled to a monthly pension
of $500 (i.e., 1% x 25 x $2,000) payable for her lifetime. Mary could
elect to receive reduced benefits under an optional form that provides
survivor benefits. For example, if Mary's husband was age 68, she
could elect to receive benefits under the fifty-percent surviving
spouse option, in which case she would receive $453.79 monthly for
life, and, upon her death, $226.90 monthly would continue to her husband
for the rest of his life.
A member will be eligible for normal retirement
benefits, provided that he retires from the Borough's employment and,
upon such retirement, he has attained at least age 65 and has completed
at least five years of service.
Monthly benefits as described in § 31-6 will commence on the first day of the month coincident with or next following the member's date of retirement. If the member retires on other than the first day of a month, he will receive a pension payment for his initial month of retirement equal to the amount described in § 31-6 multiplied by the ratio of the days he is retired in the month to the full number of days in the month.
A.
For any eligible member retiring prior to October
1, 2002, such eligible member's monthly pension will be equal in amount
to 1% of his average salary at time of retirement, multiplied by his
years of service at retirement (not to exceed 35 years).
B.
For any member retiring on or after October 1, 2002,
such eligible member's monthly pension will be equal in amount to
1.2% of his average salary at time of retirement, multiplied by his
years of service at retirement (not to exceed 35 years).
Benefits as described in § 31-6 will be paid in the form of a monthly annuity for the member's lifetime only.
In lieu of receiving benefits in the normal form (a life annuity for the member's lifetime only), a member may, in accordance with § 31-30, elect to receive actuarially reduced benefits under a form of payment which provides survivor benefits.
