Fire Department Pension Fund - New York City

1 fire Department Pension FundSubchapter IISummary Plan DescriptionFIRE Department Pension FUNDSUBCHAPTER II9 METROTECH CENTERBROOKLYN, 11201(718) 999-2300 Dear Member:I am pleased to present to you an updated Summary Plan Description for the FireDepartment Pension fund , Subchapter II. In this Pension Manual, you will finddetailed descriptions of retirement benefits and other valuable informationpertaining to our members. The manual will also be made available to you on theDepartment's Pension Manual exemplifies the Department 's commitment to improvingpension-related services to our Uniformed force. I would like to thank the Bureau of Uniformed Payroll and Pension for their efforts in compiling this manual,furthering our goal to provide our members with the best possible service. In thecurrent fiscal year, we have also increased staffing for the Bureau of UniformedPayroll and Pension to better address your needs and those of the more than 18,000 Uniformed retirees.

2 We will strive to continue to provide the best and most effectiveservice to our ,Nicholas ScoppettaFIRE DEPARTMENT9 METROTECHCENTERBROOKLYN, 11201-3857 NICHOL AS SCOPPETTAFire CommissionerDear Member,The Bureau of Uniformed Payroll and Pension is charged with the mission ofadministering payroll and retirement benefits to its members. The mission includesproviding our members with the most current, accurate information on which criticaldecisions that have lifelong impact are made. As such, it is with great pleasure that Iintroduce to you this Summary Plan Description for the fire Department PensionFund, Subchapter Pension Manual has been updated to include a wealth of new of recently passed legislation such as the Variable Supplement fund (VSF) Drop and Military Buyback are included. A summary of all recently passedlegislation is included in the appendix, as well as a glossary of terms and frequentlyasked questions.

3 Timely updates to the manual will also be made via the Department sintranet. The Bureau of Uniformed Payroll and Pension is dedicated to makingsignificant strides in providing our members with enhanced services in the near would like to thank the staff of the Bureau of Uniformed Payroll and Pension whoworked with me on this project. I would also like to extend my thanks to the UFOA,UFA, Office of the Actuary and the NYC Law Department for their review and input. Yours truly,Mary E. BassoFIRE DEPARTMENT9 METROTECHCENTERBROOKLYN, 11201-3857 MARY E. BASSOD irectorBureau of Uniformed Payroll & PensionRoom 6W-8 fire Department Pension FUND110/01/04 fire Department Pension FUNDSUBCHAPTER II9 METROTECH CENTERBROOKLYN, 11201(718) 999-2300 Nicholas ScoppettaFire CommissionerStephen G. RushAssistant CommissionerMary E. BassoDirectorAlbert ConnollyDeputy DirectorFIRE Department Pension FUNDSUBCHAPTER IIBOARD OF TRUSTEESN icholas ScoppettaFire CommissionerWilliam C.

4 Thompson, E. StarkFinance CommissionerStephen J. CassidyPresident, SlevinVice President, StraubTreasurer, KellyChairperson, J. ViscontiChiefs Rep., GormanCaptains Rep., CarboneLieutenants Rep., Description .. 7 Membership .. 8 Tiers .. 8 Original Plan - Pre-July 1, 1981 Members .. 8 Improved Benefit Plan (IBP) - Post-June 30, 1981 Members .. 8 Summary.. 8 Kingston Law Limitations .. 8 Contributions .. 9 Required Employee Contributions .. 9 Taxation .. 9 Voluntary Employee Contributions .. 950% Indicator .. 9 ITHP Waiver .. 9 How To Reduce Payroll Deductions (138-B Regulation) .. 10 Excess Contributions .. 10 Credited Service .. 11 Allowable fire Service .. 11 Buyback Credit.. 11 Other Credited Service .. 12 Retirement Process .. 13 Service Retirement .. 13 Withdrawal of Service Retirement Application .. 13 Disability Retirement .. 13 Step I: Submission of Application.

5 13 Step II: Review of Application by the 1-B Medical Board .. 14 Step III: Review by the Board of Trustees .. 15 Withdrawal of Disability Retirement Application .. 15 Retirement Procedures for All Retirees.. 16 fire Department Pension FUND310/01/04 Tier I: Service Retirement Allowance .. 17 Original Plan .. 17 Improved benefits Plan .. 17 Tier I: Disability Retirement Allowance .. 19 Ordinary Disability Retirement .. 19 Original Plan.. 19 Improved benefits Plan .. 19 Accidental Disability Retirement .. 20 Original Plan.. 20 Improved benefits Plan .. 20 Tier I: Options .. 21 Maximum Retirement Allowance (No Option) .. 21 Options .. 21 Option 1 .. 21 Option 2 .. 21 Option 3 .. 21 Option 4 .. 21 Pop-Up Option Modifications .. 22 Notes .. 22 Tier I: Survivor benefits .. 23 Death Gamble Benefit .. 23 Accidental (Line-of-Duty) Death Benefit .. 23 Beneficiary Designation .. 24 Tier II: Service Retirement Allowance.

6 25 Original Plan .. 25 Improved benefits Plan .. 25 Tier II: Vesting.. 27 Improved benefits Plan .. 27 Tier II: Disability Retirement Allowance.. 28 Ordinary Disability Retirement .. 28 Original Plan.. 28 Improved benefits Plan .. 28 Accidental Disability Retirement .. 29 Original Plan.. 29 Improved benefits Plan .. 30 fire Department Pension FUND410/01/04 Tier II: Options .. 31 Maximum Retirement Allowance (No Option) .. 31 Options .. 31 Five-Year or Ten-Year Certain .. 31 Option 1 .. 31 Option 2 .. 31 Option 3 .. 31 Option 4 .. 32 Pop-Up Option Modification .. 32 Notes .. 32 Tier II: Survivor benefits .. 33 Ordinary Death Benefit.. 33 Death Gamble Benefit .. 33 Accidental (Line-of-Duty) Death Benefit .. 33 Beneficiary Designation .. 34 Cost-of-Living Adjustment (COLA) .. 35 COLA Offset.. 35 Variable Supplements fund (VSF).. 36 Variable Supplements fund (VSF) DROP .. 36 Pension Payments.

7 37 Partial Payments .. 37 Where Pension Checks Will Be Sent .. 37 Option Selection.. 37 Loans .. 38 Pension Loans at Retirement .. 40 Return to Service after Leaving Employment .. 41 Maintaining Membership Rights .. 41 Miscellaneous .. 41 Taxes .. 42 Transfers .. 43 New york fire Department Life Insurance fund .. 44 fire Department Pension FUND510/01/04 Reemployment of Retirees .. 45 Service Retirees Reemployment in New york Public Service .. 45 Reemployment at Age 65 .. 46 Reemployment Outside of New york Public Service .. 46 Reemployment of Disability Retirees .. 46 Public Benefit Corporations .. 47 Line-of-Duty Death benefits .. 48 city Portion .. 48 State Portion .. 48 One-Time Payments (Tax Free) .. 48 Administrative Line-of-Duty Death .. 49 Additional Information .. 49 APPENDIX A .. 50 Recent Legislation/Updates .. 50 APPENDIX B .. 53 Glossary .. 53 APPENDIX C .. 56 Frequently Asked Questions (FAQs).

8 56 fire Department Pension FUND610/01/04 GENERAL DESCRIPTIONThis booklet summarizes the benefits provided by the fire Department Pension fund , Subchapter 2,for Tier I and Tier II members. Information on the following subjects is presented: Service Retirement benefits Vesting Disability Retirement benefits Death benefits Refund of Employee Contributions Loans Ta x e s Transfers Return to Service Reemployment of RetireesThis summary is as accurate and complete as possible. However, in the event of conflict between thissummary and any applicable law, including, but not limited to, the Administrative Code of the Cityof New york (ACNY), the Retirement and Social Security Law (RSSL), and the rules of the FireDepartment Pension fund , the applicable laws will you have any questions, contact the fire Department Pension Bureau at 9 MetroTech Center, 6thFloor, Brooklyn, New york 11201-3857.

9 You may also contact the Bureau by phone for the following Administration/Operations ..(718) 999-2282 Calculations Unit ..(718) 999-1205 Improved benefits Plan ..(718) 999-2282 Loans ..(718) 999-1198 Pension (718) 999-2327 Pension Accounting ..(718) 999-1190 Reemployment of Retirees ..(718) 999-1211 Life Insurance ..(718) 999-2320 Retirement Counseling ..(718) 999-2324 Prior Service/Buyback ..(718) 999-1201 The fire Department Pension fund , Subchapter II, (the fund ) is a corporation, separate from the fire Department of the city of New york , your employer. All uniformed employees of theDepartment become members of the fund upon Department Pension FUND710/01/04 MEMBERSHIPT iersFirefighters who became members of the fund before July 1, 1973 are Tier I who became members of the fund on or after July 1, 1973 are Tier II Plan - Pre-July 1, 1981 MembersPrior to July 1, 1981, all members of the fund were enrolled in the Original Plan.

10 After the fund was financially restructured in 1981, the Original Plan was closed to new entrants, and the Improved benefits Plan, which covers all firefighters hired on or after July 1, 1981, was adopted. Itprovides some increases in benefits , along with somewhat higher member and city closed to new entrants, the Original Plan continues to cover pre-7/1/81 members whohave not elected to transfer to the Improved benefits Plan. Legislation enacted in 1986 permits suchtransfers in June, July, and August of every benefits Plan (IBP) - Post-June 30, 1981 MembersAll firefighters who become members of the fire Department Pension fund on or after July 1, 1981are covered only by the Improved benefits Plan. Summary Date of MembershipTierApplicable PlanPre-7/1/731 Original or Improved benefits Plan7/1/73-6/30/812 Original or Improved benefits PlanPost-6/30/812 Improved benefits PlanIf your membership date or equated date is between June 17, 1971 and June 30, 1973, you are subject to the limitations on final salary imposed by the Kingston Law.