Hired before 7/1/17
(Members accrued benefit as of 7/1/17) + (2.75% x Final Average Salary x Years of Credited Service on/after 7/1/17 < = 20) + (2% x Final Average Salary x Years of Credited Service on/after 7/1/17 > 20)
Final Average Salary:
Highest 78 pay periods
100% of 5-yr smoothed return - 4.75%; min 0%, max 4%. Beginning at age 55 with a 3-yr freeze on COLAs for members under 70 yrs until 2021. COLA for FY 2018 and 2019 = 100% of 5-yr smoothed return - 5%.
Benefit Tier Options:
Forward DROP, 13-yr max. (10-yr max for contribution credit.) Interest credit: 65% x 5-yr compounded avg fund return (min 2.5%); No COLA or contributions credited after 7/1/17. Retro DROP option, 3 year max. PROP option before 7/1/17.
HFRRF retirement benefit after DROP is further increased 2% x initial DROP benefit x years of DROP participation, max 20% increase.