Retirement System Review - Fairfax County, Virginia · 5/22/2018 · May 22, 2018 Retirement...

May 22, 2018

Philip Hagen

Budget Services Coordinator

Department of Management and Budget

Retirement System Review

Board of Supervisors Personnel Committee Meeting

Agenda

▪ Background

▪ System Funding Status

▪ Options Considered by Workgroup

▪ Proposed Package

▪ Minimum Retirement Age of 60 (ERS) and 50 (URS/PORS)

▪ Rule of 90 (ERS)

▪ 5-Year Salary Averaging Period (All)

▪ Eliminate Pre-Social Security Supplement (ERS/URS)

▪ Eliminate 3% Formula Increase (All)

▪ Increase Employee Contribution Rate (All)

▪ Questions

2May 22, 2018 Retirement System Review

Background / Why We’re Here

▪ Continued Board commitment to Defined Benefit plans

▪ Sustainability of County plans

▪ General Fund employer contributions more than doubled from FY 2010 to FY 2018

▪ Retirees are living longer

▪ Peer jurisdictions, including those that are covered by VRS, have made

changes to their retirement benefits

▪ Proposed retirement benefits will continue to be strong compared to peer

jurisdictions and the private sector

▪ Impact of proposed changes to employees is mitigated by longer tenures


Changes to date

▪Shift in asset allocation strategies to provide greater protection from market downturns

▪Plan design changes effective for new employees hired on or after January 1, 2013

▪Succession planning during DROP period

▪Retirement education for employees

▪Surveying Employees

▪ New Hires

▪ Exit Interviews


Employees’ System History and Projections

May 22, 2018 Retirement System Review 5

Funding Ratios and Contribution Rates

5% 5% 5% 5% 5% 5% 5% 5% 5% 5% 5% 5% 5% 5% 5% 5% 5% 5% 5% 5% 5% 5% 5% 5% 5% 5% 5% 5% 5% 5% 5% 5% 5% 5% 5%6% 6% 6% 6% 6%

8% 8% 9% 10% 10% 10%

15%17%

19% 19% 20%22% 23%

25% 27% 28% 28% 28% 28% 28% 28% 28% 28% 28% 28% 28% 28% 28%

10% 10%

109%

58%

70%

104%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

110%

2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 2034

Fiscal Year

FY 2000 through FY 2034

EE Contribution ER Contribution Funding Ratio

Uniformed System History and Projections



7% 7% 7% 7% 7% 7% 7% 7% 7% 7% 7% 7% 7% 7% 7% 7% 7% 7% 7% 7% 7% 7% 7% 7% 7% 7% 7% 7% 7% 7% 7% 7% 7% 7% 7%

19% 20% 19%22% 23% 24% 25% 26% 26% 26% 26%

31%34% 35% 36% 38% 39% 39% 39% 39% 40% 40% 40% 40% 40% 40% 40% 40% 40% 40% 40% 40% 40%

20% 19%

107%

64%

81%

100%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

110%

2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 2034

Fiscal Year



Police Officers System History and Projections



12% 12% 12% 12% 12% 12% 12% 12% 11% 10% 10% 10% 10% 10% 10% 9% 9% 9% 9% 9% 9% 9% 9% 9% 9% 9% 9% 9% 9% 9% 9% 9% 9% 9% 9%

18%

26%22%

17% 18% 18% 18% 20% 21% 22% 23%

28%31%

33% 34% 37% 38% 39% 39% 40%42% 42% 42% 42% 42% 42% 42% 42% 42% 42% 42% 42% 42%

21% 20%

106%

66%

83%

100%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

110%

2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 2034

Fiscal Year



General Fund Employer Contributions


History by Retirement System

$33.1$45.2

$56.5 $63.2 $64.9 $68.8$79.0 $85.2

$95.9$38.4

$42.3

$47.2$50.5 $53.8

$57.7

$60.8$64.4

$65.8

$23.8

$29.0

$32.2

$35.3$36.5

$38.7

$41.1

$44.9

$45.2

$0

$50

$100

$150

$200

$250

FY 2010AdoptedBudget

FY 2011RevisedBudget








Ge

ne

ral F

un

d E

mp

loye

r C

on

trib

uti

on

s Millio

ns

Employees Uniformed Police

Drivers ($ in Millions)Actuarial Valuation/Experience Study $42.0

Amortization/Funding Policy $40.6

Compensation Adjustments $36.8

Benefit Enhancements $6.5

New Positions/Reductions/Budgetary Experience ($14.5)

Total $111.5

Options Considered by WorkgroupPercent Change in Employer Normal Cost*

Potential Change for New Hires Employees’ Uniformed Police Officers

1a MINIMUM RETIREMENT AGE: Increase Minimum Retirement Age in ERS from age 55 to age 60 (2.9%) -- --

1b MINIMUM RETIREMENT AGE: Increase Minimum Retirement Age in ERS from age 55 to age 57 (0.9%) -- --

1c MINIMUM RETIREMENT AGE: Establish a Minimum Retirement Age of 50 in URS/PORS -- (1.6%) (3.9%)

1d MINIMUM RETIREMENT AGE: Establish a Minimum Retirement Age of 47 in URS/PORS -- (0.5%) (0.4%)

2 RETIREMENT ELIGIBILITY: Increase retirement eligibility from Rule of 85 to Rule of 90 in ERS (1.0%) -- --

3a SALARY AVERAGING: Increase Salary Averaging Period from 3 Years to 5 Years (4.7%) (5.2%) (4.4%)

3b SALARY AVERAGING: Increase Salary Averaging Period from 3 Years to 4 Years (1.8%) (2.6%) (2.2%)

4 ELIMINATE PRE-SOCIAL SECURITY SUPPLEMENT: Eliminate Pre-Social Security Supplement in ERS/URS (7.5%) (5.7%) --

5LIMIT PRE-SOCIAL SECURITY SUPPLEMENT: Limit Pre-Social Security Supplement to 5 Years for Employees’

system and 7 Years for Uniformed system(1.7%) (1.7%) --

6 LIMIT RETIREE COLA: Limit Application of the Retiree COLA to the first $30,000 in benefits (1.2%) (6.6%) (6.1%)

7 REDUCE MULTIPLIER: Reduce base multiplier (2.0% in ERS, 2.5% in URS, and 2.8% in PORS) by 0.1% (7.3%) (5.1%) (4.4%)

8 ADD LONGEVITY STEPS: Add 5% longevity steps at 25 and 30 years in Pay Plans in URS and PORS -- 1.1% 0.6%

9ELIMINATE 3% FORMULA INCREASE: Eliminate the provision that increases the calculated retirement annuity by

3%(4.4%) (3.8%) (3.6%)

10 INCREASE EMPLOYEE CONTRIBUTION RATE: Increase the employee contribution by 1.0% (10.6%) (5.6%) (5.2%)

9May 22, 2018 Retirement System Review* In most cases, changes in Employer Normal Cost are

not additive. Packages must be calculated by the actuary.

Proposed Package

Potential Change for New Hires 3/13/18 Package

1aMINIMUM RETIREMENT AGE:

Increase Minimum Retirement Age in ERS from 55 to 60R

1cMINIMUM RETIREMENT AGE:

Establish a Minimum Retirement Age of 50 in URS/PORSR

2RETIREMENT ELIGIBILITY:

Increase from Rule of 85 to Rule of 90 in ERSR

3aSALARY AVERAGING:

Increase Salary Averaging Period from 3 Years to 5 YearsR

4ELIMINATE PRE-SOCIAL SECURITY SUPPLEMENT:

Eliminate Pre-Social Security Supplement in ERS/URSR

9ELIMINATE 3% FORMULA INCREASE:

Eliminate the provision that increases the calculated retirement annuity by 3%R

10INCREASE EMPLOYEE CONTRIBUTION:

Increase the employee contribution rate from 5.33% to 6% (ERS), from 7.08% to 8% (URS), and from 8.65% to 10% (PORS)R

Employees’ System Percent Change in Employer Normal Cost (24.68%)

Uniformed System Percent Change in Employer Normal Cost (20.41%)

Police Officers System Percent Change in Employer Normal Cost (18.63%)

Total Projected GF Savings when Fully Realized based on Current Payroll $16.38m


Final package considered, but not supported, by Retirement Workgroup

Rule of 90 (ERS)Minimum Retirement Age 60 (ERS)Minimum Retirement Age 50 (URS/PORS)Potential Plan Design Changes for New Hires


Retirement Eligibility Comparison

Jurisdiction Retirement Eligibility Minimum Retirement Age

Fairfax County Employees Retirement System (ERS)

Plans C/D

Rule of 85 (Proposed: Rule of 90)

-or-

Age 65 with 5 Years of Service

55 (Proposed: 60)

Virginia Retirement System (VRS) Hybrid Plan

(Alexandria, FCPS, Loudoun, Prince William)

Rule of 90

-or-

Normal Social Security Retirement Age with 5 Years of

Service

None

Federal Government (FERS)

Minimum Retirement Age with 30 Years of Service

-or-


-or-


55 - 57

Arlington County

Rule of 80

-or-

30 Years of Service

-or-


None


General Employees


45

50

55

60

65

70

75

80

18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 46 47 48 49 50 51 52 53 54 55 56 57 58 59 60 61 62 63 64 65 66 67 68 69 70

Earl

iest R

etire

men

t A

ge

Age at Hire

Earliest Retirement Age by Age at Hire

VRS Hybrid ERS C/D Rule of 90/Minimum Age 60


General Employees – Rule of 90 and Minimum Retirement Age 60


Jurisdiction Retirement Eligibility Minimum Retirement Age

Fairfax County Uniformed Retirement System (URS)

Plan E

25 Years of Service

-or-


None (Proposed: 50)

Fairfax County Police Officers Retirement System

(PORS) Plan B

25 Years of Service

-or-

Age 55

None (Proposed: 50)

Virginia Retirement System (VRS) Plan 2

(Loudoun, Prince William)

25 Years of Service

-or-


50

Federal Government (FERS) 20 Years of Service 50

City of Alexandria

25 Years of Service

-or-


50

Arlington County

25 Years of Service

-or-


None


Public Safety Employees


40

45

50

55

60

65

70

75

80

18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 46 47 48 49 50 51 52 53 54 55 56 57 58 59 60 61 62 63 64 65 66 67 68 69 70

Earl

iest R

etire

men

t A

ge

Age at Hire

Earliest Retirement Age by Age at Hire

VRS Plan 2 URS PORS Minimum Age 50


Public Safety Employees – Minimum Retirement Age 50

5-Year Salary Averaging Period (All)Potential Plan Design Changes for New Hires


Salary Averaging Period

Jurisdiction Salary Averaging Period

Fairfax County Employees Retirement System (ERS) Plans C/D 3 years (Proposed: 5 years)

Virginia Retirement System (VRS) Hybrid Plan 5 years

Federal Government (FERS) 3 years

Arlington County 3 years


General Employees

Salary Averaging Period

Jurisdiction Salary Averaging Period

Fairfax County Uniformed Retirement System (URS) Plan E 3 years (Proposed: 5 years)

Fairfax County Police Officers Retirement System (PORS) Plan B 3 years (Proposed: 5 years)

Virginia Retirement System (VRS) Plan 2 5 years

Federal Government (FERS) 3 years

City of Alexandria 4 years

Arlington County 3 years



Eliminate Pre-Social Security Supplement (ERS/URS)Potential Plan Design Changes for New Hires


Pre-Social Security Supplement

Jurisdiction Social Security Leveling

Fairfax County Employees Retirement System (ERS) Plans C/D Supplement1 (Proposed: Option)

Virginia Retirement System (VRS) Hybrid Plan Option2

Federal Government (FERS) Supplement3

Arlington County Option4


General Employees

1 The pre-Social Security supplement in the Fairfax County ERS is provided to normal service retirees from the date of retirement until they reach normal Social Security retirement age. The supplement is calculated using a

benefit multiplier of 1.0%.

2 Employees covered under the VRS Hybrid Plan may elect the Advance Pension Option at retirement. Under this option, the VRS annuity is temporarily increased until an age of the retiree’s choosing, between the ages of

62 and the retiree’s normal Social Security retirement age. The VRS annuity is permanently reduced once the retiree reaches the specified age.

3 Under the Federal Employees Retirement System (FERS), an annuity supplement is paid until age 62 to retirees that qualify for an unreduced annuity. The annuity supplement is calculated by first estimating the retiree’s

Social Security benefit at age 62 based on a 40‐year career. The estimated Social Security benefit is then reduced by the fraction of a 40‐year career that was worked under FERS to determine the annuity supplement.

The annuity supplement is subject to an earnings test, and is reduced by $1 for every $2 of earnings over the Social Security minimum level of earnings. While federal employees who retiree before the age of 62 are

eligible for this annuity supplement, the basic annuity formula for those who retire at age 62 or older with at least 20 years of service uses a higher benefit multiplier than those who retire under age 62 or with less than 20

years of service.

4 Retirees in the Arlington County Employees’ Retirement System may elect a Social Security Option as an annuity payment option. Under this option, the annuity is temporarily increased either until age 62 or until the

retiree reaches normal Social Security retirement age, at which time the annuity is permanently reduced.

Pre-Social Security Supplement

Jurisdiction Social Security Leveling

Fairfax County Uniformed Retirement System (URS) Plan E Supplement1 (Proposed: Option)

Fairfax County Police Officers Retirement System (PORS) Plan B None2

Virginia Retirement System (VRS) Plan 2 Supplement3

Federal Government (FERS) Supplement4

City of Alexandria None

Arlington County Option5



1 The pre-Social Security supplement in the Fairfax County URS is provided to normal service retirees from the date of retirement until they reach normal Social Security retirement age. The supplement is calculated using a

benefit multiplier of 0.3%.

2 Fairfax County police officers do not contribute to Social Security based on their employment as Fairfax County police officers, and therefore a pre‐Social Security supplement is not included in the design of the Police

Officers Retirement System.

3 Employees covered under VRS that retire with at least 20 years of hazardous duty service are eligible for a hazardous duty supplement. The supplement is currently $13,548 per year, and is payable from retirement until

the retiree reaches normal Social Security retirement age.

4 Under the Federal Employees Retirement System (FERS), an annuity supplement is paid until age 62 to retirees that qualify for an unreduced annuity. The annuity supplement is calculated by first estimating the retiree’s

Social Security benefit at age 62 based on a 40‐year career. The estimated Social Security benefit is then reduced by the fraction of a 40‐year career that was worked under FERS to determine the annuity supplement.

The annuity supplement is subject to an earnings test, and is reduced by $1 for every $2 of earnings over the Social Security minimum level of earnings.

5 Retirees in the Arlington County Employees’ Retirement System may elect a Social Security Option as an annuity payment option. Under this option, the annuity is temporarily increased either until age 62 or until the

retiree reaches normal Social Security retirement age, at which time the annuity is permanently reduced.

Eliminate 3% Formula Increase (All)Potential Plan Design Changes for New Hires


Retirement Benefit Calculation

▪Retirement benefits became taxable by the Commonwealth of

Virginia effective with the 1989 tax year

▪ In order to offset the impact, the Board approved a 3% increase in

retirement benefits


3% Formula Increase

Employees’ Uniformed Police

Base Multiplier 2.00% 2.50% 2.80%

3% Increase 0.06% 0.08% 0.08%

Effective Multiplier 2.06% 2.58% 2.88%

Increase Employee Contributionfrom 5.33% to 6% (ERS)from 7.08% to 8% (URS)from 8.65% to 10% (PORS)

Potential Plan Design Changes for New Hires


Retirement Contribution Rates


Components of Rates when 100% Funded

Normal Cost (ER) 7.70%

Normal Cost (ER) 16.12%Normal Cost (ER) 17.98%

Expense (ER) 0.25%

Expense (ER) 0.25%

Expense (ER) 0.40%

Normal Cost (EE) 5.33%



0%

5%

10%

15%

20%

25%

30%

35%

Employees' Uniformed Police Officers

Employee and Employer Portions of Normal Cost and Expenses (Post-2013 Plans)

40%

Employee

60%

Employer

30%

Employee

70%

Employer

32%

Employee

68%

Employer

Retirement Contribution Rates


Components of Rates when 100% Funded

Normal Cost (ER) 5.80%

Normal Cost (ER) 12.83%Normal Cost (ER) 14.63%

Expense (ER) 0.25%

Expense (ER) 0.25%

Expense (ER) 0.40%




0%

5%

10%

15%

20%

25%

30%

35%

Employees' Uniformed Police Officers

Employee and Employer Portions of Normal Cost and Expenses (Proposed Plans)

50%

Employee

50%

Employer

38%

Employee

62%

Employer

40%

Employee

60%

Employer

Proposed Package


R Rule of 90 (ERS)

R Minimum Retirement Age 60 (ERS) and 50 (URS/PORS)

R 5-Year Salary Averaging Period (All)

R Eliminate Pre-Social Security Supplement (ERS/URS)

R Eliminate 3% Formula Increase (All)

RIncrease Employee Contribution from 5.33% to 6% (ERS),

from 7.08% to 8% (URS), and from 8.65% to 10% (PORS)

Potential Change for New Hires


Proposed PackageRule of 90

Inc Min Age

Add Min AgeAdd Min Age

5 Year Avg

5 Year Avg

5 Year Avg

Elim PreSS Supp

Elim PreSS Supp

Elim Extra 3%

Elim Extra 3%

Elim Extra 3%

Inc EE Rate

Inc EE Rate

Inc EE Rate

-35%

-30%

-25%

-20%

-15%

-10%

-5%

0%

Employees' Uniformed Police

Proposed PackageReduction in Employer Normal Cost

R Rule of 90 (ERS)

RMinimum Retirement Age 60 (ERS) and 50

(URS/PORS)

R 5-Year Salary Averaging Period (All)

R Eliminate Pre-Social Security Supplement (ERS/URS)

R Eliminate 3% Formula Increase (All)

R

Increase Employee Contribution from 5.33% to 6%

(ERS), from 7.08% to 8% (URS), and from 8.65% to

10% (PORS)

Normal Cost

decreases by

24.7%

(From 7.70%

to 5.80% of

pay)

Normal Cost

decreases by

20.4%

(From 16.12%

to 12.83% of

pay)

Normal Cost

decreases by

18.6%

(From 17.98%

to 14.63% of

pay)

▪Estimated General Fund savings of approximately $16.4 million when fully implemented based on current payroll

$0

$20,000

$40,000

$60,000

$80,000

$100,000

$120,000

$140,000

$160,000

$180,000

$200,000

$220,000

$240,000

18

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81

An

nu

al S

alar

y/B

enef

it

Projected Retirement Benefit Based on Average Age New Hire

Age-YearSalary Base Retirement Benefit Pre-SS Benefit Social Security Current Salary/Benefits Final Average Salary


Proposed Package: Average Age Hire

Employees’ Retirement System

Current Adjusted

Retirement Income Replacement (1st Year)

Base BenefitPre-SS BenefitTotal

48.7%24.4%73.1%

50.5%0.0%50.5%

Earliest Retirement Age 61.5 64

Minimum Years of Service 23.5 26

• New Hire in 2039 at Age 38, Hired at 24% of Scale

• Assume S-21 with no promotions

• Retiring at earliest age for unreduced benefits

• Does not include pension-eligible stipends or extra pay

• Estimates Social Security benefit at 30% of Final Average Salary

• Assumes 1.5% Market Rate Adjustments and full funding of pay plan

each year

• Assumes 1.5% annual County retiree COLA

• Assumes 1.0% annual COLA for Social Security



Uniformed Retirement System• New Hire in 2030 at Age 29, Hired at Step 1

• Assume F-18 with no promotions





each year



$0

$20,000

$40,000

$60,000

$80,000

$100,000

$120,000

$140,000

$160,000

$180,000

$200,000

$220,000

$240,000

18

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81

An

nu

al S

alar

y/B

enef

it

Projected Retirement Benefit Based on Average New Hire


Current Adjusted



63.4%7.6%71.0%

60.7%0.0%60.7%

Earliest Retirement Age 54 54

Minimum Years of Service 25 25



Police Officers Retirement System• New Hire in 2028 at Age 27, Hired at Step 1

• Assume O-17 with no promotions





each year



$0

$20,000

$40,000

$60,000

$80,000

$100,000

$120,000

$140,000

$160,000

$180,000

$200,000

$220,000

$240,000

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81

An

nu

al S

alar

y/B

enef

it

Projected Retirement Benefit Based on Average New Hire

Age-YearSalary Base Retirement Benefit Current Salary/Benefits Final Average Salary

Current Adjusted


71.0% 68.0%



$0

$20,000

$40,000

$60,000

$80,000

$100,000

$120,000

$140,000

$160,000

$180,000

$200,000

$220,000

$240,000

18

-20

19

19

-20

20

20

-20

21

21

-20

22

22

-20

23

23

-20

24

24

-20

25

25

-20

26

26

-20

27

27

-20

28

28

-20

29

29

-20

30

30

-20

31

31

-20

32

32

-20

33

33

-20

34

34

-20

35

35

-20

36

36

-20

37

37

-20

38

38

-20

39

39

-20

40

40

-20

41

41

-20

42

42

-20

43

43

-20

44

44

-20

45

45

-20

46

46

-20

47

47

-20

48

48

-20

49

49

-20

50

50

-20

51

51

-20

52

52

-20

53

53

-20

54

54

-20

55

55

-20

56

56

-20

57

57

-20

58

58

-20

59

59

-20

60

60

-20

61

61

-20

62

62

-20

63

63

-20

64

64

-20

65

65

-20

66

66

-20

67

67

-20

68

68

-20

69

69

-20

70

70

-20

71

71

-20

72

72

-20

73

73

-20

74

74

-20

75

75

-20

76

76

-20

77

77

-20

78

78

-20

79

79

-20

80

80

-20

81

An

nu

al S

alar

y/B

enef

it

Projected Retirement Benefit Based on Age 21 New Hire



Proposed Package: Age 21 Hire

Employees’ Retirement System• New Hire in 2019 at Age 21, Hired at 0% of Scale

• Assume S-21 with no promotions





each year



Current Adjusted



69.0%34.5%103.5%

75.7%0.0%75.7%



$0

$20,000

$40,000

$60,000

$80,000

$100,000

$120,000

$140,000

$160,000

$180,000

$200,000

$220,000

$240,000

18

-20

19

19

-20

20

20

-20

21

21

-20

22

22

-20

23

23

-20

24

24

-20

25

25

-20

26

26

-20

27

27

-20

28

28

-20

29

29

-20

30

30

-20

31

31

-20

32

32

-20

33

33

-20

34

34

-20

35

35

-20

36

36

-20

37

37

-20

38

38

-20

39

39

-20

40

40

-20

41

41

-20

42

42

-20

43

43

-20

44

44

-20

45

45

-20

46

46

-20

47

47

-20

48

48

-20

49

49

-20

50

50

-20

51

51

-20

52

52

-20

53

53

-20

54

54

-20

55

55

-20

56

56

-20

57

57

-20

58

58

-20

59

59

-20

60

60

-20

61

61

-20

62

62

-20

63

63

-20

64

64

-20

65

65

-20

66

66

-20

67

67

-20

68

68

-20

69

69

-20

70

70

-20

71

71

-20

72

72

-20

73

73

-20

74

74

-20

75

75

-20

76

76

-20

77

77

-20

78

78

-20

79

79

-20

80

80

-20

81

An

nu

al S

alar

y/B

enef

it





Uniformed Retirement System• New Hire in 2019 at Age 21, Hired at Step 1

• Assume F-18 with no promotions





each year



Current Adjusted



63.4%7.6%71.0%

70.4%0.0%70.4%



$0

$20,000

$40,000

$60,000

$80,000

$100,000

$120,000

$140,000

$160,000

$180,000

$200,000

$220,000

$240,000

18

-20

19

19

-20

20

20

-20

21

21

-20

22

22

-20

23

23

-20

24

24

-20

25

25

-20

26

26

-20

27

27

-20

28

28

-20

29

29

-20

30

30

-20

31

31

-20

32

32

-20

33

33

-20

34

34

-20

35

35

-20

36

36

-20

37

37

-20

38

38

-20

39

39

-20

40

40

-20

41

41

-20

42

42

-20

43

43

-20

44

44

-20

45

45

-20

46

46

-20

47

47

-20

48

48

-20

49

49

-20

50

50

-20

51

51

-20

52

52

-20

53

53

-20

54

54

-20

55

55

-20

56

56

-20

57

57

-20

58

58

-20

59

59

-20

60

60

-20

61

61

-20

62

62

-20

63

63

-20

64

64

-20

65

65

-20

66

66

-20

67

67

-20

68

68

-20

69

69

-20

70

70

-20

71

71

-20

72

72

-20

73

73

-20

74

74

-20

75

75

-20

76

76

-20

77

77

-20

78

78

-20

79

79

-20

80

80

-20

81

An

nu

al S

alar

y/B

enef

it


Age-YearSalary Base Retirement Benefit Current Salary/Benefits Final Average Salary



Police Officers Retirement System• New Hire in 2019 at Age 21, Hired at Step 1

• Assume O-17 with no promotions





each year



Current Adjusted


71.0% 78.8%



Next Steps/Tentative Timeline

▪Discussion of plan changes and direction to proceed by Personnel

Committee

▪ June 26, 2018 – Next Personnel Committee meeting

▪ Implementation of changes in code by Board

▪ Authorization to advertise public hearing

▪ Public hearing and approval of amendments to code

▪Changes effective for new hires


Questions


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Retirement System Review - Fairfax County, Virginia · 5/22/2018 · May 22, 2018 Retirement...

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