CAFR - Fairfax County Public Schools

educational employees’ supplementary Retirement system of Fairfax County
Before July 1, 2001, continued from previous page
Post-retirement Increases: On March 31,
most pensions are increased by 3 percent.
These increases are compounded each year.
Pensions of members or beneficiaries who retired
in the immediately preceding calendar year
are increased by 1.489 percent (½ of a year’s
increase).
lifetime level benefit: Members retiring
after July 1, 2004 are eligible for a lifetime level
benefit (LLB) that is calculated by determining
ACTUARIAL seCTIon 66
the annuitized value of the greater of their
accumulated contribution balance or the present
value of the currently provided benefit.
optional Forms of Payment:
Option A — 100% joint and survivor.
Option B — 50% joint and survivor.
Option C — 10 years certain and life.
Option D — Single sum payment not exceeding
member’s accumulated contribution
balance, plus a single life annuity
actuarially reduced from the pension
amount otherwise payable.
Summary of Benefit Provisions
For a Person Becoming a Member July 1, 2001 or Later (ERFC 2001 Members)
Service retirement: Eligibility. A member
may retire any time after reaching the service
retirement date, which is either (i) age 60 with
5 years service or (ii) any age with 30 years of
service.
Service retirement: Amount. For payment
periods during the retired member’s lifetime.
The amount is a lifetime pension equal to
0.8 percent of the 3-year average annual salary
multiplied by years of credited service.
Death-in-Service benefits: An active member
with 5 or more years of service who dies will have
benefits payable to the nominated beneficiary.
The amount is a pension equal to the straight
life amount (0.8 percent of the 3-year average
annual salary multiplied by years of credited
service at date of death), reduced in accordance
with an option A election and payable at age 60.
Beneficiaries may elect to receive benefits before
age 60 if benefits are further reduced as follows:
• an additional reduction of the smaller of
1) ½ of 1 percent for the first 60 months and
4 /10 of 1 percent for each additional month
between the member’s age at the date of
death and age 60, and
2) ½ of 1 percent for the first 60 months and
4 /10 of 1 percent for each additional month
between the member’s service at the date
of death and 30 years.
Deferred retirement: An inactive member
with 5 or more years of service will be entitled
to a pension with payments beginning at age 60,
provided she/he does not withdraw accumulated
member contributions.
The amount is a pension equal to the straight life
amount (0.8 percent of the 3-year average annual
salary multiplied by years of credited service at
termination date), payable at age 60.
Member contributions: Members contribute
4 percent of their salaries. Interest credits of 5
percent are added annually. If a member leaves
covered employment before becoming eligible
to retire, accumulated contributions are returned
upon request.
Post-retirement Increases: On March 31,
most pensions are increased by 3 percent. These
increases are compounded each year. Pensions
of members or beneficiaries who retired in
the immediately preceding calendar year are
increased by 1.489 percent.