IMPROVEMENTS TO SYSTEM (Last 15 Years)
The PROP Monthly Annuity Deferral program was changed to allow for a minimum of $250 of the retiree monthly annuity to be deferred into the PROP
The City’s contribution rate was increased from 18.25% to 18.63% to fund APRS participation in Texas Proportionate Retirement System.
APRS joined the Texas Proportionate Retirement System. This allowed members with service credit in more than one participating retirement system to be eligible to combine their service credits in order to satisfy the length of service requirements used to determine eligibility for service retirement.
Benefit formula multiplier was increased from 3.0% to 3.2%.
Special Ad hoc increase granted to retirees based on benefit multiplier 3.2% divided by benefit multiplier 3.0%, minus one, and multiplied by 100.
Member contribution rate was increased from 11% to 13%.
Permissive service credit was changed to (1) allow the purchase by a deceased member’s designated beneficiary if there is no surviving spouse and (2) allow the purchase to be based on deferring the actual date when retirement benefits would begin in order to reduce the member’s cost (Deferred Permissive Service)
The retiree death benefit is increased to $10,000 from $7,500
The PROP Monthly Annuity Deferral program was changed to allow for a minimum of $500 of the retiree monthly annuity to be deferred into the PROP
Forward Deferred Retirement Option Plan (FORWARD DROP) provision added for a one-time benefit whereby active police officers can choose to retire, continue working for and drawing a paycheck from APD, while their retirement annuity is deferred into a DROP account on their behalf at the retirement system.
Member contribution rate was increased from 9% to 11%.
A new option was created for retiring and retired members to defer receipt of their monthly annuity in order to defer the taxation of the deferred payments and to have the monthly benefits accumulate for later disbursement and later taxation into a PROP account.
IRS code adopted to allow the retiree death benefit amount of $7,500 to be distributed to beneficiary of retired member as a Tax Free lump sum amount.
Permissive Service Credit provision added, which allows members to purchase at 20 years of service, additional time, minimum of three years service credit needed to retire at normal retirement eligibility (23 years) at actuarially neutral cost to the 'System'.
Provision added for retirement eligibility with unreduced benefits to include members who have 23 years of creditable service excluding pre-membership military service.
Post Retirement Option Plan (PROP) provision added for members who select the Retroactive Deferred Retirement Option Plan (DROP)and instead of receiving a single lump-sum payment, elect to receive partial payments from the member's DROP account for each calendar year, in an amount elected by the member.
Benefit formula multiplier was increased from 2.88% to 3.0%.
Special Ad hoc increase granted to retirees based on benefit multiplier 3.0% divided by benefit multiplier 2.88%, minus one, and multiplied by 100.
Board Membership changed to allow for greater membership participation by adding one active officer and one retired officer position to the Board of Trustees.
Officers who had non-membership time after they were enrolled in Cadet class are now able to buy back that non-membership time as retirement service credit.
Cadets are now members of the retirement system at enrollment date and upon contributing 9% of their biweekly payroll.
Benefit formula multiplier was increased from 2.8% to 2.88%.
Special Ad hoc increase granted to retirees based on benefit multiplier 2.88% divided by benefit multiplier 2.8%, minus one, and multiplied by 100.
The retiree death benefit is increased to $7,500 from $5,000.
Retroactive Deferred Retirement Option Plan (RETRO DROP) provision added for retirement lump sum distribution with a reduced benefit.
The City's contribution rate was increased from 16% to 18%.