Service Retirement Allowance—Traditional Retirement Plan.
Ann Arbor City Code § 1:557
in effect1:557. - Service Retirement Allowance—Traditional Retirement Plan.
(1) Normal Retirement Allowance. Upon Retirement, pursuant to section 1:556(2), a Member shall receive a straight life Normal Retirement Allowance, payable monthly, in whichever of the following amounts applies:
(a) For General City Members, 2.5% of Final Average Compensation multiplied by the number of years of Credited Service and any fraction thereof.
(b) For Firefighter and Police Officer Members, 2.75% of Final Average Compensation multiplied by the number of years of Credited Service and any fraction thereof.
(c) For Dual Retirement Plan Members, 1.25% of Final Average Compensation multiplied by the number of years of Credited Service and any fraction thereof.
If a Retirant dies before receiving straight life Retirement Allowance payments equal to the Member's Accumulated Contributions at the time of retirement, as reduced by an election under section 1:559(2), the difference between said Accumulated Contributions and the aggregate amount of Retirement Allowance paid shall be paid from the pension Reserve Fund to such person or persons as shall have been nominated by written designation filed with the Board. If there has been no such designation, the difference shall be paid to the Member's legal representative. No payment shall be made under this paragraph if the Retirant has elected an alternate form of payment under section 1:559.
(2) Early Retirement Allowance. In the event a Member retires pursuant to section 1:556(1), the Member shall receive the sum of (a) and (b) below:
(a) An immediate single life annuity which shall be the actuarial equivalent of the Member's accumulated contributions in the annuity saving fund at the time of such retirement, plus
(b) A pension:
(i) Which when added to the annuity described in section 1:557(2)(a) above, would provide a retirement allowance equal to the Normal Retirement Allowance described in paragraph (1) of this section.
(ii) Reduced by ⅓ of 1% multiplied by the number of months and fraction of a month in the period from the retirement date to the date the Member would attain eligibility for Normal Retirement under section 1:556(2).
The provisions of section 1:556(2) shall not be applicable to ordinary death benefits provided in section 1:560 or disability benefits provided in section 1:561.
(Ord. No. 16-28, § 1, 1-3-17)
Source: City of Ann Arbor, Michigan, Code (Municode Library, library.municode.com)URL: https://library.municode.com/mi/ann_arbor/codes/code_of_ordinances?nodeId=TITIAD_CH18EMRESY_1_557SEREALRAREPLFetched: 11/8/2026