RETIREMENT BENEFITS

New Orleans City Code ch. 114, art. III, div. 5

in effect

New Orleans City Code § 114-124 Application for retirement.

Sec. 114-124. - Application for retirement. A. A member shall apply to the trustees for his retirement allowance. Such application shall be made not more than 90 and not less than 30 days before his retirement date and shall designate his retirement date, the form in which his retirement allowance shall be paid, his annuitant, if applicable, and such other elections and information as the trustees deem necessary or advisable. Except as may be provided herein, the terms of such application shall be irrevocable as of the date on which a member first receives a distribution of his retirement allowance hereunder. B. The trustees shall process such application as soon as practicable following its receipt and acceptance. If the initial payment of a member's retirement allowance is made after his retirement date, such initial payment shall include any amount in arrears, without liability for interest thereon. (M.C.S., Ord. No. 26460, § 2, 6-18-15)

New Orleans City Code § 114-125 Eligibility for normal retirement.

Sec. 114-125. - Eligibility for normal retirement. For members hired on or before January 1, 2018, a member shall be eligible for "normal retirement" if: (1) He is credited with at least 30 years of creditable service; (2) He has attained age 60 and is credited with not less than ten years of creditable service; (3) He has attained age 65 and is credited with not less than five years of creditable service; or (4) He is credited with not less than 80 points, determined as the sum of his attained age and years of creditable service as of his separation date; for this purpose, a member shall be required to apply all of his accumulated sick leave to the purchase of creditable service hereunder. (M.C.S., Ord. No. 26460, § 2, 6-18-15; M.C.S., Ord. No. 27607, § 1, 12-1-17; M.C.S., Ord. No. 28530, § 1, 10-15-20)

New Orleans City Code § 114-126 Determination of pensionable compensation.

Sec. 114-126. - Determination of pensionable compensation. A member's pensionable compensation shall be determined in accordance with the following: A. If a member separates from service and is later reemployed, his periods of service before and after reemployment may be aggregated for purposes of determining his pensionable compensation. B. In no event shall a member's pensionable compensation for any calendar year exceed the limit then permitted under Tax Code Section 401(a)(17), as the same may be adjusted from time to time. Any change in such limit occurring during a calendar year shall be deemed effective as of the first day of such year. If pensionable compensation is determined with reference to a period of less than 12 months, the limit hereunder shall be prorated by multiplying the dollar limit then in effect by a fraction, the numerator of which is the number of months in such period and the denominator of which is 12. C. In no event shall the annualized pensionable compensation of any member taken into account hereunder be less than such member's compensation permitted to be taken into account under this section, or its equivalent, as of July 1, 1993, provided he was a member of the system as of such date. D. A member's consecutive months of pensionable compensation shall include the furlough period beginning August 1, 2010, and ending December 31, 2010, provided that member contributions and employer contributions are made with respect to such period. Base compensation attributable to such period shall be a member's regular rate of base compensation then in effect but determined without adjustment for such furlough. E. For members who commenced employment after January 1, 2018, in no event shall a member's pensionable compensation for any calendar year exceed $100,000.00, adjusted for inflation as determined by the trustees from time to time. F. For members who commenced employment after January 1, 2018 and are employed on and after January 1, 2021, notwithstanding any provision herein to the contrary, in no event shall such member's pensionable compensation for any calendar year exceed $150,000.00, as the trustees may adjust for inflation from time to time. (M.C.S., Ord. No. 26460, § 2, 6-18-15; M.C.S., Ord. No. 27607, § 1, 12-1-17; M.C.S., Ord. No. 28530, § 2, 10-15-20; M.C.S., Ord. No. 29248, § 1, 11-3-22)

New Orleans City Code § 114-127 Amount of retirement allowance.

Sec. 114-127. - Amount of retirement allowance. A. For each active member who commenced employment before January 1, 2018, the amount of such member's retirement allowance, expressed in the form of a member annuity, shall equal the sum of: (A) 2.5% of such member's pensionable compensation multiplied by such member's creditable service not in excess of 25 years, and (B) 4% of such member's pensionable compensation multiplied by such member's creditable service in excess of 25 years. For this purpose, creditable service with respect to which a member has received a refund shall be disregarded, unless such member has repaid an equivalent amount as determined by the trustees. B. For each active member who commenced employment after January 1, 2018, the amount of such member's retirement allowance, expressed in the form of a member annuity, shall equal 1.9% of such member's pensionable compensation multiplied by such member's creditable service. C. For members who commenced employment after January 1, 2018 and are employed on and after January 1, 2021, notwithstanding any provision herein to the contrary, the amount of such member's retirement allowance, expressed in the form of a member annuity, shall equal 2.5% of such member's pensionable compensation multiplied by such member's creditable service. For this purpose, creditable service for which a member has received a refund shall be disregarded, unless such member has repaid an equivalent amount as determined by the trustees. (M.C.S., Ord. No. 26460, § 2, 6-18-15; M.C.S., Ord. No. 27607, § 1, 12-1-17; M.C.S., Ord. No. 28530, § 3, 10-15-20)

New Orleans City Code § 114-128 Reduction for early payment.

Sec. 114-128. - Reduction for early payment. If a member's retirement allowance commences before he attains age 62, such allowance shall be reduced by three percent for each year by which his retirement date precedes his attainment of such age, provided that no reduction shall be required: A. If the member has at least 30 years of creditable service as of his retirement date; or B. If the member's age and creditable service total at least 80 points as of his separation date. This provision is not applicable for any member who commences employment after January 1, 2018. (M.C.S., Ord. No. 26460, § 2, 6-18-15; M.C.S., Ord. No. 27607, § 1, 12-1-17)

New Orleans City Code § 114-129 Late retirement.

Sec. 114-129. - Late retirement. A member shall be entitled to designate a late retirement date, which may be later than the date or dates determined in accordance with section 114-125 hereof, but shall not be later than April 1st of the calendar year following the later of (A) the year in which the member attains age 70½, or (B) the member's separation date. (M.C.S., Ord. No. 26460, § 2, 6-18-15)

New Orleans City Code § 114-130 Form of retirement allowance.

Sec. 114-130. - Form of retirement allowance. A. A member shall designate the form in which his retirement allowance shall be paid from among the following optional forms of payment, each of which shall be the actuarial equivalent of the other, as follows: 1. "Option One," which shall be an annuity that provides equal monthly payments for the life of a member; provided that if the member shall die before the actuarial value of his member account has been paid, the remainder shall be paid to his beneficiary in the form of a single-sum. 2. "Option Two," which shall be an annuity providing equal monthly payments for the life of the member and the same amount for the life of his annuitant; provided that (i) if the member's annuitant predeceases the member, an annuity determined in accordance with subsection 1 hereof shall thereafter be paid to such surviving member and, if the member dies before the actuarial value of his member account has been distributed, any remainder shall be distributed to the member's beneficiary, (ii) if the member predeceases his annuitant and the annuitant dies before the actuarial value of the member account has been distributed, any remainder shall be distributed to the annuitant's beneficiary, and (iii) if the member's annuitant is not his surviving spouse, any survivor benefit payable hereunder shall not exceed the maximum percentage permitted under Tax Code Section 401(a)(9). 3. "Option Three," which shall be an annuity providing equal monthly payments for the life of the member and one-half of such amount for the life of his annuitant; provided that (i) if the member's annuitant predeceases the member, an annuity determined in accordance with subsection 1 hereof shall thereafter be paid to such surviving member; and, if the member dies before the actuarial value of his member account has been distributed, any remainder shall be distributed to the member's beneficiary, (ii) if the member predeceases his annuitant and the annuitant dies before the actuarial value of the member account has been distributed, any remainder shall be distributed to the annuitant's beneficiary, and (iii) if the member's annuitant is not his surviving spouse, the survivor benefit payable hereunder shall not exceed the maximum percentage permitted under Tax Code Section 401(a)(9). 4. "Option Four," which shall refer to such other form of payment as the trustees may, from time to time, designate, subject to such limitations, terms and conditions as the trustees deem necessary and appropriate. B. If the trustees determine that monthly payment of an annuity is or becomes impracticable on account of its amount, the trustees may direct that such monthly payments be aggregated and paid on an annual, semi-annual or quarterly basis. C. Any amount payable in the form of a single-sum to a beneficiary hereunder shall be paid not later than the last day of the calendar year that contains the fifth anniversary of the date of the member's death. (M.C.S., Ord. No. 26460, § 2, 6-18-15)

New Orleans City Code § 114-131 Minimum retirement allowance.

Sec. 114-131. - Minimum retirement allowance. Notwithstanding any provision of this article to the contrary, in no case shall the value of the member annuity for a member who is credited with at least ten years of creditable service for full-time employment be less than $300.00 each month. (M.C.S., Ord. No. 26460, § 2, 6-18-15)

New Orleans City Code § 114-132 Maximum retirement allowance.

Sec. 114-132. - Maximum retirement allowance. In no case shall the amount of a member annuity hereunder, determined as of a member's retirement date, exceed his annualized pensionable compensation as of such date, except that the foregoing limitation shall not apply: A. To any member whose accrued benefits hereunder were in excess of such amount as of May 7, 1978. B. To any distribution made from a member's DROP account. (M.C.S., Ord. No. 26460, § 2, 6-18-15)

New Orleans City Code § 114-133 Reemployment; suspension of retirement allowance.

Sec. 114-133. - Reemployment; suspension of retirement allowance. If a member retires and receives a retirement allowance hereunder, the payment of such allowance shall be suspended if the member is reemployed by the employer. In such event, payment of his retirement allowance shall again commence after the member again separates from service; such member's periods of creditable service and pensionable compensation shall be recalculated taking into account service and compensation before and after his reemployment. (M.C.S., Ord. No. 26460, § 2, 6-18-15)

New Orleans City Code § 114-134 Tax Code limitation.

Sec. 114-134. - Tax Code limitation. The value of a member's annualized retirement allowance, when expressed in the form of an annual benefit as defined herein, shall not exceed the maximum permissible amount. If the value of a member's annual benefit would exceed such amount, the value of such benefit shall be reduced to the maximum permissible amount. For this purpose, a member's "maximum permissible amount" shall be the dollar limit set forth in Tax Code Section 415(b)(1)(A), as the same may be indexed from time to time under Tax Code Section 415(d), and subject to adjustment as provided herein. A. A member's "annual benefit" shall be the actuarial equivalent of a member's retirement allowance, determined as a single life annuity payable under a plan to which members do not contribute and to which rollover contributions are not made. Such equivalent shall be determined using (1) an interest rate equal to the greater of 5.5%, the rate otherwise specified herein or the rate that provides a benefit of not more than 105% of the benefit derived from the interest rate specified in Tax Code Section 417(e)(3), and (2) the mortality table specified in Tax Code Section 417(e). The value of such annual benefit shall further be determined as follows: 1. The value of such benefit shall not include any after-tax member contributions, which contributions, if any, shall be separately subject to the limitations imposed under Tax Code Section 415(c). 2. The value of such benefit shall include the value of any amount paid by a member to purchase creditable service hereunder, except that: i. Amounts paid for service with the armed forces as contemplated under Tax Code Section 414(n) shall not be included; ii. Any amount transferred from another qualified governmental plan or governmental Tax Code Section 457(b) plan shall not be included; and iii. Reserved. 3. The value of such benefit shall not include any amount attributable to the transfer of service credit hereunder. B. If a member retires before he attains age 62, such member's maximum permissible amount shall be reduced to equal an annual benefit commencing as of such member's retirement date that is the actuarial equivalent of such amount payable at age 62, determined using (1) an interest rate equal to the greater of five percent or the rate otherwise specified herein, and (2) the mortality table determined in accordance with Tax Code Section 417(e). Notwithstanding the foregoing, such adjustment shall not apply to any benefit payable on account of the death or disability of a member. C. If a member retires after he attains age 65, such member's maximum permissible Amount shall be actuarially adjusted to reflect such delayed retirement using (1) an interest rate equal to the lesser of five percent or the rate otherwise specified herein, and (2) the mortality table required under Tax Code Section 417(e). D. If a member is credited with less than ten years of participation in the system, the Maximum Permissible Amount determined hereunder shall be reduced by 1/10 for each year of such participation less than ten. E. Notwithstanding the foregoing, in no event shall the retirement allowance of a member be reduced as provided herein if he is a qualified member. For this purpose, a "qualified member" is a member who commenced participation hereunder prior to January 1, 1990. F. The limitations set forth herein shall not apply to any member if (1) his or her retirement benefit hereunder, including any retirement benefit paid from any other tax-qualified retirement plan maintained by the city or another participating employer hereunder, does not exceed $10,000.00 each year, and (2) no such employer has at any time maintained a defined contribution plan in which such member participated. G. If the maximum permissible amount increases after a member separates from service, the amount of any limitation imposed hereunder shall thereafter take into account such increase. H. If a member retires before January 1, 2007, then notwithstanding any provision herein to the contrary: 1. The value of such member's annual benefit shall not include any amount attributable to the transfer of service or benefits hereunder. 2. Member contributions made in the form of after-tax contributions shall be subject to the limitations on contributions applicable to defined contribution plans imposed under Code Section 415. 3. If such member's retirement allowance includes a rollover hereto, the value of such rollover shall be included in the determination of such member's annual benefit by applying reasonable actuarial assumptions. 4. If such member retires after the attainment of age 65, the maximum permissible amount shall be determined without regard to subsection C hereof. 5. If such member retires before attainment of age 62, the adjustment set forth in subsection B hereof shall not apply. 6. If a member's retirement allowance is payable in a form other than a single life annuity, such allowance shall be expressed as the actuarial equivalent of a single life annuity. I. The terms of this section are to be interpreted and construed in accordance with the provisions of Tax Code Section 415(b) and the regulations promulgated thereunder, the terms of which are incorporated herein by this reference. (M.C.S., Ord. No. 26460, § 2, 6-18-15; M.C.S., Ord. No. 27607, § 1, 12-1-17)

New Orleans City Code § 114-135 Additional payments.

Sec. 114-135. - Additional payments. A. The board may be authorized to retain trust earnings or gains in excess of an average three and one-half percent, which amount may be applied to provide one or more cost-of-living increases or bonuses for members who have retired, in an annual amount not to exceed three percent of each such member's initial retirement allowance multiplied by each year of such member's retirement, provided that the system's actuarial funded ratio is at least 65 percent. Such benefit, if any, may be awarded and paid when funds are available from this source as provided herein, and in the manner and at the time or times determined in the discretion of the trustees. B. Notwithstanding subsection A, the board may be authorized to provide a cost-of-living increase or bonus to help adjust for actual changes in members' cost of living if the city appropriates sufficient funds to fully prefund the increase or bonus described in this subsection in the year the benefit is provided. (M.C.S., Ord. No. 26460, § 2, 6-18-15; M.C.S., Ord. No. 27607, § 1, 12-1-17; M.C.S., Ord. No. 29248, § 1, 11-3-22)

New Orleans City Code § 114-136 Direct rollovers.

Sec. 114-136. - Direct rollovers. A member, his spouse or, effective as of January 1, 2008, his annuitant or other beneficiary, may direct the trustees to roll over any eligible distribution hereunder, subject to the following: A. Rollover shall be made to the plan, account or annuity designated by the member or other distributee. In the case of a member, such plan, account or annuity may be an individual retirement account described in Tax Code Section 408(a), an individual retirement annuity described in Tax Code Section 408(b), an annuity plan described in Tax Code Section 403(a), a qualified trust described in Tax Code Section 401(a), or an eligible governmental plan described in Tax Code Section 457(b). In the case of a rollover made for the benefit of a beneficiary or annuitant or a member's spouse, an eligible retirement plan shall be an individual retirement account or individual retirement annuity. B. No amount shall be eligible for rollover hereunder if it is one of a series of substantially equal periodic payments made not less frequently than annually for the life or life expectancy of the distributee or the joint lives or joint life expectancies of a member and his annuitant or beneficiary, or for a specified period of ten years or more or a required minimum distribution under Tax Code Section 401(a)(9). C. A direct rollover hereunder shall not be required with respect to amounts of less than $200.00. D. The trustees shall furnish to each member, annuitant or beneficiary eligible to direct a rollover hereunder a notice containing the information described in Tax Code Section 402(f), which notice shall be furnished within a reasonable time prior to a distribution eligible for rollover hereunder. (M.C.S., Ord. No. 26460, § 2, 6-18-15)

New Orleans City Code § 114-137 Early or voluntary retirement.

Sec. 114-137. - Early or voluntary retirement. A. A member shall be eligible for early or voluntary retirement as provided herein if all of the following conditions are satisfied: 1. Such member's retirement date is no earlier than October 19, 2020 and no later than December 31, 2020. 2. Such member separates from service no later than the designated retirement date and such member does not return to eligible full-time employment. 3. Such member irrevocably waives participation in DROP. 4. Such member purchases creditable service by the conversion of all accumulated sick leave. 5. Such member agrees to the waiver of certain claims in the form and at the time prescribed by the trustees. B. A member who elects early retirement shall further satisfy the following: 1. Such member shall be credited with at least 15 years of creditable service as the member's designated retirement date, including creditable service purchased by the conversion of annual or sick leave; and 2. Such member shall have accumulated at least 70 points as of the designated retirement date, determined as the sum of the member's attained age and creditable service as of such date. C. A member who elects voluntary retirement shall further be eligible for normal retirement (as defined in section 114-125) as of the member's designated retirement date. D. The retirement allowance of a member who satisfies the conditions set forth herein and timely elects early retirement shall not be subject to reduction for early payment under section 114-128, regardless of the age of such member. E. A member who satisfies the conditions set forth herein and timely elects voluntary retirement shall receive: 1. A 1% increase in the base amount of the annual retirement allowance payable as of such member's retirement date, to be prorated and paid monthly, such increase (a) to be made annually commencing as of January 1, 2022 and (b) to be made during the life of the member and any annuitant. 2. A payment in the amount of $50.00 for each full year of employment, but not less than $1,000.00, which amount shall be paid (a) annually during the ten-year period commencing as of January 1, 2022 and (b) to such member's beneficiary, beneficiaries or annuitant if such member dies prior to the payment of all such amounts. F. A member who satisfies the conditions for voluntary retirement hereunder but has not yet attained age 62 may elect either early or voluntary retirement; there shall be no duplication of benefits hereunder. (M.C.S., Ord. No. 28530, § 4, 10-15-20)

Source: City of New Orleans, Code of Ordinances and Home Rule Charter (Municode Library, library.municode.com)URL: https://library.municode.com/la/new_orleans/codes/code_of_ordinances?nodeId=PTIICO_CH114PE_ARTIIIRESY_DIV5REBEFetched: 10/28/2026