The annual retirement benefits of a police employee eligible
for a normal retirement benefit who has applied therefor shall be
determined from the following table at the time of application for
retirement:
2.00% prior to July 1, 1988
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2.25% effective July 1, 1988
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2.50% effective July 1, 1992
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of the annual average of the highest annual earnings received
by a police employee from the Town during any four consecutive years,
multiplied by the police employee's years of credited service and
fractions thereof. If the final year of earnings before retirement
or termination is a partial year, this partial year of earnings will
be annualized before determining the four highest years of earnings.
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A. For current members of Local 331, IBPO, service after 26 years of credited service shall not be considered as credited service for retirement purposes except as provided in Article
II, §
51-2, or in Article
VI, §
51-11, above.
B. A police employee who retires on or after July 1, 1987, with at least
20 years of credited service on the normal retirement date shall be
entitled to a pension of at least 50% of the police employee's highest
average annual earnings, computed as stated hereinabove.
C. A police employee who retires after July 1, 1989, shall be entitled to a pension not to exceed 65% of the police employee's highest average annual earnings, computed as stated hereinabove, except that, to the extent that the use of additionally purchased credited service as provided in Article
II, §
51-2, results in a retirement benefit greater than 65%, then the higher benefit shall be allowed. A police employee who, as of June 30, 1989, has accumulated more than 65% of the police employee's highest average annual earnings under the formula in effect on that date shall have that percentage as his maximum benefit.
D. Notwithstanding the foregoing, if otherwise qualified, a supervisory
police employee who retires on or after July 1, 1989, shall be subject
to a pension limitation of 70% of the police employee's highest average
annual earnings, computed as stated hereinabove, and not 65% of such
earnings.
E. In no event shall the total annual retirement benefits payable to
any police employee exceed the lesser of 65% of the employee's highest
average annual earnings, computed as stated hereinabove, and the maximum
benefits permitted under any federal or state law applicable to this
plan. One-twelfth of a police employee's annual retirement benefits
shall be paid each month.
F. A police employee who retires after January 12, 2012, shall be subject
to a pension limitation of 105% of the police employee's base salary
at the time of retirement.
G. Any police employee hired after January 12, 2012, shall be subject
to a pension limitation of 85% of the police employee's base salary
at the time of retirement.
For purposes of calculating retirement benefits pursuant to this Article
VII, an employee's annual earnings shall be determined without regard to any reductions pursuant to Section 125, 414(h)(2) or 457 of the Internal Revenue Code of 1986, as amended.
The monthly deferred retirement benefit at the normal retirement date of an eligible employee shall be equal to the normal retirement benefit at set ages determined in accordance with §
51-15 of this Article
VII based on his credited service at the time of termination of active employment.
The monthly immediate early retirement benefit of an eligible employee shall be equal to the normal retirement benefit determined in accordance with §
51-15 of this Article
VII based on his credited service at the time of early retirement, reduced actuarially in accordance with the number of months by which such employee has not reached his normal retirement date at the time of withdrawal from active employment; provided, however, that in making the actuarial reduction hereunder for immediate commencement of benefits, in the case of an eligible employee who has completed 35 or more years of actual service with the Town at the time of withdrawal from active employment, there shall be added to the actual age of such employee at the time of withdrawal from active employment one additional year for every five years of service of the employee with the Town in excess of 30 years. For purposes hereof, years of service shall be calculated in the manner provided for credited service in the definition of "credited service" in §
51-2 of Article
II.
In the event that an employee, a retired employee or a former
employee who is entitled to a deferred retirement benefit shall die
before receiving an aggregate amount of pension at least equal to
the aggregate of his own contributions to the plan plus five-percent
interest, the difference shall be paid in a lump sum to his beneficiary
or his estate.