The Defined Benefit Plan is a contributory retirement plan that pays a monthly benefit at retirement based on your age, years of creditable service and your average final compensation while you are employed with the City of Richmond. The contribution rate for police officers and firefighters is 1.5 percent of creditable compensation each pay period.
Benefits of the Defined Benefit Plan are based on a formula that includes your average final compensation, years of service and a multiplier. The average final compensation is the average annual creditable compensation of a member during the member's thirty-six (36) consecutive months of creditable service in which such compensation was at its greatest amount. The formula for sworn firefighters and police officers has a multiplier of 1.65 percent and the formula's maximum number of years of service is thirty-five (35). In addition, the formula for firefighters and police officers includes a pre-65 supplement of .75 percent, up to a maximum of twenty-five (25) years of service.
If an Early Service Reduction (ESR) factor is applicable, the ESR is 5 percent per year up to your normal retirement age of 60 or years of service for unreduced retirement benefits (25 years for firefighters or police officers), whichever is smaller.
The City of Richmond contributes an amount each year that varies according to calculations by the System's actuary. The City's contributions are invested by outside investment firms with the primary objective being to ensure the security, stability and continued growth of assets for members' future benefits. The City Code requires that the plan be maintained on an actuarially sound basis.
Use the Online Benefit Calculator to calculate an estimate of your retirement benefit.
Defined Benefit Plan - Enhanced Option
The Enhanced Defined Benefit Option, like the Defined Benefit Plan, pays a monthly benefit at retirement based on your age, years of creditable service and your average final compensation while you are employed with the City. However, you are required to make additional contributions of 3.95 percent of your creditable compensation each pay period until you terminate employment or retire in order to receive the benefit of the enhanced option.
For sworn firefighters and police officers, the enhanced option allows eligibility for unreduced early service retirement upon the completion of twenty (20) years of creditable service, regardless of age.
You may also use the Online Benefit Calculator to calculate an estimate of your retirement benefit under the Enhanced Option of the Defined Benefit Plan.
If you elected the enhanced option, you must make the required contributions until you retire or terminate employment with the City. The 3.95 percent contribution must be made for a minimum of three years and will increase each time you receive a pay increase.
If, however, you elected the enhanced option and do not become vested or make the required minimum contributions, your contributions will be refunded to you by the System.