The City of Franklin Employees' Pension Plan is an important part of the employee's total compensation package and will assist in providing income during retirement. This plan covers all regular full time employees. If you were first hired by the City before February 15, 2010, you become a participant in the Plan after you complete a year of Credited Service with the City as a Regular Employee, as designated by the City. If you were first hired by the City on or after February 15, 2010, you are eligible to participate in the Plan upon commencement of employment with the City as a Regular Employee. You are a Regular Employee if you have a full-time position that is designated as a Regular position by the City and you work at least thirty (30) hours per week. Credited Service for purposes of eligibility to participate in the Plan includes only service that you have completed as a Regular Employee. Credited Service for purposes of eligibility under the Plan does not include any service that you have completed as a Temporary Employee. Employees are 100% vested after five (5) years of employment.
If you were first hired by the City before February 15, 2010, you contribute nothing to the basic benefit structure; it is funded entirely by the City of Franklin. If you were first hired by the City on or after February 15, 2010, you must make a mandatory contribution to the Plan equal to 5% of your annual Covered Compensation.
If an employee retires after July 1, 2003 they will receive a monthly benefit of 2% their average monthly compensation multiplied by their years of credited service with the City. If an employee leaves the City with a vested benefit before they are eligible for retirement, they will receive a benefit at age 65 calculated according to the benefit formula in effect when they terminated employment with the City.
Your normal retirement date is the first day of the month following or the same as the later of the day you attain age 65 or complete five (5) years of Credited Service as a Regular Employee. For example, if you turn 65 on February 17, your normal retirement date is March 1.
If you were hired by the City before July 1, 2006, regardless of your age, you are also eligible for normal retirement on the first day of the month following or the same as the day you have completed twenty-five (25) years of Credited Service as a Regular Employee.
Employees can retire early on the first day of any month after they reach age 55 if they have completed 10 years of credited service as a regular employee. If an employee retires early, they may defer their benefit until their retirement date, without any reduction in their benefit, or they may take the benefit immediately. If you take it immediately, your annual benefit will be reduced. If you were first hired by the City before February 15, 2010, there is no reduction if you retire early when you are at least 62 years of age and have 20 or more years Credited Service as a Regular Employee.