Sec. 19. Pension.
19.1. The amount of a member’s straight life pension, payable upon retirement as provided in this Article, shall be calculated as follows:
a. A Tier 1 member’s straight life pension, payable upon retirement as provided in this Article, shall be the greater of the sum of subsections (i), (ii), and (iii) below, or the amount set forth in subsection (iv)(1) or (iv)(2) below.
(i) 2.0 percent of the member’s final average compensation multiplied by the sum of the member’s credited service, subject to a maximum of 32.5 years, plus the member’s unused sick leave credited service; and
(ii) 1.0 percent of the member’s final average compensation multiplied by the portion, if any, of the member’s credited service which is in excess of 32.5 years, subject to a maximum of 3 years; and
(iii) 0.5 percent of the member’s final average compensation multiplied by the portion, if any, of the member’s credited service which is in excess of 35.5 years;
(iv)
(1) or $500.00 per month if member has 15 or more years of credited service, or
(2) $250.00 per month if member has less than 15 years of credited service.
(v) Unused sick leave shall not be included as credited service for computation of years of service under foregoing subsections 19.1(a)(ii), 19.1(a)(iii), 19.1(a)(iv), and Tier 2 Members shall have the portion of their straight life pension attributable to unused sick leave credited service calculated in accordance with subsection 19.1(a)(i) above.
b. A Tier 2 Member’s straight life pension, payable upon retirement as provided in this Article, shall be calculated as provided in subsections (i), (ii), (iii) and (iv) below, but without including unused sick leave credited service in the calculation:
(i) if the member has less than 20 years of credited service, 2.1 percent of the member’s final average compensation multiplied by the sum of the member’s credited service; or
(ii) if the member has 20 or more years of credited service, but less than 25 years of credited service, 2.15 percent of the member’s final average compensation multiplied by the sum of the member’s credited service; or
(iii) if the member has 25 or more years of credited service, but less than 30 years of credited service, 2.20 percent of the member’s final average compensation multiplied by the sum of the member’s credited service; or
(iv) if the member has 30 or more years of credited service, 2.30 percent of the member’s final average compensation multiplied by the sum of the member’s credited service.
c. In addition to the amount specified in subsections (b)(i), (b)(ii), (b)(iii) and (b)(iv) above, an amount will be added to each Tier 2 Member’s straight life pension, payable upon retirement as provided in this Article, as specified in subsection 19.1(a)(v) above.
d. A Tier 3 Member’s straight life pension, payable upon retirement as provided in this Article, shall be calculated as provided in subsections (i), (ii), (iii) and (iv) below:
(i) if the member has less than 10 years of credited service, 1.85 percent of the member’s final average compensation multiplied by the sum of the member’s credited service; or
(ii) if the member has 10 or more years of credited service, but less than 20 years of credited service, 1.9 percent of the member’s final average compensation multiplied by the sum of the member’s credited service; or
(iii) if the member has 20 or more years of credited service, but less than 30 years of credited service, 2.0 percent of the member’s final average compensation multiplied by the sum of the member’s credited service; or
(iv) if the member has 30 or more years of credited service, 2.1 percent of the member’s final average compensation multiplied by the sum of the member’s credited service.
A member may elect, at any time prior to the date of the first payment of the member’s pension is made, to be paid the pension under an optional form of payment provided in Section 24.1 in lieu of the straight life form of payment.
19.2. In the event a retirant dies before the aggregate amount of straight life pension payments received by him equals the accumulated contributions standing to his credit in the employee’s savings fund at the time of his retirement, the difference between his said accumulated contributions and the said aggregate amount of pension payments received by him shall be paid from the pension reserve fund to such person or persons as he shall have nominated by written designation duly executed and filed with the Retirement Board. In the event there be no such designated person surviving the retirant such difference, if any, shall be paid to his legal representative. No benefits shall be paid under this section on account of death of a retirant if he was receiving a pension under Options A Standard, A Pop-up, B Standard, B Pop-up, or C provided in Section 24.1.
19.3. The amount of each pension having an effective date prior to January 2, 1988 shall be redetermined and the redetermined amount shall be the basis of pension payments from and after June 1, 1988. The amount of the redetermined pension provided in this section, shall be equal to the base amount of the pension multiplied by 80 percent of the average of the monthly consumer price indexes for calendar year 1987 and divided by the average of the monthly consumer price indexes for the calendar year containing the effective date of the pension. The base amount of a pension is the amount of pension that would have been paid for the month of June 1988 in the absence of all prior redeterminations. The effective date of a survival pension being paid the beneficiary of a deceased retirant who elected an optional form of payment provided in Section 24.1 shall be the effective date of the retirant’s pension. Consumer Price Index means the Consumer Price for Urban Wage Earners as published by the United States Department of Labor. The minimum amount of redetermined pension shall be the greater of 101 percent of the amount of pension that would be payable for the month of June 1988 in the absence of the redetermination provided by this section and $1,200 annually. Additional pension amounts payable pursuant to the redetermination provided by this section shall be financed in part by the positive difference between the Pension Reserve Fund and retired life liabilities which were effective prior to the redetermination.
19.4. A normal, voluntary or disability pension shall commence the first day of the month following retirement. A survivor pension shall commence the first day of the month following the date of the death resulting in the pension.
19.5. Termination of payment of a pension shall occur at the end of the month in which the event causing termination occurs. Payment shall be made for the full month of termination.
19.6. Tax equity adjustment. Any member of the City of Phoenix Employees’ Retirement Plan who has retired prior to January 1, 1989, shall receive a 3% increase in benefits as a tax equity adjustment effective as of January 1, 1989. Any member retiring between January 1, 1989 and January 1, 1990, shall receive a 3% increase in benefits as a tax equity adjustment effective upon their date of retirement.
19.7.
a. Effective January 2, 2000, notwithstanding any other provision of the Charter, all retirees and surviving option beneficiaries pursuant to Sections 24 and 25.2(a), with 15 or more years of credited service shall receive a pension of at least $500.00 per month.
b. Effective January 2, 2000, notwithstanding any other provision of the Charter, all retirees and surviving option beneficiaries pursuant to Sections 24 and 25.2(a), with less than 15 years of credited service shall receive a pension of at least $250.00 per month.
c. Effective for retirements on or after July 1, 2013, this Section 19.7 shall apply only to Tier 1 Members and their beneficiaries.
(Election of 11-13-1973; election of 10-6-1987; election of 10-3-1989; election of 9-7-1999; election of 3-12-2013, eff. 6-17-2013; election of 8-25-2015, eff. 10-22-2015)