Retirement Frequently Asked Questions

• When can I submit an intent to retire?
• For the best transition from active employment status to retirement status, please submit your intent to retire at least 30 days prior to your retirement date. The last day of the month is the best day to retire. Benefits are effective the first day of the following month and paid on the last business day of the month.
• When am I eligible to retire?
• Members of the Pension Plan must meet both age and service requirement to qualify for retirement.
  Normal Retirement: Age 65 with 5 years of service if hired before 7/1/2012 or Age 65 with 10 years if hired after on or after 7/1/2012.
  Early Retirement – General Government: Age 55 with 15 years of service.
  Full Benefit Retirement – Public Safety: Age 55 with 25 years of service.
  Early Retirement – Public Safety: Age 50 with 20 years of service.
  Vested Retirement: Must complete 5 years of service if hired prior to 7/1/2012 or 10 years of service if hired on or after 7/1/2012. Benefits payable at 65.
  Disability Retirement: No age or service requirement. Must be certified disabled by Social Security Administration. Less than 64.5 years of age.
• Is participation in the City's pension plan mandatory?
• Yes. You are required to become a member of the City's Pension Plan on your first day of employment as a full-time employee in an approved, budgeted position.
• How do I obtain an estimate of my retirement benefit?
• You may obtain a benefit estimate by enrolling in MemberDirect. MemberDirect is the pension self-service portal where you can complete pension estimates.
  MemberDirect Portal enroll and login
• What happens to my pension if I quit my job but do not retire?
• If your employment with the City ends before you are eligible for normal or early retirement benefits, you have earned a nonforfeitable right to receive benefits at a future date when you reach retirement age. This is known as being "vested".
• What happens to the Employee contributions to the Pension Plan?
• The Employee as well as the Employer contributions becomes a part of the Pension Fund. At retirement a certain portion of the employee contribution is not taxable. That amount is prorated over a fixed period of time usually twenty or thirty years and will appear on your 1099R. Non-vested employees are entitled to a refund of their of pension contributions upon separation of employment.
• Will I still have life insurance when I retire?
• At retirement, your life insurance converts to a death benefit administered by the City. The life insurance amount cuts in half and it reduces by 10% of the original amount each year until it reaches the minimum of $5,000.
• Can I continue my current payroll deductions/benefits?
• Yes. You may continue your medical, dental, vision, individual AFLAC polices as well as other miscellaneous deductions.
• Will I have to pay taxes on my retirement benefit?
• Yes. Your retirement benefit is subject to federal and state taxes. FICA and Medicare taxes are no longer applicable.
• Will I continue to receive a W2 form at the end of each year to file my taxes?
• Yes and No. You will receive a W2 and 1099R for the year that you retire. Thereafter, you will only receive a 1099R form which is used for reporting pension, annuities and death benefits.
• After I retire, can I change the payment option I selected?
• No, you cannot change your payment option; this is an irrevocable decision that you make upon retirement. Please be advised that you are given a 30-day grace period from the date you select your form of benefit payment option to make a change and select another benefit payment option. This provides you an opportunity to consult with family and friends and select another benefit payment option if you choose. Should you change your benefit payment option in the allowed 30-day grace period this will also change the effective start date of your retirement to a later date.
• Can I change my beneficiary designation for my pension after retirement?
• No. You cannot change your beneficiary under any circumstances if you choose a joint and survivor option. If you choose a single life income or one of the period certain options, you can change your beneficiary at any time. You can also change the beneficiary of your death benefit.
• What happens if my spouse is my beneficiary and I get divorced?
• If you choose a joint and survivor option, upon your death, payment would be made to your spouse named at the time of your retirement. If you choose a life only or one of the period certain options, you may change your beneficiary.
• What happens if my spouse is my beneficiary and my spouse pre-decease me?
• If your spouse dies before you and you selected a Joint & Survivor option, your benefit will automatically revert to the Single Life Income payment option. If your spouse dies before you and you select single life income or one of the period certain options, you need to complete a beneficiary change.
• After retirement, can I return to work at CCG?
• If you are retired and receiving benefit payments and return to work with the City in a full-time position, the pension benefit payments will cease. Depending on your length of service, you may accrue additional benefits during your period of re-employment, depending on your length of service. Retirees may work for CCG on a part-time basis and continue to receive their pension benefit.
• What is the Drop Plan?
• DROP (Deferred Retirement Option Plan) is a form of retirement benefit that allows an eligible employee to retire for pension purposes, but then to continue working and earning a salary while accumulating a "nest-egg", of up to three years of pension benefits that is payable in a lump sum, direct rollover, or a combined partial lump sum payment and rollover. DROP participants may elect to suspend their DROP participation and extend their full time employment with the CCG for up to three years. If you meet the requirements for eligibility, the DROP gives you another benefit option that you may choose upon retirement. You must decide whether the DROP election is in your best interest.
• What is the DROP Suspension Period?
• DROP participants may elect to suspend their DROP participation and extend their full time employment with the CCG for up to three years. This election must be made more than sixty days in advance of the end of their selected DROP participation period. Upon election to suspend their DROP participation, the member's pension benefit shall remain frozen and the Member shall cease to receive any deposits to their DROP account except interest on amounts already in the account.