Two new options have been added to the General Employees Retirement Plan – the Partial Lump Sum Option and the Backdrop Option.

Ordinance 2005-1284 Partial Lump Sum Option - With this option, a retiree may choose to receive 5 percent, 10 percent or 15 percent of the actuarial equivalent value of their monthly benefit as a lump sum payment, with the remaining annuity benefits paid in the standard form. For example, if a retiree elects to receive a 15 percent partial lump sum, 15 percent of the actuarial equivalent value would be paid as a one-time lump sum payment, and 85 percent of the annuity would be paid via a bi-weekly annuity.

Ordinance 2005-1139 Backdrop Option - The backdrop has an inception date of October 2005. In order to utilize this option, the retiree must have at least 30 years of service, and may "drop back" to a date no earlier than October, 2005. For example, employees retiring in February, 2006 would be able to "drop back" four months to October 2005. Retirement would be calculated as of September 30, 2005 and upon retirement, the employee would receive a monthly benefit, as well as a lump sum amount for the four months of backdrop. The maximum backdrop will be five years (60 months), however, an employee will not be able to utilize the full five years until 2010.

These options may not be combined.  If you have any questions concerning these new benefits, please call the Pension Office at 255-7280, or e-mail citypension@coj.net.