Introduction
The city provides a great benefits package for its employees – and the pension and retirement benefits provided by the General Employees Pension Plan (GEPP) and the Corrections Officers Pension Plan (COPP) are the jewels in the crown. It's never too early to learn about the valuable benefits of retirement plan membership.
We all know that time flies, and those milestones can creep up on you – before you know it, you might start to have questions about what kind of benefits you will be entitled to on that faraway day called "retirement."
Click on the PDF file below to download and/or print Summary Plan Description published in April 2007.
Summary Pension Plan (pdf 70K)
Types of Retirement Plans
There are basically two kinds of retirement plans: Defined Benefit and Defined Contribution. The city has three plans, one for police and fire, another for "general employees" and a third for Certified Corrections Officers. All three city pension plans are Defined Benefit Plans.
What is the Difference Between a Defined Contribution Plan and a Defined Benefit Plan?
In a Defined Contribution Plan, the participant contributes a specific amount to the plan. The benefit that the participant receives at retirement is the result of the amount contributed, the rate of return, and the length of time the money is invested.
In a Defined Benefit Plan, the benefit that the participant receives at retirement is determined by a formula that takes into consideration the participant's base salary during the highest three consecutive years during the 10 years prior to retirement, the length of service and the participant's age. Valuations are made by an actuary to determine how much money must be contributed to the plan in order to generate the amount of retirement benefit that will be needed. Throughout his or her career, each participant and the employer make contributions in accordance with the actuary's valuations to ensure that there is sufficient money available to pay the earned benefit for the projected life expectancy of the retiree and, if applicable, his or her surviving spouse.
Who is Covered?
General Employees Pension Plan:
All civil service employees, except police and firefighters, who successfully pass the Pension Plan's medical examination are required to participate in the Plan. Employees who are appointed by the mayor, or other officials, have the option to join the Plan if they pass the medical examination, but they are not required to join. Temporary, part-time, and Special Purpose employees are not eligible to join. However, if they later become civil service or appointed, they can "buy back" this service and get credit for the time they worked as temporary, part-time or special purpose.
Corrections Officers Pension Plan:
All Certified Corrections Officers who successfully pass the medical examination are required to participate in the Plan.
What does it cost me?
The amount contributed by Plan participants is set by city ordinance. The current contribution rate is eight percent (8%) of base salary and service raises where applicable. By ordinance, the employer is required to contribute any additional amounts necessary to fund expected benefits in accordance with the actuary's valuation.
What is the relationship between Social Security and the Pension Plan?
Members of the city's Pension Plan do not participate in the social security system, except that employees hired after 1986 pay into the Medicare portion of social security. Pension Plan participants do not contribute to social security and their employment with the city does not count toward eligibility for retirement or disability benefits under the social security system.
Death and disability coverage.
The reason that prospective employees are given a pension medical examination is that the Pension Plan has death and disability features. Pension Plan participants who become totally and permanently disabled during their employment, may qualify for a disability pension before they would be eligible for a regular retirement on the basis of service. Additionally, when an employee dies while an active Plan participant, his or her spouse, unmarried minor children and/or handicapped children, or beneficiary/estate may receive either survivor benefits or a refund of contributions paid by the participant.
So when can I retire?
You can vest your benefits at any time after completing five years of pension service. If you leave city employment after you have vested, but before you are eligible to retire, you can apply for a deferred retirement and start receiving your pension at age 65.
To receive immediate benefits when you stop working for the city, you must meet one of the following provisions:
You can retire at any age with 30 years of service
You can retire at age 55 with 20 years of service.
You can retire at age 65 with five years of service.
You might wish to choose a reduced benefit at early retirement:
At age 50 you can retire with 20 years of service with the dollar amount of your benefit reduced by ½% for each month that your age is less than 55.
Or, you can retire at any age with 25 years of service and a lower accrual rate.
What kind of retirement benefit can I expect?
Your monthly retirement benefit is determined by the following basic formula:
Average Monthly Salary multiplied by Years of Pension Service multiplied by a 2.5% Accrual Rate
The maximum retirement benefit provided is 80% of final average (three years) salary after 32 years of service.
Taking retirement at any age with 25 years of service will entitle you to a reduced accrual rate of 2%, or 50% of your final average (three years) salary.
What happens to my benefit if I die after retirement?
When a married retiree dies, his or her spouse, and unmarried minor children and/or handicapped children would be entitled to receive survivor benefits. If the retiree is single, a refund of the remaining contributions paid by the retiree, would be paid to their beneficiary or to their estate.
How is the Pension Plan administered?
Board of Pension Trustees
The Plan is governed by a Board of Trustees who have fiduciary responsibility under Florida law for stewardship of the Plan's assets. They operate as a public body subject to the Sunshine Law and Florida Statutes governing operation of public pension plans.
The Trustees include the Chief Operating Officer, the Director of Administration and Finance, and the Chief of Human Resources whose membership is specified in the Pension Ordinance. The additional trustees include a representative of the Retirees Association, a representative of the Pension Advisory Committee, a representative of the Corrections Officers Advisory Committee and two outside members appointed by City Council from the investment community.
The Board of Pension Trustees meets monthly and is charged with responsibility for making policy decisions regarding the Plan.
Pension Office
The Pension Plan Administrative Office, which reports to the City Treasurer within the Finance Department, administers the day-to-day operations of the Plans.
Pension Advisory Committee
The Pension Advisory Committee (PAC) is an elected body representing Pension Plan members. Elections are held biennially - every two years. If you are a GEPP member, you will receive election materials and a ballot when the next PAC election is held.
Corrections Officers Pension Advisory Committee
The Corrections Officers Pension Advisory Committee is an elected body representing the certified corrections officers enrolled in the Corrections Officers Pension Plan. Elections are held biennially - every two years. If you are a member, you will receive elections materials and a ballot when the next COPAC election is held.
What other things should I know about?
Eligible participants can purchase credit for previous service with the city, old county or other covered employers.
The cost of purchasing prior service is 8% at the employee's current salary at the time of purchase. Purchases of one or more years of service may be paid for through payroll deduction.
A new provision to the Plans now allows for the on-going ability to purchase certain outside agency time at 8%, to a maximum of five years, if you were employed by the City at any time between October 21, 1987 and February 18, 1992, and the time you would like to purchase occurred prior to February 18, 1992. All other outside agency time may be purchased at the full actuarial equivalent cost. Outside Agencies include: Duval County prior to consolidation; any agency of the judicial branch of government in Duval County under the Florida Retirement System; the State Attorney in Duval County; the Public Defender in Duval County; the Jacksonville Transportation Authority; the Duval County School Board; the former Duval County Hospital Authority; the employees or officers of any Duval County constitutional officer who served under the Florida Retirement System; the Agriculture Department employees who participated in the Florida Retirement System; the Jacksonville Port Authority; the Jacksonville Aviation Authority; and the Medical Examiners Office.
Vested employees may also purchase up to two years of military service. The cost of purchasing military time is 20% of earnable compensation.
Retirees immediately receive a health care supplement of $5.00 per month per year of service - up to $150 a month. Retirees are also entitled to a cost of living adjustment (COLA) five years after their group retirement date. The COLA adjustment is fixed at 3% annually.
Retirees are eligible to continue coverage of themselves and eligible dependents in the city's health insurance programs.
A retiree from the city may work for any outside employer after retirement without affecting his or her city pension benefit. However, if a retiree from the city becomes employed in any capacity by any government agency that participates in the General Employees Pension Plan or the Corrections Officers Pension Plan, the pension benefit will be discontinued and pension contributions will be resumed. This includes the general government, JEA or other local government agency, but this does not apply to elected positions. The only exception is employment as part time temporary bailiffs and poll workers.
If you have any questions or require additional information, please contact the city's Pension Office, at 255-7280, Suite 100, Jake M. Godbold Building, 407 North Laura Street, Jacksonville, FL 32202.
This document represents a brief summary of the City of Jacksonville Retirement System, its organization and operation. If there are any differences between this summary and the statutes, ordinances, or rules and regulations governing the Plans, the legal documents will always govern.