As we all know, the D.P.O.A. leadership turned down the citys last offer and we are now facing the cram down. In an effort to clarify the many rumors and misconceptions you will find the actual cram down terms listed below. 1. Benefit Formula- The Final Average Compensation will be the average base compensation over last 10 years (no sick time or overtime,etc) 2. Retirement Eligibility- The retirement requirement is 25 years of service AND 52 years of age (no transition) 3. Vested Benefits- The requirement to vest benefits will remain 10 years with the ability to receive your vested benefits at age 55 4. COLA- There will no COLA for D.P.O.A. 5. DROP- There will be no future payments into DROP (need clarification on actual meaning of this clause) 6.Annuity Savings Fund- There will no future annuity contributions 7. Employee Contribution to Pension- There will be a 6% (8% for new hires)employee contribution with risk shifting steps that could raise that contribution to a maximum of 10% should the new pension plan fall below 90% funded (12% for new hires) 8. Wages- Wages are not addressed in the actual plan of adjustment. The above are the key bullet points of the plan of adjustment as they apply to DPOA members. We will inform you of any changes as they occur. Thank you for your support and patience throughout this long and unprecedented process.
Posted on: Fri, 09 May 2014 22:37:39 +0000
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