Plan I Summary of Plan Provisions
Plan I became effective as of July 1, 1968.
Enrollment in the Plans is closed for all new police officers and firefighters. In the Spring of 1984, an open enrollment allowed Plan I Members to switch into Plan III.
Credited Service is the total period of regular full-time employment with the Municipality as a police officer or firefighter.
Break in Service
If a Member terminates employment prior to becoming eligible for a retirement benefit and subsequently is reemployed, all Credited Service accumulated prior to the date of termination will be reinstated once the Member makes a contribution to the Plan equal to the amount of the refund paid upon the earlier termination, including interest until the date of repayment.
However, the contribution must be made within two years after reemployment. Membership will resume in the same plan the Member participated in at the time of termination, or the Member may elect to participate in the plan being offered to new Members, unless the Member previously elected not to participate. Benefit levels and entitlements are those in effect upon the date of reemployment.
Average Monthly Compensation
Total compensation during three consecutive calendar years of Credited Service which yield the highest average monthly compensation (total compensation during period divided by number of months included). Compensation means that remuneration paid by the Municipality of Anchorage for personal services rendered during the period considered as credited service.
This includes compensation reported on federal W-2 forms, temporary disability benefits and excludes meal and clothing allowances and annual leave cash-in.
Plan I Members will make contributions not to exceed 6% of compensation. If the plan is determined to be in a significant actuarial surplus position, no Member contributions will be required.
Voluntary Retirement Benefit
Eligibility: The earlier of the completion of 20 years of total Credited Service, or the attainment of age 55 with a minimum of 5 years of Credited Service. Benefit: 2.5% of Average Monthly Compensation times the number of years of Credited Service
A Member who terminates employment before completing five years of Credited Service will receive all of the Member's contributions to the Plan plus interest at the nominal annual rate of 4% compounded bi-weekly. Payment is made upon application or age 62.
A vested Member who terminates employment prior to being eligible for the voluntary retirement benefit may elect one of the following two benefits:
- Withdrawal of all of the Member's contributions to the Plan plus interest at the nominal annual rate of 4% compounded bi-weekly.
- A lifetime benefit beginning at age 55 equaling 2.5% of Average Monthly Compensation times the number of years of total Credited Service.
- Any injury received while performing official duties for the Municipality of Anchorage, or
- Any heart, lung, or respiratory system illnesses occurring before or after retirement, or which renders a Member incapable of performing normal assigned duties. Heart, lung or respiratory system illness or injury shall be construed as an illness contracted or injury received in the performance of official duty.
Benefit: A monthly pension of 66-2/3% of the Member's gross monthly compensation at the time of disability, payable for life or until the Member is capable of resuming similar duty with any police or fire department.
Eligibility: Five years of Credited Service prior to the date of disability.
Definition: Any non-occupational disability which renders a Member incapable of performing the Member's assigned duties. This definition excludes elective surgery not required for the preservation of the Member's health.
Benefit: A monthly pension of 50% of gross compensation at the time of disability, payable for life or until the Member is capable of resuming similar duties with any police or fire department.
Occupational Death Benefit
Definition: The death of an active Member or retired Member caused by an accident occurring during the performance of official duties for the Municipality of Anchorage, or by any heart, lung, or respiratory system illness. Benefit: A monthly pension of 66-2/3% of the Member's monthly compensation, payable as designated by the Member to the surviving spouse or the surviving children until the surviving children reach the age of 18. The Member may designate the portion of the benefit paid to the surviving spouse and the portion paid to surviving children. The surviving spouse is entitled to receive at least 50% of the retirement benefits the Member was entitled to receive at death. In the event the participant makes no designation, then the surviving beneficiaries will receive the benefit in the following priority:
- surviving spouse,
- surviving children under the age of 18,
- disabled children, regardless of age,
- dependent parents,
- dependent siblings under the age of 18.
Non-Occupational Death Benefit
Benefit: A monthly pension of 50% of the Member's monthly compensation payable in the same manner as the occupational death benefit described above. However, in the event of the death of a retired member, the amount of the monthly non-occupational death benefit may not exceed the amount of the monthly retirement benefit the retiree was receiving while alive.
Optional Form of Benefit
Members of Plan I may elect to participate in the Actuarial DROP program when they would otherwise be eligible for normal or early retirement. The DROP period must be between two and five years. DROP participation periods must be in full year increments. For every year served in the DROP, the member may elect to receive five percent (5%) of the monthly pension benefit calculated at the time of retirement in a lump sum form. The lump sum is computed to be actuarially equivalent to the DROP percentage of the member's monthly pension.