RETIREMENT BENEFITS

Philadelphia Code tit. 22, ch. 22-300

in effect

Philadelphia Code § 22-301 Service Retirement Benefits.

§ 22-301. Service Retirement Benefits. (1) Eligibility. 64 (a) Any member of Plan D, Plan J or Plan X who has attained minimum retirement age and, if a member of Plan J, has one (1) or more years of credited service is a vested member of the Retirement System and eligible for service retirement benefits. (b) Subject to the provisions of subsections (1)(c) and (1)(d) below, any member of Plan A, Plan B, Plan L, Plan Y, Plan '10, or Plan 16 who has attained minimum retirement age and has ten (10) or more years of credited service is a vested member of the Retirement System and eligible for service retirement benefits. 65 (c) (.1) After the effective date of this Title (January 13, 1999), members of Plan A, Plan B, Plan Y or Plan '10 who are both exempt from civil service and not represented by a union and who are employed after the effective date of this Title, shall vest their retirement benefits upon attaining five (5) years of credited service. During such vesting period, such employees shall each contribute, in addition to the employee contribution as determined in Section 22-902, a proportionate contribution equal to one hundred percent (100%) of the member's share of the aggregate normal cost of the additional benefit, over the cost of 10-year vesting, afforded by such earlier vesting period. 66 (.2) Any members of Plan A, Plan B or Plan Y who are both exempt from civil service and not represented by a union and who are currently employed on the day immediately preceding the effective date of this Title may elect to vest their retirement benefits upon attaining five (5) years of credited service. Such election shall be irrevocable and must be made in writing on forms provided by the Board and filed with the Board within one hundred and eighty (180) days after the effective date of this Title. Such employees who make an election for a five (5) year vesting period shall each be charged for the additional benefit afforded by such earlier vesting period a proportionate contribution equal to one hundred percent (100%) of the member's share of the aggregate normal cost of the additional benefit, over the cost of 10-year vesting, afforded by such earlier vesting period. 67 (.3) After the effective date of this Title (January 13, 1999), members of Plan A, Plan B, Plan Y or Plan '10 who are both exempt from civil service and not represented by a union and who have prior City service and are reemployed after the effective date of this Title may elect to vest their retirement benefits upon attaining five (5) years of credited service. Such election shall be irrevocable and must be made in writing on forms provided by the Board and filed with the Board within one hundred and eighty (180) days following either the date of the member's reemployment or the effective date of the ordinance adding this subsection, whichever is later. Such employees who make an election for a five (5) year vesting period shall each be charged for the additional benefit afforded by such earlier vesting period a proportionate contribution equal to one hundred percent (100%) of the member's share of the aggregate normal cost of the additional benefit, over the cost of 10-year vesting, afforded by such earlier vesting period. 68 (.4) Any members of Plan A, Plan B or Plan Y who currently hold positions (both exempt from civil service and not represented by a union) that would have made them eligible for 5-year vesting under subsection (c)(.2) above if they had held that position on the day immediately preceding the effective date of this Title (January 13, 1999) and who were currently employed on the day immediately preceding the effective date of this Title but who were not in such an eligible position at the time and who subsequently transferred positions without any break in service may elect to vest their retirement benefits upon attaining five (5) years of credited service. Such election shall be irrevocable and must be made in writing on forms provided by the Board and filed with the Board within one hundred and eighty (180) days after the effective date of the amending ordinance adding this subsection. 69 (.5) Municipal employee members of Plan 16 who are both not in the civil service and not represented by a union shall vest their retirement benefits upon attaining seven (7) years of credited service. During such vesting period, such employees shall each contribute, in addition to the employee contribution as determined in Section 22-902, a proportionate contribution equal to one hundred percent (100%) of the member's share of the aggregate normal cost of the additional benefit, over the cost of 10-year vesting, afforded by such earlier vesting period. 70 (d) (.1) After the effective date of this Title (January 13, 1999), members of Plan L and elected official members of Plan '10 who take office after the effective date of this Title shall vest their retirement benefits upon attaining credited service which shall be the lesser of two full terms in their elected office or eight (8) years. During such vesting period, such elected officials shall each contribute, in addition to the employee contribution as determined in Section 22-902, a proportionate contribution equal to one hundred percent (100%) of the member's share of the aggregate normal cost of the additional benefit, over the cost of 10-year vesting, afforded by such earlier vesting period. Provided, however, that any such elected officials who, upon taking elected office, have any prior credited City service, shall not be required to vest in less than ten (10) years and pay the additional contributions, but shall have the option to elect to vest their retirement benefits upon attaining the lesser of two full terms in their elected office or eight (8) years, rather than ten (10) years, under the terms and conditions in subsection 22-301(1)(c)(.3) above. 71 (.2) Members of Plan L who are currently holding office on the day immediately preceding the effective date of this Title may elect to vest their retirement benefits upon attaining credited service which shall be the lesser of two full terms in their elected office or eight (8) years. Such election shall be irrevocable and must be made in writing on forms provided by the Board and filed with the Board within one hundred and eighty (180) days after the effective date of this Title. Such elected officials who make an election for such a vesting period shall each be charged for the additional benefit afforded by such earlier vesting period a proportionate contribution equal to one hundred percent (100%) of the member's share of the aggregate normal cost of the additional benefit, over the cost of 10-year vesting, afforded by such earlier vesting period. (e) Payments for charges for additional benefits under subsections (c)(.2) and (d)(.2) above may be made in accordance with Section 22-806 (Installment Payments) of this Title. (f) Notwithstanding the provision under subsections (c)(.2) and (d)(.2) above that the election for 5-year vesting (or other term of less than 10 years) shall be irrevocable, any member of Plan A, Plan B, Plan L or Plan Y who made such an election and paid the increased cost may, upon attaining ten (10) years service credit, elect 10- year vesting. Upon such an election, but not before being fully credited with ten (10) years' service as otherwise provided in this Code, such member shall, upon application to the Board, be refunded the cost paid by the member for the additional benefit of 5-year vesting (or other shortened term), without interest. (g) To qualify as retired, the member must file an application for retirement benefits with the Board and the application must be approved by the Board. (2) Effective date. Service retirement benefits go into effect the day after the effective date of separation from service. (3) Amount and calculation of benefits. Annual service retirement benefits may not exceed the member's average final compensation. Annual service retirement benefits are calculated as follows: (a) For a member of Plan J, two and one-half percent (2.5%) of average final compensation multiplied by the amount of credited service (expressed in years and specified to the day) for the first twenty (20) years of credited service, plus two percent (2%) of average final compensation multiplied by the amount of credited service (expressed in years and specified to the day) in excess of twenty (20) years of credited service; provided, however, that such sum shall not exceed eighty percent (80%) of the member's average final compensation. (b) For a member of Plan D, two and one-half percent (2.5%) of average final compensation multiplied by the amount of credited service (expressed in years and specified to the day). (c) For a member of Plan X, two and one-half percent (2.5%) of average final compensation multiplied by the amount of credited service (expressed in years and specified to the day). (d) For a member of Plan Y or a municipal employee member of Plan 16, two and two-tenths percent (2.2%) of average final compensation multiplied by the amount of credited service (expressed in years and specified to the day) for the first ten (10) years of credited service, plus two percent (2%) of average final compensation multiplied by the amount of credited service (expressed in years and specified to the day) in excess of ten (10) years of credited service. 72 (e) For a member of Plan B, two and two-tenths percent (2.2%) of average final compensation multiplied by the amount of credited service (expressed in years and specified to the day) for the first twenty (20) years of credited service, plus two percent (2%) of average final compensation multiplied by the amount of credited service (expressed in years and specified to the day) in excess of twenty (20) years of credited service. (f) For a member of Plan A, two and two-tenths percent (2.2%) of average final compensation multiplied by the amount of credited service (expressed in years and specified to the day) for the first twenty (20) years of credited service, plus two percent (2%) of average final compensation multiplied by the amount of credited service (expressed in years and specified to the day) in excess of twenty (20) years of credited service. (g) For a member of Plan L, three and one-half percent (3.5%) of average final compensation multiplied by the amount of credited service (expressed in years and specified to the day). (h) For police and fire employee members of Plan '10, one and three-quarters percent (1.75%) of average final compensation multiplied by the member's years of credited service for the first twenty (20) years of credited service. 73 (i) For members of Plan '10 who are municipal employees or elected officials, one and one-quarter percent (1.25%) of average final compensation multiplied by the member's years of credited service for the first twenty (20) years of credited service. 74 (j) Notwithstanding the provisions of subsections (h) and (i) above, the sum of any benefits under Plan '10 plus any benefits to which a member is entitled pursuant to prior membership in another Plan under this Title shall not exceed the member's average final compensation. For purposes of this subsection (j) only, "average final compensation" shall be as defined with respect to the member's prior Plan, as set forth in subsection 22-105(6)(a), (b) or (c), as applicable. 75 (4) Fresh-Start Rules. In no event shall the accrued benefit of any employee who is a member on the last day of the Retirement System year beginning in 1995 be less than the greater of: (a) the member's accrued benefit as of the last day of the plan year beginning in 1995, determined in accordance with the provisions of the Retirement System as in effect on such date, or (b) the member's accrued benefit determined in accordance with the benefit formula in effect on the first day of the Retirement System year beginning in 1996 based upon the member's credited service credited before and after such date. (5) Minimum Service Requirement. No member of Plan J shall be eligible for service retirement benefits unless the member shall have at least one (1) year of credited service with the Retirement System. If a separated member has less than one (1) year of credited service, contributions shall be refunded upon the written request of the member. To the extent that the Retirement System provides other rights, benefits or entitlements to separated employees, such rights, benefits or entitlements shall remain in force and effect. (6) Time of Vesting. A member's time of vesting shall be determined as of the end of the first full pay period following the member's vesting date. (7) Notwithstanding the provisions of subsection 22-301(3), a member of Plan A, Plan X, Plan B, Plan D or a Fire or Police employee member of Plan '10, who has retired or hereafter retires with twenty (20) or more years of credited service, shall receive a retirement benefit of at least one thousand dollars ($1,000) per month. Such minimum monthly payment shall be required only as to the member's initial unadjusted monthly benefit amount, prior to the application of any distribution option or early retirement option, and prior to any division of the benefit as a result of any court order, including a Domestic Relations Order, or an agreement by the member. 76 Notes 64 | Amended, Bill No. 000342 (approved January 23, 2001). Section 2 of Bill No. 000342 reads as follows: "Effective Date. This Ordinance shall be effective retroactively to January 13, 1999, except for amendments to Code Section 22-310, which shall be effective retroactively to June 28, 1999, and except that, as to members of Plan L, any part of this Ordinance that represents an increase or diminishment in the benefit rights of such members shall not apply to an elected official during any term of office to which such official was elected prior to the effective date of this Ordinance, but shall only apply to an elected official during a term of office to which such official was elected after the effective date of this Ordinance." 65 | Amended, Bill No. 100286 (approved June 23, 2010). See note 4 for effective date provisions. Amended, Bill No. 161013 (approved December 9, 2016). 66 | Amended, Bill No. 140205 (approved May 14, 2014). See note 37 for effective date provisions. Amended, Bill No. 161013 (approved December 9, 2016). 67 | Amended, Bill No. 161013 (approved December 9, 2016). 68 | Amended, Bill No. 140205 (approved May 14, 2014). See note 37 for effective date provisions. Amended, Bill No. 161013 (approved December 9, 2016). 69 | Amended, Bill No. 161013 (approved December 9, 2016). 70 | Added, Bill No. 180599-A (approved June 21, 2018). See note 5 for effective date provisions. 71 | Amended, Bill No. 140743 (approved November 14, 2014). See note 28 for effective date provisions. 72 | Amended, Bill No. 161013 (approved December 9, 2016); amended, Bill No. 180599-A (approved June 21, 2018). See note 5 for effective date provisions. 73 | Added, Bill No. 100286 (approved June 23, 2010). See note 4 for effective date provisions. Amended, Bill No. 100780 (approved February 9, 2011). See note 4 for effective date provisions. 74 | Added, Bill No. 110836-A (approved December 21, 2011); amended, Bill No. 161013 (approved December 9, 2016). 75 | Added, Bill No. 100286 (approved June 23, 2010). See note 4 for effective date provisions. Amended, Bill No. 100780 (approved February 9, 2011). See note 4 for effective date provisions. Renumbered and amended, Bill No. 110836-A (approved December 21, 2011). 76 | Added, Bill No. 150234 (approved May 20, 2015), effective June 19, 2015; amended, Bill No. 160074 (approved April 5, 2016), effective May 5, 2016.

Philadelphia Code § 22-302 Separation Retirement Benefits.

§ 22-302. Separation Retirement Benefits. (1) Separation prior to minimum retirement age. Any member who separates from service after ten (10) or more years of credited service, or such lesser vesting period as is authorized by subsection 22-301(1)(c) or (d), but before attaining minimum retirement age, is a vested member of the Retirement System and is entitled to separation retirement benefits, provided that such member has not withdrawn contributions made to the Retirement System. (2) Effective date. Separation retirement benefits begin when the separated member reaches the minimum retirement age specified in the plan applicable to such member. A separated member may apply for optional early retirement benefits according to the provisions of Section 22-303 (Optional Early Retirement Benefits). (3) Calculation of benefits. Separation retirement benefits are calculated in the same manner as service retirement benefits are calculated. For calculations, see Section 22-301 (Service Retirement Benefits). (4) Withdrawal of contributions. Any member who separates from service may withdraw such member's contributions made to the Retirement System, without interest, any time before becoming eligible for retirement benefits. When a member withdraws such contributions, membership in the Retirement System terminates. Upon withdrawal, the former member and his or her beneficiaries and survivors are entitled to no rights or benefits under the Retirement System, except as otherwise provided in this Title and the Regulations of the Board.

Philadelphia Code § 22-303 Optional Early Retirement Benefits.

§ 22-303. Optional Early Retirement Benefits. (1) Eligibility. 77 The following members are eligible for optional early retirement benefits: (a) Any member of Plan J, Plan L, Plan Y, or Plan 16, and any member of Plan '10 who is a municipal employee or an elected official, who is age fifty-two (52) or older and had become a vested member as defined in subsection 22-105(47). 78 (b) Any member of Plan B or Plan D who is age forty (40) or older and had become a vested member as defined in subsection 22-105(47). (c) Any member of Plan A or Plan X who is age forty (40) or older and had become a vested member as defined in subsection 22-105(47). (d) Any member of either Plan A or Plan B who has twenty-five (25) or more years of credited service, regardless of age. (e) Any member of Plan Y or Plan 16, and any member of Plan '10 who is a municipal employee, who has thirty-three (33) or more years of credited service, regardless of age. 79 (f) Any member who has irrevocably elected to participate in the 2021 Aviation Division Early Retirement Window Program as provided in Section 22-313. 80 (2) Effective date. Optional early retirement benefits may go into effect any time between the end of active City service and the month in which the member reaches minimum retirement age. (3) Calculation of amount of benefits. The yearly amount of optional early retirement benefits is the amount of the regular yearly service retirement benefit (calculated in accordance with Section 22-301) reduced by one-half of one percent (0.5%) of the service retirement benefit for each month the member is younger than the minimum retirement age. This reduction does not apply to members who retire under the provisions of subsections 22-303(1)(d), (1)(e), and (1)(f). 81 Notes 77 | Amended, Bill No. 000342 (approved January 23, 2001). Section 2 of Bill No. 000342 reads as follows: "Effective Date. This Ordinance shall be effective retroactively to January 13, 1999, except for amendments to Code Section 22-310, which shall be effective retroactively to June 28, 1999, and except that, as to members of Plan L, any part of this Ordinance that represents an increase or diminishment in the benefit rights of such members shall not apply to an elected official during any term of office to which such official was elected prior to the effective date of this Ordinance, but shall only apply to an elected official during a term of office to which such official was elected after the effective date of this Ordinance." 78 | Amended, Bill No. 161013 (approved December 9, 2016). 79 | Amended, Bill No. 161013 (approved December 9, 2016). 80 | Added, Bill No. 210137 (approved April 14, 2021). Section 2 of Bill No. 210137 provides: "Effective Date. This Ordinance shall be effective immediately with respect to employees not subject to the terms of a collective bargaining agreement. With respect to represented employees subject to a collective bargaining agreement, this Ordinance shall be effective on the date the Director of Finance certifies to the Clerk of Council that the employee's union has agreed to the terms of this Ordinance." 81 | Amended, Bill No. 210137 (approved April 14, 2021). See note 80 for effective date provisions.

Philadelphia Code § 22-304 Minimum Benefit.

§ 22-304. Minimum Benefit. The unmarried surviving spouse or single surviving Life Partner of any retired member of Plan D or Plan X who was married to, or in a Life Partnership with, the member for at least two (2) years prior to the member's retirement and who is not receiving or is not eligible to receive any other benefits from the Retirement System shall receive a minimum pension of two hundred fifty dollars ($250) per month. This pension shall continue until the surviving spouse or surviving Life Partner is no longer single or dies. Notes 82 | Amended, Bill No. 130224 (approved May 8, 2013).

Philadelphia Code § 22-305 Maximum Benefit Limitations.

§ 22-305. Maximum Benefit Limitations. (1) General Limitation. Except as otherwise provided in this Section, the annual retirement benefit payable to any member shall not exceed one hundred sixty thousand dollars ($160,000) or such other limit as may be the maximum permissible amount for the Retirement System year pursuant to Section 415(b) of the Tax Code. (2) Adjustment of Limitations. (a) To the extent the limitations set forth herein may be from time to time adjusted by statutes, regulations or other publications issued by the Internal Revenue Service or successor agency or department, such adjusted amounts shall be substituted for the amounts set forth in this Section, provided that no such adjustment shall reduce a member's accrued benefit unless such adjustment is required to preserve the qualified status of the Retirement System. To the extent that the limitations under this Section become unnecessary by amendment of law, the limitations shall be deemed inoperative under this Title. (b) If a benefit is to be distributed in a form other than a single or straight life annuity or joint and survivor annuity (including any death benefit payable as a survivor's annuity), the actuarial equivalent (using an interest rate, however, not less than the greater of five percent (5%) or the valuation rate adopted by the Board upon recommendation by the Board's actuary) of a single life annuity of such benefit must satisfy the limitations set forth in this Section. With respect to Retirement System years beginning on and after January 1, 1995, the actuarial equivalent for purposes of this Section shall be greater of: (1) the amount determined using the valuation rate adopted by the Board; or (2) the amount determined using the five percent (5%) interest rate. Further adjustments may be made by the Board, as permitted by Section 415 of the Tax Code and the regulations promulgated thereunder, under the appropriate circumstances including, if authorized by ordinance of Council, receipt by the Retirement System of rollover contributions or assets or liabilities transferred from another qualified plan. If the annuity starting date of the member's form of benefit is in a Retirement System year beginning after 2005, the actuarially equivalent straight life annuity pursuant to this Section shall be equal to the greatest of: (1) the annual amount of the straight life annuity commencing at the annuity starting date that has the same actuarial present value as the member's form of benefit, computed using the interest rate and mortality table referenced in the definition of Actuarial equivalent and subsection 22-305(2)(g); (2) the annual amount of the straight life annuity commencing at the annuity starting date that has the same actuarial present value as the member's form of benefit, computed using a five and one-half percent (5.5%) interest rate assumption and the applicable mortality table as defined in subsection 22-305(2)(g); and (3) the annual amount of the straight life annuity commencing at the annuity starting date that has the same actuarial present value as the member's form of benefit, computed using the applicable interest rate under Section 417(e)(3) of the Tax Code and the applicable mortality table as defined in subsection 22-305(2)(g), divided by 1.05. 84 (c) In the event that a member's benefit is to be distributed prior to age 62, the currently effective dollar amount in subsection (1) of this Section shall be actuarially reduced to the actuarial equivalent (using an interest rate, however not less than the greater of five percent (5%) or the valuation rate adopted by the Board upon recommendation of the Board's actuary) of an annual benefit equal to the dollar amount commencing at age 62, in the manner prescribed by Section 415 of the Tax Code. (d) In the event that a member's benefit is to be distributed after age 65, the currently effective dollar amount in subsection (1) of this Section shall be actuarially increased to the actuarial equivalent (using an interest rate, however, not greater than the lesser of five percent (5%) or the valuation rate adopted by the Board upon recommendation by the Board's actuary) of an annual benefit equal to such dollar amount commencing at age 65 in the manner as prescribed by Section 415 of the Tax Code. (e) With regard to any Police Employee, Fire Employee or Sheriff's Department Employee, subsection (c) above shall not serve to reduce the limitation set forth in subsection (1). (f) Any purchase of service on or after August 5, 1997 must satisfy one of the following requirements: (1) the purchase of additional credited service cannot cause the annual retirement benefit payable to the member to exceed the limitation set forth in subsection 22-305(1); or (2) the total contribution made in any plan year for the purchase of service, when combined with other amounts contributed by or on behalf of the member, cannot exceed forty thousand dollars ($40,000) or any other limitation set forth in Section 415(c)(1)(A) of the Tax Code. (g) For purposes of determining any adjustment to limitations as required under this subsection 22-305(2) for Retirement System years beginning on and after January 1, 1997, the mortality table shall be the "applicable mortality table". The applicable mortality table shall be the table prescribed by Section 415(b)(2)(E)(v) of the Tax Code and Rev. Rul. 95-6 and any subsequent statutory or regulatory provisions. (h) Pursuant to Section 415(n)(2)(A) of the Tax Code, any Service credit purchased in accordance with Sections 22-802, 22-803, 22-804, 22-805, 22-809, or 22-810 shall not be taken into account in computing the limitation described in subsection 22-305(1). 85 Notes 83 | Amended, Bill No. 030827 (approved December 31, 2003). 84 | Amended, Bill No. 150235 (approved May 20, 2015), effective July 1, 2006. 85 | Amended, Bill No. 150235 (approved May 20, 2015). Section 2(d) of Bill No. 150235 provides: "Section 22-305(2)(h) is effective for trustee-to-trustee transfers after December 31, 2001." Amended, Bill No. 190132 (approved May 1, 2019).

Philadelphia Code § 22-306 Retirement and Survivorship Benefit Options.

§ 22-306. Retirement and Survivorship Benefit Options. (1) Election of options. 86 Any member may at any time prior to retirement elect in writing one of the following options pursuant to which retirement benefits and survivorship benefits will be paid. Option 1 – The retired member will receive retirement benefits in the form of an annuity for life. If the retired member dies before having received retirement benefits equal to the amount of the retired member's total contributions, the balance of the member's contributions will be paid to the member's designated survivor as a survivorship benefit. Option 2 – The retired member will receive an actuarially reduced retirement benefit in the form of an annuity for life. If the retired member predeceases the member's designated survivor, a survivorship benefit which equals the member's retirement benefit will be paid to the member's designated survivor for the remainder of the survivor's life. Option 2 benefits shall be calculated so that the present value of Option 2 shall equal the present value of Option 1. Option 3 – The retired member will receive an actuarially reduced retirement benefit in the form of an annuity for life. If the retired member predeceases the member's designated survivor, a survivorship benefit which equals one-half (1/2) of the member's retirement benefit will be paid to the member's designated survivor for the remainder of the survivor's life. Option 3 benefits shall be calculated so that the present value of Option 3 shall equal the present value of Option 1. Option 4 – With respect to a member of Plan D, Plan J, Plan A, Plan B or Plan X and police and fire members of Plan '10 only, the retired member will receive retirement benefits in the form of an annuity for life. If the retired member elected this option or dies without having elected any option, one-half of the amount of the member's retirement benefit, without reduction, shall be paid to the member's surviving spouse or surviving Life Partner, provided that they were married or Life Partners at least two (2) years before retirement or the date on which a separated member became eligible to apply for retirement benefits. 87 Option 5 – Under this option, the member shall choose one of Options 1 through 3 (or, if eligible, Option 4), and in addition, the member shall receive a partial lump sum benefit under the provisions of Section 22-312. The member's retirement benefits shall be governed by Section 22-312. This Option shall not be available to a member who at any time has elected to participate in the Deferred Retirement Option Plan under Section 22-310. A member who elected Option 5 and is subsequently rehired shall not, after such rehire, be eligible to elect Option 5 again, nor be eligible to participate in the Deferred Retirement Option Plan. 88 Upon the death of the surviving spouse or surviving Life Partner, or if there is no surviving spouse or surviving Life Partner who qualifies under the previous paragraph, the retirement benefit shall be paid to the dependent children, either natural or adopted, of the deceased member; and to the dependent grandchildren, either natural or adopted, of the deceased member, if the deceased had court ordered or court sanctioned physical and legal custody of the dependent grandchild, until each child or grandchild attains age eighteen (18) or, if any such child or grandchild remains dependent because of physical or mental infirmity, the duration of the infirmity. If there is no eligible child or eligible grandchild, the retirement benefit shall be paid to the dependent parent or parents of the deceased. Upon election of the member at any time during the member's life, any benefit otherwise payable after the member's death to a child or eligible grandchild who remains dependent at the time of the member's death because of physical or mental infirmity may instead be paid to a trust for the benefit of that child or eligible grandchild, so long as the trust meets the following conditions: (a) The beneficiary of the trust shall be irrevocable no later than the date of the election or death of the member, whichever occurs first; (b) The trust must be a valid trust under Pennsylvania law or would be but for the fact that there is no trust corpus; (c) The trust must be irrevocable; (d) The beneficiaries of the trust must be identifiable from the trust instrument; (e) A copy of the trust must be provided to the Pension Board within thirty (30) days of the date of the member's submission of the document designating the trust as a survivor; and (f) In the case of an annual benefit to be paid monthly "for life" under this Ordinance, the determining life shall be the lifetime of the irrevocable beneficiaries of the trust. If there is no surviving spouse, surviving Life Partner, dependent child or eligible grandchild or parent who qualifies, and the member dies before receiving retirement benefits equal to his or her member contributions, the balance shall be paid to the member's beneficiary. (2) Failure to choose option; members of plans not eligible for Option 4. If a member of Plan L, Plan Y, or Plan 16, or a member of Plan '10 who is a municipal employee or an elected official, retires without electing a retirement benefit option among Option 1, Option 2 and Option 3, the member shall receive retirement benefits without actuarial reduction except for early retirement under Section 22-303 (Optional Early Retirement Benefits). Upon the member's death, subject to the provisions of subsection (3), no further benefits will be paid. 89 (3) Failure to designate survivor. When a member of Plan A, Plan B, Plan L, Plan Y, Plan '10, or Plan 16 retires without designating any survivor and then dies, no further benefits will be paid; provided, however, that if such member is survived by a spouse or Life Partner to whom the member had been married or in a Life Partnership two (2) years or more, and with whom the member was either living at the time of death, or had one or more children who are under the age of eighteen (18) at the time of the member's death, the member shall be deemed to have designated such spouse or Life Partner as the survivor under Option 1. 90 (4) Change of option. Until retirement, a member may revoke the election of any option under this Section, and may elect any other option, except that only members of Plan D, Plan J, Plan A, Plan B, or Plan X and police and fire members of Plan '10 may elect Option 4. On retirement, subject to the provisions of Section 22-702 (Designation of Survivors), the last election of any of the foregoing options shall be irrevocable. 91 (5) Effect of designating impermissible survivor. Survivors shall be designated in accordance with the provisions of Section 22-702 (Designation of Survivors). If a member designates a survivor not within a permissible class, such designation shall be invalid and of no effect, and any survivor shall be determined in accordance with the provisions of Section 22-702 (Designation of Survivors). With respect to a member who had elected Option 1, any amount payable upon the death of such member shall be paid to the member's survivors, if any, in accordance with the provisions of Section 22-702. With respect to a member who had elected Option 2 or Option 3, the additional amount that would have been paid to the member during the member's lifetime, if the member had not elected Option 2 or Option 3, shall be paid to the member's survivors, if any, in accordance with the provisions of Section 22-702. (6) Required minimum distribution. In no event may a member elect (or otherwise be entitled to) a form of benefit which is payable over a period that fails to satisfy the required distribution provisions of Section 401(a)(9) of the Tax Code, including the incidental benefit distribution requirements. 92 (7) Death benefits under USERRA. With respect to a death occurring on or after January 1, 2007, if a member dies while performing qualified military service (as defined in Section 414(u) of the Tax Code), the survivors of the member are entitled to any additional benefits (other than benefit accruals relating to the period of qualified military service) provided under the Plan as if the member had resumed and then terminated employment on account of death pursuant to Section 401(a)(37) of the Tax Code. Service credit shall include the period of a deceased member's qualified military service for purposes of determining death benefits under the Plan. This Section shall be construed in accordance with Section 401(a)(37) of the Tax Code, Internal Revenue Service Notice 2010-15 and any superseding/subsequent guidance. 93 Notes 86 | Amended, Bill No. 060244 (approved June 8, 2006); amended, Bill No. 100007 (approved June 23, 2010). 87 | Amended, Bill No. 100286 (approved June 23, 2010). See note 4 for effective date provisions. Amended, Bill No. 100780 (approved February 9, 2011). See note 4 for effective date provisions. Amended, Bill No. 130224 (approved May 8, 2013). 88 | Added, Bill No. 110443 (became law September 15, 2011), effective December 14, 2011; amended, Bill No. 130224 (approved May 8, 2013). 89 | Amended, Bill No. 100007 (approved June 23, 2010); amended, Bill No. 110836-A (approved December 21, 2011); amended, Bill No. 140743 (approved November 14, 2014). See note 28 for effective date provisions. Amended, Bill No. 161013 (approved December 9, 2016). 90 | Amended, Bill No. 100286 (approved June 23, 2010). See note 4 for effective date provisions. Amended, Bill No. 130224 (approved May 8, 2013); amended, Bill No. 161013 (approved December 9, 2016). 91 | Amended, Bill No. 100007 (approved June 23, 2010); amended, Bill No. 100286 (approved June 23, 2010). See note 4 for effective date provisions. Amended, Bill No. 100780 (approved February 9, 2011). See note 4 for effective date provisions. 92 | Amended, Bill No. 150235 (approved May 20, 2015), effective January 1, 1963. 93 | Amended, Bill No. 150235 (approved May 20, 2015). Section (2)(f) of Bill No. 150235 provides: "Section 22-306(7) is effective for deaths occurring on or after January 1, 2007."

Philadelphia Code § 22-307 Payment of Retirement Benefit.

§ 22-307. Payment of Retirement Benefit. (1) Effective date; monthly installments. Retirement benefits granted under the provisions of this Title shall accrue commencing the day following retirement, and shall be payable in equal monthly installments to and including the date of the member's death, and shall not be increased, decreased, revoked or suspended except as otherwise provided in this Title or this Code. Payment of retirement benefits is made at the end of each month and continues for the rest of the retired member's lifetime. When the retired member dies, benefit payments stop unless the member elected or is entitled to a survivorship benefit option pursuant to Section 22-306 (Retirement and Survivor Benefit Options). (2) Remaining sums. When a retired member dies and letters testamentary or of administration have not been taken out on the estate of such retired member, the Board may pay any sums remaining due directly to: (a) the spouse or Life Partner; 94 (b) any person who shall have paid the funeral expenses of the member or to the political subdivision which shall have paid such funeral expenses; or (c) in the event neither (a) nor (b) above applies, then such sum may be applied to any outstanding funeral-related expenses. (3) No payments below specified amount. If the monthly benefit which any retired or disabled member, survivor or beneficiary is or becomes entitled to receive is in an amount less than five dollars ($5.00), the Board shall pay such person the actuarial equivalent of such benefit in a lump sum, and such payment shall satisfy in full the Retirement System's obligation to pay the monthly benefit during the entire lifetime of the retired or disabled member, survivor or beneficiary. No election may be made pursuant to Section 22-306 (Retirement and Survival Benefit Options) which would result in a monthly benefit payable to any member, survivor or beneficiary of less than five dollars ($5.00). (4) Payments to minors or mentally disabled. Payments of benefits to any minor or mentally disabled person may be made to a duly appointed guardian, or natural guardian, a person having custody of or maintaining the minor, a person having custody of or maintaining the mentally disabled person, or any person who has assumed responsibility for the maintenance of the minor or mentally disabled person. "Person" under this subsection shall include an organization or institution. Payment to such person shall discharge the City, the Board and the Retirement System of any obligation with respect to such benefit. (5) Third party claims. Any claim to benefits under this Title made by or on behalf of a person other than the payee designated under this Chapter, and/or any challenge to the Board's determination of the appropriate payee shall be subject to the provisions of 20 Pa. C.S. § 8704. (6) Required beginning date. Notwithstanding any provision of this Title to the contrary, payment of any retirement benefit to which a member is entitled (regardless of the nature of the retirement benefit or the option in which it is payable) shall commence on or before such member's required beginning date. Notes 94 | Amended, Bill No. 130224 (approved May 8, 2013).

Philadelphia Code § 22-308 Suspension of Retirement Benefits.

§ 22-308. Suspension of Retirement Benefits. (1) Retired member's return to service in Plan A, Plan B, Plan L, Plan Y, Plan '10, or Plan 16. If any retired member receiving retirement benefits under the provisions of Plan A, Plan B, Plan L, Plan Y, Plan '10, or Plan 16 returns to the service of the City, either by appointment or election to any position for which the retired member shall thereby become entitled to wages, salary, fees, or other compensation, the member's retirement benefits shall be suspended during the period of such service. 95 (2) Retired member's return to service in Plan D, Plan J or Plan X. If any retired member receiving retirement benefits under the provisions of Plan D, Plan J or Plan X returns to the service of the City or any quasi-public agency with which the Pension Board has an agreement to administer the pension benefits of the employees thereof, pursuant to the Ordinance of March 1, 1963 (1963 Ordinances, p. 148), as amended, either by appointment or election to any position for which he shall thereby become entitled to wages, salary, fees, or other compensation from which deductions will be made for contributions into the Retirement System, the member's retirement benefits shall be suspended during the period of such service. (3) Such suspensions of retirement benefits shall not apply to: (a) service as an election officer, a registrar of voters or as a juror; (b) any beneficiary or survivor other than a member; or (c) non-participating members of boards and commissions as provided for in Section 22-201 (Membership upon Employment) of this Title. Notes 95 | Amended, Bill No. 100286 (approved June 23, 2010). See note 4 for effective date provisions. Amended, Bill No. 161013 (approved December 9, 2016).

Philadelphia Code § 22-309 Application for Benefits.

§ 22-309. Application for Benefits. (1) Qualification. To qualify for any of the benefits provided for in this Chapter, a member, a member's beneficiary, a member's survivor or the administrator of the member's estate must file an application for benefits with the Board and the application must be approved by the Board. (a) Applications for service-connected disability retirement benefits and ordinary disability retirement benefits must be filed with the Board within one (1) year after separation from service with the City. Such application shall be acted upon by the Board promptly upon receipt thereof. Subject to the provisions of Section 22-1203 (Medical Panel), the decision of the Board as to eligibility for service-connected and ordinary disability retirement benefits shall be final and conclusive. (2) Death benefits. If a separated vested member dies before attaining minimum retirement age then the member's designated beneficiary or estate administrator may apply for death benefits. (See Section 22-501. Service- Connected Death and Health Care Benefits, and Section 22-502. Ordinary Death Benefits (Death Benefits).) (3) Incapacity to apply. In the event any member is unable, by reason of any disability, to make application personally for retirement or other benefits established by this Title, such application may be made on behalf of the member by a member's spouse, Life Partner, parent, son, daughter, brother, sister or legal representative. 96 Notes 96 | Amended, Bill No. 130224 (approved May 8, 2013).

Philadelphia Code § 22-310 Deferred Retirement Option Plan (DROP).

§ 22-310. Deferred Retirement Option Plan (DROP). (1) Test DROP. The DROP described in this Section is enacted as a test for a limited duration as provided below, and will not be continued unless the specified conditions are met. It is the intent of Council that the design of this test DROP is such that the impact of the plan will not result in more than an immaterial increase in the City's normal cost of annually funding the Retirement System. Accordingly, this test DROP is subject to the following conditions: (a) This test DROP will be tested for a period of four years. Within 30 days of the fourth anniversary of the effective date of the ordinance that adds this subsection to provide for the test DROP, the Board shall seek an analysis from its actuary as to the experience of the test DROP for the preceding four years. If the Board, based on the report of its actuary, determines that the operation of the DROP, including any accrued liability, resulted in no, or an immaterial, increase in the City's normal cost during the test period, then the DROP will cease to be a "test" DROP, and will continue under the same terms (except those relating to the "test" aspects) indefinitely unless and until further amended by Council. If the Board, based on the report of its actuary, determines that the operation of the DROP, including any accrued liability, resulted in a material increase in the City's normal cost during the test period, then the DROP shall be automatically terminated, except that no member then currently enrolled in the DROP shall be divested of any rights under the DROP. (2) Basic Concept of a DROP. 98 Eligible employees who elect to participate in the DROP make an irrevocable commitment to separate from City service and retire upon ceasing participation in the DROP, which they must do no later than four (4) years after entering the DROP. Such employees remain employees of the City for all other purposes (except that deductions for employee pension contributions cease and the employee no longer accrues additional service credit for City pension) and are not treated as separated from the City during their participation in the DROP. However, the determination of the retirement benefit amount is made and payment begun upon entry into the DROP, except that payments of that benefit are credited to a special DROP account subject to certain conditions, rather than to the employee directly. (a) Extraordinary Extension. 99 The Mayor may determine that an extraordinary circumstance exists which threatens public health, safety and welfare, and where it would be in the City's best overall interests to extend participation, participants in the DROP who are in their fourth year in the program may remain employees of the City for up to one additional year beyond the four (4) year limit under the same terms and conditions of the DROP. (3) Definitions. Definition of certain terms used in this Section can be found in Section 22-105 of this Code. (4) Eligibility. 100 In order to be eligible to participate in this program, a member must be an active employee of the City and be otherwise eligible to retire under Section 22-301 and must have a minimum of ten (10) years of credited service, all as of the DROP entry date. In lieu of separating from employment and commencing receipt of service retirement benefits, any such member may enter into this program ("the DROP") (i) in the case of Police Employees, Fire Employees, members represented by AFSCME, District Council 33 or AFSCME, District Council 47, and members represented by Lodge 5 of the F.O.P. who are employees of the Sheriff's Office or the Register of Wills, on or after the date the member attains his or her "minimum retirement age", as that term is defined in subsection 22-105(25); or (ii) in the case of all other members, on or after the second anniversary of the date the member attains his or her "minimum retirement age", as that term is defined in subsection 22-105(25), provided in either case that the member's DROP entry date shall meet the requirements in subsection 22-310(5)(a) below. For participation in the DROP to be effective, the application must be approved by the Board pursuant to Section 22-309. (a) Eligibility of Elected Officials. No elected official shall be eligible to participate in the DROP, except: (i) this provision shall not affect the DROP eligibility of an elected official who entered the DROP before this subsection became law; and (ii) an official elected to office before September 18, 2009 shall remain eligible to participate in the DROP during such term in office and during any successive term or terms of office to which such official is reelected. 101 (5) Benefit Requirements and Calculation. (a) Except as otherwise provided by this Section, an election to participate in the DROP is irrevocable. The effective date of a member's participation in the DROP shall be the date provided on the member's application, provided that such date shall only be the beginning of a full pay period and shall not be earlier than ninety (90) days nor more than one hundred eighty (180) days after the date the application is filed with the Board nor earlier than the eligibility date set forth in subsection 22-310(4). 102 (b) Credits to a DROP participant's DROP account consist of: (.1) a monthly amount equal to the member's normal accrued monthly service retirement benefit as of the effective date of the member's participation in the DROP; and (.2) interest on the member's DROP account balance compounded monthly. Until January 1, 2012, interest shall be credited at the yield on one year United States Treasury bonds in effect on the date the ordinance adding this sentence to the Code took effect. On January 1, 2012 and each January 1 thereafter, the interest rate shall be recalculated to equal the lesser of: (i) the yield then in effect on one year United States Treasury bonds; or (ii) one-half of the then-effective interest rate used to calculate the earnings of the reserves of the Retirement System, as adopted by the Board under subsection 22-1002(2). 103 (c) Credits to a member's DROP account begin on the effective date of the member's participation in the DROP and continue until the DROP participant separates from active service with the City, provided that such separation must be no later than four (4) years after the DROP entry date. Credits may not be made to a member's DROP account for a period that occurs after the member separates from active service with the City. 104 (d) The DROP accounts shall not be segregated from other assets of the Retirement System. (e) Employee contributions. Upon a member's entry into the DROP, member contributions made to the Retirement System under Section 22-902 on behalf of that member shall cease for duration of the DROP period. (f) Separation and Payment of DROP benefit. A DROP participant who separates from active service with the City (including a layoff or furlough of fifteen or more consecutive days, but not including a layoff or furlough of fewer than fifteen consecutive days) is entitled to receive the member's DROP benefit in a lump sum. In addition, upon the effective date of such separation, the member shall be retired, and becomes eligible to receive a service retirement benefit, in the monthly amount calculated in subsection 22-310(5)(b)(.1) above. 105 (g) Re-hire. There is no return to regular employment from a DROP. Once entering the DROP, the employee is in the DROP until separation from City service, at which point the member is retired. A retiree may be re-hired by the City, subject to the provisions of this Title (see Section 22-204), but no former DROP participant who is rehired by the City may be eligible to again participate in the DROP. A rehired retiree who had not been a former DROP participant may be eligible to enter the DROP if the employee otherwise meets the eligibility requirements of subsection 22-310(4). In such a case, the retirement benefit for purposes of credits to the DROP account shall be determined by reference to Section 22-204 of this Title. 106 (h) Death of a DROP participant. Upon the death of a DROP participant while in the DROP, the member's total DROP account balance at the time of death shall be added to any benefit payable under Chapter 22-500 of this Title and payable to the beneficiary as determined under that Chapter. (i) Ordinary Disability of a DROP participant. DROP participants are not eligible for an ordinary disability retirement under Section 22-402. If a DROP participant becomes disabled and does not meet the requirements for a service-connected disability retirement, that participant shall be terminated from the DROP and separated from the City to begin a service retirement and receive the DROP benefit, as provided in subsection 22-310(5)(f) above. (j) Service-Connected Disability of a DROP participant. If a DROP participant applies for, and the Board grants, a service-connected disability retirement benefit under Section 22-401, the member shall be terminated from the DROP and separated from the City to begin a service-connected disability retirement and receive the DROP benefit, as provided in subsection 22-310(5)(f) above, under the following conditions: (.1) The service-connected disability retirement benefit shall be based on the compensation and service levels as determined at the DROP entry date. (k) Purchase of service. Upon entry into the DROP a member's service level is frozen. Therefore, a DROP participant is not eligible to purchase any service under Chapter 22-800, provided that a DROP participant may complete any installment purchase as provided in subsection 22-806(4). (6) Regulations. The Board shall, by regulation, provide for additional details of implementation and interpretation of this Section. Notes 97 | Amended, Bill No. 990288-A (approved June 28, 1999). 98 | Amended, Bill No. 990555 (approved December 9, 1999). Section 2 of Bill No. 990555 provides that the Ordinance shall take effect retroactively to the effective date of Bill No. 990288-A (approved June 28, 1999). 99 | Added, Bill No. 060506 (approved September 28, 2006); amended, Bill No. 060695 (approved November 16, 2006). 100 | Amended, Bill No. 110443 (became law September 15, 2011), effective December 14, 2011. Section 4 of Bill No. 110443, as amended by Bill No. 161013 (approved December 9, 2016), provides: "This Ordinance (Bill No. 110443) shall take effect ninety (90) days after it becomes law, provided that the amendments to § 22-310 of The Philadelphia Code, as set forth in Section 1 of this Bill No. 110443, shall not apply to any employee who attained eligibility to participate in the Deferred Retirement Option Program under the provisions of § 22-310 as it existed before such amendments took effect, and such employees shall continue to be governed by the provisions of § 22-310 as it existed prior to such amendments; provided, further, that the amendments to Section 22-310(5)(b)(.2), relating to interest on DROP accounts, shall not be effective with respect to members represented by AFSCME District Council 33 or AFSCME District Council 47 until the adoption of the ordinance adding this clause to this Section 4, and shall only apply to members who have not yet attained eligibility to participate in the DROP by such date." Section 4 of Bill No. 161013 provides that the amendments to Section 4 of Bill No. 110443 are effective "[r]etroactive to September 15, 2011, provided that this ordinance shall not in any way affect the benefits of any employee who has separated from employment on or before the date this ordinance is adopted." Amended, Bill No. 161013 (approved December 9, 2016). Section 4 of Bill No. 161013 provides that its amendments to Section 22-310 are effective "[r]etroactive to September 15, 2011, provided that this ordinance shall not establish the right of any member to enter DROP retroactively." Amended, Bill No. 180557-A (approved June 21, 2018). Section 3 of Bill No. 180557-A provides, in part, that the amendments to Section 22-310 are effective immediately, provided that "this Ordinance shall not establish the right of any member to enter DROP retroactively." 101 | Added, Bill No. 100095 (approved March 24, 2010). 102 | Amended, Bill No. 000342 (approved January 23, 2001). Section 2 of Bill No. 000342 reads as follows: "Effective Date. This Ordinance shall be effective retroactively to January 13, 1999, except for amendments to Code Section 22-310, which shall be effective retroactively to June 28, 1999, and except that, as to members of Plan L, any part of this Ordinance that represents an increase or diminishment in the benefit rights of such members shall not apply to an elected official during any term of office to which such official was elected prior to the effective date of this Ordinance, but shall only apply to an elected official during a term of office to which such official was elected after the effective date of this Ordinance."Amended, Bill No. 110443 (became law September 15, 2011), effective December 14, 2011. See note 100 for applicability provisions. Amended, Bill No. 161013 (approved December 9, 2016). See note 100 for effective date provisions. 103 | Amended, Bill No. 110443 (became law September 15, 2011), effective December 14, 2011. See note 100 for applicability provisions. 104 | Amended, Bill No. 990555 (approved December 9, 1999). Section 2 of Bill No. 990555 provides that the Ordinance shall take effect retroactively to the effective date of Bill No. 990288-A (approved June 28, 1999). Amended, Bill No. 000342 (approved January 23, 2001). Section 2 of Bill No. 000342 reads as follows: "Effective Date. This Ordinance shall be effective retroactively to January 13, 1999, except for amendments to Code Section 22-310, which shall be effective retroactively to June 28, 1999, and except that, as to members of Plan L, any part of this Ordinance that represents an increase or diminishment in the benefit rights of such members shall not apply to an elected official during any term of office to which such official was elected prior to the effective date of this Ordinance, but shall only apply to an elected official during a term of office to which such official was elected after the effective date of this Ordinance." 105 | Amended, Bill No. 140206 (approved May 14, 2014). 106 | Amended, Bill No. 000342 (approved January 23, 2001). Section 2 of Bill No. 000342 reads as follows: "Effective Date. This Ordinance shall be effective retroactively to January 13, 1999, except for amendments to Code Section 22-310, which shall be effective retroactively to June 28, 1999, and except that, as to members of Plan L, any part of this Ordinance that represents an increase or diminishment in the benefit rights of such members shall not apply to an elected official during any term of office to which such official was elected prior to the effective date of this Ordinance, but shall only apply to an elected official during a term of office to which such official was elected after the effective date of this Ordinance."

Philadelphia Code § 22-311 Cost-of-Living Measures for Retirees, Beneficiaries and Survivors.

§ 22-311. Cost-of-Living Measures for Retirees, Beneficiaries and Survivors. (1) Lump Sum Increases. Each member who, on or before July 1, 1999, is or would be sixty (60) years of age or older and each beneficiary or survivor, of a member who was or would be sixty (60) years of age or older, who is receiving or entitled to receive a retirement benefit under this Ordinance and who, on or before July 1, 1999, will have received or been entitled to receive benefits for at least ten (10) years shall receive two lump sum bonuses in the amount of one thousand dollars ($1,000) plus an additional one hundred dollars ($100) for each full year over ten (10) years that the member, beneficiary or survivor has received or been entitled to receive benefits. The first bonus payment shall be made no later than April 30, 1999. The second bonus payment shall be made on July 15, 2000. For purposes of this Section only, the time during which a deceased member received benefits shall be included in calculating the length of time a survivor has received benefits. Any beneficiary or survivor of a member who was killed or died in the line of duty related to the work environment shall be eligible to receive the two lump sum bonuses, if such death occurred on or before July 1, 1999 regardless of the age of the member at the time of death. In addition, for purposes of determining eligibility, any member, beneficiary or survivor who does not meet the above eligibility criteria as of July 1, 1999 but who would meet the said criteria as of July 1, 2000, such member, beneficiary or survivor is eligible only to receive the lump sum bonus payment to be made on July 15, 2000. (2) Pension Adjustment Fund. (a) On July 1, 1999 the Board of Pensions and Retirement (the "Board") shall establish a Pension Adjustment Fund. Effective June 30, 2000 and for each fiscal year thereafter, the Board shall determine whether there are excess earnings available to be credited to the Pension Adjustment Fund pursuant to the provisions of subsection (3). The Board's determination shall be based upon the actuary's certification of the Pension Fund's prior fiscal year earnings, using the adjusted market value of the Pension Fund's assets. Available assets earnings shall be credited to the Pension Adjustment Fund as of July 1 of the then current fiscal year. The Board shall maintain (or re-establish and maintain) a Pension Adjustment Fund for each fiscal year pursuant to the requirements of this Section, provided, however, that the portion of the assets attributed to the Pension Adjustment Fund shall not be segregated from the assets of the Pension Fund. The purpose of the Pension Adjustment Fund is for the distribution of benefits as determined by the Board for retirees, beneficiaries or survivors. The Board shall make timely, regular and sufficient distributions from the Pension Adjustment Fund in order to maximize the benefits of retirees, beneficiaries or survivors. After the Board has received the actuarial certification for the fiscal year ending June 30, 2000 and every year thereafter, but not later than six (6) months following the end of every fiscal year, the Board shall develop various plans that the Board shall consider for approval, so as to ensure that if there are any funds available in the Pension Adjustment Fund on or after July 1, 2000, a distribution may be made within six (6) months and without delay in accordance with the provisions of subsection (4). 108 (.1) Definitions. In this subsection the following definitions shall apply: 109 Adjusted market value of assets valuation method. For each fiscal year ending just prior to the annual valuation of the Pension Fund, take the market value at the beginning of that year, recognize cash flows of contributions and benefit payment being made on average in the middle of the year and roll those values forward based on the Pension Fund's assumed rate of return to the end of the fiscal year. This end of year value is called the expected market value. Subtract the expected market value from the actual market value at the end of the fiscal year. To the extent this difference is positive, there is an experienced gain on investments and, if negative, an experienced loss. Once the gain or loss is determined, include one-fifth of that amount in the annual valuation and defer four- fifths of the gain/loss to be recognized in each of the next four (4) fiscal years. Add up all remaining deferred gains and losses over the past five (5) years and subtract them from the market value of assets to get the "adjusted market value of assets valuation method". (3) Credits to Pension Adjustment Fund. For each fiscal year in which the Board establishes, re-establishes or maintains a Pension Adjustment Fund pursuant to this Section, the Board shall credit the Pension Adjustment Fund pursuant to the following parameters: 110 (a) The first one percent (1%) of earnings to the Pension Fund that are above the actuarial assumed earnings rate of the pension system shall remain in the Pension Fund. (b) The Board shall credit the Pension Adjustment Fund with fifty percent (50%) of the excess earnings to the Pension Fund that are between one percent (1%) and six percent (6%) above the actuarial assumed earnings rate. For example, if the assumed earnings rate were nine percent (9%) and the actual earnings rate were ten percent (10%), the Pension Fund would retain all earnings; if the actual earnings rate were between ten percent (10%) and fifteen percent (15%), the Pension Fund would retain fifty percent (50%) of the excess earnings and the Pension Adjustment Fund would be credited with fifty percent (50%) of the excess earnings. (c) All earnings in excess of six percent (6%) of the actuarial assumed earnings rate will remain in the Pension Fund. (d) In determining the amount of credits to be allocated to the Pension Adjustment Fund for any fiscal year, the Board's actuary shall use the adjusted market value of assets valuation method. (4) Distributions from Pension Adjustment Fund. (a) Every year within sixty (60) days of the end of the fiscal year, by majority vote of its members, the Board shall consider whether sufficient funds have accumulated in the Pension Adjustment Fund to support an enhanced benefit distribution (which may include, but is not limited to, a lump sum bonus payment, monthly pension payment increases, ad-hoc cost-of-living adjustments, continuous cost-of-living adjustments or some other form of increase in benefits as determined by the Board) to retirees, their beneficiaries and their survivors, and the Board may, by majority vote of its members, authorize distributions from the Pension Adjustment Fund. The Board shall also review the accumulated assets of the Pension Adjustment Fund at least every three years to assess whether additional distributions may be appropriate. Prior to a determination that a distribution shall be made, the Board shall have an actuarial impact statement provided. No distribution shall be made unless that statement certifies that the Pension Adjustment Fund assets are sufficient to provide the full cost of the proposed benefit adjustment. (.1) Definitions. In this subsection (4)(a) the following definitions shall apply: Ad-hoc cost-of-living adjustment. A single cost-of-living adjustment that increases the retiree's, beneficiary's and survivor's benefit on a perennial basis for life. Continuous cost-of-living adjustment. Multiple cost-of-living adjustments which provide annual increases for retirees, beneficiaries and survivors for life. Lump sum bonus payments. One time payments to retirees, beneficiaries and survivors which do not increase monthly pension payments. (b) The Board shall report, in writing, to City Council, no later than thirty (30) days after the end of the fiscal year, any distributions that have been made or are proposed to be made from the current balance of the Pension Adjustment Fund. If no distributions were made in the previous fiscal year, the Board will explain, in writing, the reasons therefor. Subject to the availability 111 of funds in the Pension Adjustment Fund, if no distributions have been made by no later than eighteen (18) months after the creation of the Pension Adjustment Fund, or any eighteen (18) month anniversary thereafter, and if the Board has not voted on and approved an enhanced 112 benefit distribution plan at that time, the Board shall notify City Council of such inaction, in writing, and explain why no distributions have been made and provide a full financial report on the current balance of the Pension Adjustment Fund. The Council expressly reserves the right to provide at any time, by ordinance, for enhanced 113 benefit distributions from the Pension Adjustment Fund, if the Board fails to provide for any distributions, or if deemed by Council an inadequate distribution, during any period of eighteen (18) consecutive months. The Council shall follow the same procedures as are required of the Board pursuant to this Section before any distributions may be authorized. (c) If in any period of two (2) consecutive fiscal years, the Pension Adjustment Fund does not receive any credits, even though the Pension Fund's rate of return exceeds one percent (1%) above the actuarial assumed earnings rate in each of the two consecutive fiscal years using an adjusted market value of assets valuation methodology, the Board shall make a report, in writing, within thirty (30) days of the end of the two (2) consecutive fiscal year period to City Council to explain these circumstances. City Council reserves the right to make any amendments to the authorizations, directives or provisions of this Ordinance or to take any other action in order to correct this circumstance or any other circumstance, as the Council deems proper. (5) It is the intent of Council that distributions to retirees, their beneficiaries and their survivors through the Pension Adjustment Fund pursuant to this Section should be funded solely from investment returns generated by Pension Fund assets. Nothing in this ordinance is intended to require the City of Philadelphia to make any contributions from the General Fund to support the Pension Adjustment Fund in any way except, by Ordinance of City Council. Notes 107 | Added, Bill No. 990001-A (approved March 3, 1999). Section 3 of Bill No. 990001-A provides: "Review periods. Within sixty (60) days after every sixth anniversary of the establishment of the Pension Adjustment Fund, the Board shall determine whether the authorizations, directives, or provisions of this Ordinance should be amended. If the Board, by a majority vote of its members, determines that amendments are necessary, the board shall provide a written explanation of said amendments and make a recommendation, in writing, to City Council requesting that the amendments be implemented within one (1) year, by Ordinance. The recommendation by the Board shall also include a statement documenting the actuarial impact of any recommended amendments. City Council expressly reserves the right to amend the authorizations, directives and provisions of this Ordinance at any time as it deems necessary. Any amendment initiated by City Council shall be accompanied by a written explanation of said amendment and an actuarial impact statement documenting the impact of any recommended amendment." Section 4 of Bill No. 990001-A provides: "It is the intent of Council that should both this bill and Bill No. 980843 (adopting a new comprehensive pension Ordinance, to be codified as new Title 22 of The Philadelphia Code) become law, the provisions of this Ordinance shall be codified in new Title 22 of The Philadelphia Code. Accordingly, should both bills become law, new Section 131 as added by Section 1 of this Ordinance shall be new Section 22-311 of Title 22 (Section 2 of this Ordinance is superfluous for purposes of Bill No. 980843, because of combined provisions)." Accordingly, subsections 131.1 through 131.5 and any internal references thereto were renumbered as subsections (1) through (5). 108 | Amended, Bill No. 060828 (became law March 22, 2007). Section 2 of Bill No. 060828 provides: "This Ordinance shall apply to credits to be made to the Pension Adjustment Fund pursuant to § 22-311(3) of The Philadelphia Code, as amended by this Ordinance, for fiscal years 2008 and thereafter." 109 | Amended by deleting the definition of "fund basis", Bill No. 060828 (became law March 22, 2007). See note 108 for effective date provisions. 110 | Amended by deleting subsection (e), Bill No. 060828 (became law March 22, 2007). See note 108 for effective date provisions. 111 | Enrolled Bill No. 990001-A read "availablility". 112 | Enrolled Bill No. 990001-A read "enchanced". 113 | Enrolled Bill No. 990001-A read "enchanced".

Philadelphia Code § 22-312 Partial Lump Sum Option.

§ 22-312. Partial Lump Sum Option. (1) Definitions. (a) Partial Lump Sum Beneficiary. An employee who has chosen Option 5 under subsection 22-306(1). (b) Regular Benefit Option. Either Option 1, Option 2, Option 3 or Option 4, as elected by a Partial Lump Sum Beneficiary when he or she elects Option 5. (c) Unadjusted Benefit. The monthly benefit a Partial Lump Sum Beneficiary would have received had he or she chosen the Regular Benefit Option rather than Option 5. (d) Lump Sum Months. A whole number between six and thirty-six, representing the number of months of Unadjusted Benefits a Partial Lump Sum Beneficiary elects to receive as a lump sum benefit upon retirement. A Partial Lump Sum Beneficiary must specify the Lump Sum Months as part of his or her Option 5 election. (e) Partial Lump Sum. The Unadjusted Benefit multiplied by the Lump Sum Months. (2) A Partial Lump Sum Beneficiary shall, upon retirement, receive the Partial Lump Sum and a monthly pension payment which shall be actuarially reduced so that the Partial Lump Sum plus the monthly pension payments are the actuarial equivalent of the Unadjusted Benefit. Notes 114 | Added, Bill No. 110443 (became law September 15, 2011), effective December 14, 2011.

Philadelphia Code § 22-313 2021 Aviation Division Early Retirement Window Program.

§ 22-313. 2021 Aviation Division Early Retirement Window Program. (1) Basic Concept of the 2021 Aviation Division Early Retirement Window Program. Eligible employees, as provided in subsection (3), who irrevocably elect to participate in the 2021 Aviation Division Early Retirement Window Program must retire from service with the City and may receive optional early retirement benefits prior to the applicable minimum retirement age, without reduction, as provided in Section 22-303. (2) Timing of 2021 Aviation Division Early Retirement Window Program Election and Expiration Date. (a) Initial Election. The option to elect to participate in the 2021 Aviation Division Early Retirement Window Program shall be offered to all eligible employees. An eligible employee shall have thirty (30) calendar days to elect to participate in the program, beginning on the date the notice of eligibility is sent by overnight delivery service to such employee. No employee may elect to participate in the program after this 30-day period. (b) Agreement and Consideration Period. All eligible employees who elect to volunteer for the 2021 Aviation Division Early Retirement Window Program shall be provided with a severance agreement and general release. An eligible employee shall have forty-five (45) calendar days to consider, execute, and return the agreement to such eligible employee's hiring authority, and seven (7) calendar days after execution to revoke such eligible employee's acceptance of the agreement. The severance agreement and general release will provide each eligible employee's separation date that will be agreed to by the City and each eligible employee. (c) Irrevocability of Election. The election to participate in the 2021 Aviation Division Early Retirement Window Program cannot be revoked after the 7-day post-acceptance period has passed. (d) 2021 Aviation Division Early Retirement Window Expiration Date. The 2021 Aviation Division Early Retirement Window Program described in this Section 22-313 is enacted for a limited duration and shall not be continued thereafter. Notwithstanding any other provision in this Section, no eligible employee may elect to participate in the 2021 Aviation Division Early Retirement Window after the earlier of (.1) the time period provided in subsection (2)(a) ("Initial Election"), or (.2) ninety (90) days from the date the ordinance adding this Section 22-313 becomes law. (3) Eligibility. (a) Eligible Employees. In order to be eligible to elect to participate in the 2021 Aviation Division Early Retirement Window Program, an employee must, as of March 31, 2021, be a vested member and within five (5) years of such member's minimum retirement age with respect to the member's plan; and must be actively employed either: (.1) as an employee in the City Department of Commerce, Aviation Division; or (.2) as an employee in one of the following offices or departments, who reports primarily and on a daily basis to the Chief Executive Officer of the Philadelphia International Airport, whether directly or through a chain of command within the Aviation Division: Managing Director's Office, Personnel Department, Procurement Department, or Office of Innovation and Technology. (b) Ineligible Employees. For the avoidance of doubt, active employees not identified in subsection (3)(a) above, who perform services at, or for, the Philadelphia International Airport, are not eligible for the 2021 Aviation Division Early Retirement Window Program whether or not the employee is compensated, in whole or in part, by City funds appropriated to the Philadelphia International Airport. Such ineligible employees include, but are not limited to, active employees in the Law Department, Police Department, Fire Department, Office of Fleet Management, Office of Sustainability, Department of Labor, or Department of Commerce who are not assigned to the Aviation Division. Notes 115 | Added, Bill No. 210137 (approved April 14, 2021). See note 80 for effective date provisions.

Source: City of Philadelphia, The Philadelphia Code and Home Rule Charter (American Legal Publishing, codelibrary.amlegal.com)URL: https://codelibrary.amlegal.com/codes/philadelphia/latest/philadelphia_pa/0-0-0-302806Fetched: 10/27/2026