[Amended STM 12-14-1972; BOS 2-1-1977; BOS 2-10-1982]
Each participant at retirement on his normal, early or deferred retirement date on or after June 30, 1982, shall be entitled to an annual retirement benefit commencing on his normal, early or deferred retirement date, payable in monthly installments for life thereafter, equal to 1.5% of his average final compensation multiplied by his years of credited service.
Instead of the normal monthly retirement benefit provided under § 54-13, a participant may elect a contingent annuitant option providing for actuarially reduced monthly retirement benefits payable to him during his lifetime after retirement and for the continuance of such payments or a part of them specified by the participant to a contingent annuitant for his life after the death of the retired participant. Such election may be made by a participant at any time at least one year prior to his retirement date or within one year prior to his retirement date upon furnishing evidence of the participant's good health satisfactory to the Board. A participant who has elected this option may not at any time within one year prior to his retirement date revoke or modify such option, except upon furnishing evidence of good health of the contingent annuitant satisfactory to the Board; provided, however, that the death of the contingent annuitant at any time prior to the participant's retirement date shall automatically revoke such election, and further provided that if the contingent annuitant is the spouse of the participant, a divorce granted to either spouse at any time prior to the participant's retirement date shall automatically revoke such election. If a participant who has elected this option dies before his retirement date, no benefits under this option shall be payable to the contingent annuitant. If the participant dies after his retirement date, the contingent annuitant shall receive for life, commencing on the first day of the calendar month coinciding with or next following the retired participant's death, the benefits specified by the retired participant for the contingent annuitant. If the contingent annuitant dies before the participant's retirement date, the monthly retirement benefit normally provided under this plan will be payable to the retired participant as if this option had not been elected. If the contingent annuitant dies after the participant's retirement date, the amount of the payments which the retired participant is then receiving or is entitled to receive will continue unchanged and will cease upon the retired participant's death.
Each participant shall have the option, to be exercised by a written direction to the Board, to elect to have actuarially reduced monthly retirement benefits payable for 10 years certain and for his life thereafter. Such election may be made by a participant at any time at least one year prior to his retirement date or within one year prior to his retirement date upon furnishing evidence of good health satisfactory to the Board. Upon the death of a retired participant after his retirement date but before 120 monthly payments have been made to him, if he shall have effectively elected such a ten-year option, then the balance of such 120 monthly payments shall be made to such beneficiary as he shall have most recently designated in a written instrument signed by him in the presence of one subscribing witness and filed with the Board, either before or after his retirement. If no such designation is on file with the Board at the time of death or is defective for any reason or if such beneficiary shall predecease the retired participant, then the estate of such retired participant shall receive the commuted value of such benefit payable in a lump sum. If the beneficiary, having survived the retired participant, dies before all of said 120 payments have been made, then the commuted value of the balance of said payments shall be paid in a lump sum to the beneficiary's estate. If the participant dies before his retirement date, no benefits shall be payable under this option.
[Amended 10-11-2023]
Each participant who shall have reached his 55th birthday and shall have at least 10 years of credited service shall have the option, to be exercised by a written notice to the Board and with the consent of the Board, to retire at any time thereafter prior to his normal retirement date. The amount of retirement benefits payable to such retired participant shall be computed as provided in § 54-13 hereof, except that the date of such early retirement shall be used in determining his credited service, and the amount thus obtained will be reduced, such reduction to be determined by the actuary in accordance with accepted actuarial practices, if such retirement benefit is to commence prior to such participant's normal retirement date. The contingent annuitant and the ten-year certain options, provided for in §§ 55-14 and 54-15 hereof, may be elected by a participant who elects to retire early under this section, in which case the term "retirement date" shall be deemed to mean early retirement date wherever applicable in §§ 54-14 and 54-15.
If the commencement of retirement benefits under the Federal Social Security Act does not coincide with the early retirement date selected by a participant under § 54-16, a participant retiring in accordance with the provisions of § 54-16, before social security payments begin, shall have the further option, to be exercised by a written request to the Board and with the consent of the Board, to receive an actuarially equivalent retirement income providing larger monthly payments in lieu of the retirement income otherwise payable under § 54-16 upon early retirement, until the date upon which his retirement benefits under the Federal Social Security Act shall commence, at which time his monthly payments hereunder shall be reduced by the approximate amount of the social security retirement benefit, which the participant will receive, so that, insofar as practical, a level total retirement income will be available for the participant. Election of such social security option by a participant shall automatically revoke any contingent annuitant option or ten-year certain option which may have been elected by such participant.
[Amended BOS 2-8-1989]
Any participant may continue in the employ of the Town beyond his normal retirement date and receive credited service while he continues as an employee. The Town shall continue to make contributions on behalf of any participant who defers his retirement under the provisions of this section, and such participant shall continue his contributions as provided in § 54-23 of Article VIII. Such participant's retirement benefits will commence on his retirement date, and his retirement benefit shall be computed as provided in § 54-13 hereof, except that his deferred date of retirement shall be used in determining his credited service.
The benefits provided for herein shall be only such as can be provided by the assets of the trust fund. In the event of the termination of this plan, as provided for in Article X or otherwise, there shall be no liability or obligation on the part of the Town to make any further contributions to the trustee for the purposes of this plan or otherwise.