When can I retire?
You retire on an unreduced benefit at age 65 with 7 years of service.

When can I take an early retirement?
You can retire early between the ages of 55 and 65 if you have completed three years of service.

How much is my benefit reduced for early retirement?
Your benefit is reduced 2% for each year younger than 65 you are when you retire. For certain employees hired on or after 1/1/06 there is a greater reduction for early retirement.

What if I work beyond age 65?
Your benefit will be increased by using all service, or by using service at age 65 and an actuarial increase, whichever results in the larger benefit.

How is my benefit calculated?
The formula is 1.60% x AFC x Service at age 65 not more than 25 years, plus .5% x AFC x Service at age 65 more than 25 years. AFC is your Average Final Compensation, which is the average of your best three years of base earnings. For certain employees hired on or after 1/1/06 the accrual rate is 1.40%.

How much do I contribute?
Some B participants contribute to the plan. Most B participants contribute 3% of their gross base wage. It varies, consult your collective bargaining agreement or policy.

What does vested mean?
The amount you are vested is the percentage of your earned benefit that you are entitled to. You are 20% vested after three years, and the percent vested goes up 20% a year until at seven years you are 100% vested.

What if I become disabled?
If you meet the definition of disability, you may be eligible for the disability benefit which is wage continuation at 75%. The benefit may begin 90 days after the onset of disability, which is defined as the first day you did not work. The time that you are totally disabled is counted as service credit toward an eventual service retirement.

What happens if I die while a City employee?
If you have a legal spouse at the time of your death, a survivor's benefit in the amount of 30% of your basic monthly earnings will be paid until the earlier of your spouse's death, second anniversary of remarriage, or attainment of age 62.

How is my benefit protected from the effects of inflation?
The System provides for cost of living increases matching the Consumer Price Index up to 5%. At the time of retirement you have three choices in terms of the cost of living increases. You can choose the normal accrual rate (1.60% or 1.40% depending on your hire date) with the full cost of living increase payable. You can choose a higher accrual rate (1.90%) with half the cost of living increase payable. Finally you can choose an even higher accrual rate (2.20%/2.00%) with no cost of living increase payable. For most B participants hired on or after 1/1/06 the only choice is the 1.4% accrual rate with the full cost of living.