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The City of New Orleans

Mayor Mitchell J. Landrieu

Retirement Options

Maximum

The member is entitled to receive the largest benefit available based on the retirement formula. If the member dies and has not received the total amount of his / her accumulated contributions and interest documented as of the retirement date, the designated beneficiary(ies) will receive the remaining contributions and interest in a lump sum. Monthly retirement payments are structured to deplete the member’s contributions and interest in less than 2 ½ years. Therefore, no funds will normally be available for the beneficiary if the member dies after that time. The member may designate another beneficiary if the previous beneficiary predeceases the member.

Option 1

The member is entitled to receive a retirement allowance payable throughout life, which is slightly less than the maximum amount. If the member dies and has not received the total amount of his / her accumulated contributions and interest documented as of the retirement date, the designated beneficiary(ies) will receive the remaining contributions and interest in a lump sum. Monthly retirement payments are structured to deplete the member’s contributions and interest in approximately 8 – 10 years. Therefore, no funds will normally be available for the beneficiary if the member dies after that time. The member may designate another beneficiary if the previous beneficiary predeceases the member.

Option 2

The member is entitled to receive a reduced retirement allowance payable throughout life. Upon the death of the member, the designated beneficiary will receive the same monthly benefit amount as the member, payable for life. If the beneficiary dies before the member, the monthly benefit amount will increase to the maximum amount the month after NOMERS is notified of the beneficiary’s death. The member will not be allowed to designate another beneficiary under any circumstance.

Option 3

The member is entitled to receive a reduced retirement allowance payable throughout life. Upon the death of the member, the designated beneficiary will receive one-half of the monthly benefit amount payable for life. If the beneficiary dies before the member, the monthly benefit will increase to the maximum amount the month after NOMERS is notified of the beneficiary’s death. The member will not be allowed to designate another beneficiary under any circumstance.

Option 4

The member is entitled to receive a retirement allowance payable for life with some other benefit payable to either the member or the designated beneficiary. The benefit shall be calculated by the Actuary based on the equivalent actuarial value of the member’s retirement allowance. The Board of Trustees must approve this option.

NOTE:

According to Louisiana law, pension benefits, including DROP funds received or accumulated during marriage, are community property. As such, an ex-spouse, regardless of the number of marriages or the length of marriage, may be entitled to a portion of the retirement benefit depending on the spouse’s community property interest. If a member is legally married at any time during his / her employment and chooses a retirement option that does not provide the spouse at least 50 percent of the retirement benefit based on the spouse’s community property interest, the spouse must sign a Spousal Consent to Waive Benefits form.

Things to Consider

Before retiring, members should consider benefits for the long term. Members should consider the advantages and disadvantages of retiring early. Members choosing an early retirement may be granted a retirement allowance that is less than the maximum amount obtainable. However, the member will receive benefits for a longer period of time.

Upon written request, the staff of NOMERS will provide an estimate of retirement benefits to members that are within five years of retirement. Members should expect a response in approximately three (3) to six (6) months from the date of the request.

Members are advised to submit a written request for an estimate of their retirement benefits at least one (1) year prior to the retirement date. The request should include the anticipated retirement date, the spouse’s or beneficiary’s date of birth and the amount of sick and / or annual leave to be converted to retirement credit, if any.

Members should contact their department’s personnel office in order to complete a retirement application. The department’s HR staff will forward the application to NOMERS. Applications will not be accepted more than ninety (90) days or less than thirty (30) days prior to the effective date of retirement.

This booklet contains information based on Chapter 114 of the Code of the City of New Orleans. Every effort has been made to accurately reflect provisions Chapter 114. The provisions of Chapter 114 will prevail when information in this booklet conflicts with chapter 114.

 
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Last updated: 2/26/2013 3:48:43 PM

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