Pension administration

Pension Meeting Schedule

On-Line Pension Administration Forms

On September 14th, the Mayor signed the ordinances approved by City Council that bring about needed changes to the City’s pension funds, “2005 Amendments”.

General Employees Pension Plan (Defined Benefit):

10 year vesting
An increase in the multiplier from 2.0 to 2.5 for each year of service
Adoption of a “30 and out” provision (This allows employees with 30 years of service or more to retire now with no age penalty or age adjustment)
80% (average of three last year’s salary or three highest year’s salary) cap on the pension calculation

During November, and through departmental human resource personnel, new enrollment cards will be distributed to all members of the Defined Benefit Plan. Each member will be required to either elect to join the new plan or decline to join the new plan.

General Employees Defined Contribution Plan (applies to non-uniformed employees hired after January 1, 2001):

All employees pay grade 17(*) or less and all Classified employees (employees eligible for overtime) will have an opportunity to move from the Defined Contribution Plan to the Defined Benefit Plan.

(*) Pending legislation.

The services of an actuary is in the process of being obtained to determine an estimation of the employee’s benefit under both plans. Once this information is received, all affected employees will be contacted to discuss their options. The plan is to have this done before the end of the year.

Firefighters Pension Plan:

10 year vesting
An increase in the multiplier to 3.0 for all years of service
Adoption of a “30 and out” provision (This allows employees with 30 years of service or more to retire now with no age penalty or age adjustment)
80% (of salary) cap on the pension calculation

Please contact Chiquita Bradley, ASI, at 770-934-3953, ext 1215, for details.

For Police Officers, the change is:

10 year vesting

Please contact Chiquita Bradley, ASI, at 770-934-3953, ext 1215, for details.

Because of the 80% cap, all members of the General Employees and Firefighters Pension Funds must elect to be covered by the amendments or to decline to be covered by the amendments. Since the only change to the Police Officer’s Pension Fund is the 10 year vesting, Police Officers will not have to elect or decline.

For General Employees, this open enrollment will be handled by the City’s Pension Office and will be done in three phases:

Phase 1 – Employees who are eligible for the 30 and out now and wish to take advantage of that provision and retire within the next 2-3 months

Re-enrollment forms are available from the Finance Department, 11^th floor, City Hall Tower and the Pension Office, 1st floor, City Hall Atrium. In addition, you may contact Ray Zies, Controller, at rzies@atlantaga.gov for an electronic copy.
Take the completed form to your departmental Human Resource Office for processing.

Phase 2 – Employees who are currently in the General Employees Pension Plan and want to take advantage of the 2005 amendments noted above:

Re-enrollment cards will be distributed with paychecks the middle of November.
Individual departmental human resource personnel will collect the cards and forward them to the Pension Office when all cards have been returned.

Phase 3 – Employees currently in the Defined Contribution Pension Plan (DC) and want to move to the Defined Benefit Pension Plan (DB) to take advantage of the 2005 Amendments noted above :

Employees who are eligible for overtime (classified) and all employees Pay Grade 17 and below will be offered a one-time opportunity to move from the DC plan to the DB plan.
An actuary will prepare an estimate of the employee’s retirement benefits under the DC plan and the DB plan (This is estimated to take 3-4 weeks).
Once that actuarial estimate is prepared, each employee eligible will be contacted and his/her estimate will be discussed with them.
Along with that estimate, the employee will receive an enrollment card that will allow them to move to the DB Plan or stay in the DC Plan.

Frequently Asked Questions

Can I walk into the Pension Office and get a pension estimate?

How many estimates can I get a year?

If I don’t move now, will I get another chance in the future?

Are the age penalty and the age adjustment still in effect?

What pension plan am I in?

Are we still eligible for insurance if we move to the new plan (2005 Amendment)?

If I am vested in the Defined Benefit Plan, can I leave before I am age 60 and still be eligible for a retirement at age 60?

If I am not currently enrolled in the City’s Medical Insurance Plan, can I still enroll in the retirees Medical Insurance when I retire?

What’s the difference between the Defined Benefit Plan and the Defined Contribution Plan?

Can I use my unused sick leave to add to my years of service to take advantage of the 30 and out?

If I move to the Defined Benefit plan from the Defined Contribution plan because I am currently pay grade is 17 and in the future I get a promotion will I be required to move back to the Defined Contribution plan?

1. ANSWER
No, the volume of estimate requests is too great. You should request a pension estimate in writing and include your relevant information. A Pension Office representative will contact you to set up an appointment to come in and discuss your estimate. (back to FAQs)

2. ANSWER
We are asking that you limit your requests to twice a year. Your pension estimate does not change materially during the year.(back to FAQs)

3. ANSWER
No, once this open enrollment is closed, you will not get another chance. (back to FAQs)

4. ANSWER
Unless you are eligible for the 30 and out provision in the General Employees Pension Plan, the .025% age adjustment is still in effect for every month the employee is under the normal retirement age of 60. There is an additional .025% age penalty for every month for the first five years the employee is under 60. (back to FAQs)

5. ANSWER
Generally speaking, if you started after July 1, 2001, you are in the Defined Contribution Plan. Otherwise, you are in the Defined Benefit Plan. An exception is unless you started before July 1, 2001 and opted to move into the Defined Contribution plan in late 2001 and early 2002 when City Council provided a one-time opportunity to change plans.

If you are in the Defined Benefit plan, then you are either covered by the 1962 Amendment, the 1978 Amendment or the 1986 Amendment. If you do not know, which Amendment you are under, you should contact the Pension Office. (back to FAQs)

6. ANSWER
If you are an active employee in the Defined Benefit Plan when you retire you are eligible for medical insurance. Your contribution will be the same as if you are an active employee. As insurance premiums increase, your contribution will increase. (back to FAQs)

7. ANSWER
If you do not withdraw your contributions, with either the 10 year vesting in the 2005 amendment for the General Employees Pension Plan or the 15 year vesting in the old plan, you can defer your retirement until you are 60 if you want to leave before age 60 and don’t want to pay the age adjustment and age penalty. However, you are not eligible for the medical insurance. (back to FAQs)

8. ANSWER
No, you must be a member of the City’s Medical Insurance Plan as an active employee to be eligible for the retiree medical insurance.(back to FAQs)

9. ANSWER
Under the Defined Benefit Plan, you are guaranteed a pension check for the rest of your life based on a formula that multiplies the average of your last three years salary (or highest three year’s salary) times your years of service times the multiplier (.02 in the current plan and .025 in the 2005 amendment). You are also eligible for COLA raises approved by the Pension Board.

Under the Defined Contribution Plan, the employee contributes 6% and the City contributes 6%. These contributions are invested at the employee’s discretion. Once the employee retires, whatever is in their account when they retire is what their monthly annuity is based on. When the money in that account is expended the annuity stops.(back to FAQs)

10. ANSWER
No, the Ordinance requires 30 years of actual service to be eligible. Any unused sick leave will be added on to the years of service, but you must have actually worked 30 years to be eligible.(back to FAQs)

11. ANSWER
No, once you elect to move to the Defined Benefit Plan, you will be allowed to stay in the Defined Benefit Plan no matter what your classification or pay grade is.(back to FAQs)