Pay Statement Definitions

ANNUITY: The portion of the basic retirement benefit that is based on your contributions to the retirement system. This is a percentage of your final compensation, based on age and years of service. Current legal opinion is that this benefit may not be reduced.

COL (Cost of Living Adjustment): The net total of increases that have been granted as annual Cost of Living Adjustments. If you retired recently, this may show Ø or may not be listed. This amount may be reduced under certain circumstances if the annual change in the Consumer Price Index (CPI) is negative.

CURRENT SERVICE: The retirement benefit provided by the employer’s contributions. This is a percentage of your final compensation, based on age and years of service. Current legal opinion is that this benefit may not be reduced.

HEALTH BENEFIT: A vested health benefit, based on years of service. This is part of the additional benefits provided under the enhanced retirement formula effective January 1, 2001 and is only available to members in General Tiers 1, 2 & 3 and Safety Tiers 1, 2 & 4.

SETTLE ANNUITY: Additional benefit provided under the enhanced retirement formula effective January 1, 2001. This applies to employees who retired on or after January 1, 2001. This is a percentage of your final compensation, based on age and years of service.

SETTLE BENEFIT: Additional benefit provided under the enhanced retirement formula effective January 1, 2001. This applies to those who retired prior to this date and is a flat amount per year of service up to 30 years up to a maximum payment of $450 per month.

SUPPLE COLA: A benefit which applies only to those retirees who retired prior to April 1, 1981; also known as “purchasing power protection”.

ANNUITY TAO (Temporary Annuity): Advance on Social Security benefits (if this option was selected at retirement). In effect, this is an advance on future Social Security benefits. Retirees who choose this option receive a higher benefit than they would otherwise prior to age 62 and a lower benefit after age 62. This benefit will be eliminated when the member turns 62. This is a percentage of your final compensation, based on age and years of service.

COL TAO (Cost of Living Adjustment on TAO): Advance Social Security benefit (if this option was selected at retirement). The net total of increases that have been granted as annual Cost of Living Adjustments if you retired recently, this may show Ø or may not be listed. This amount may be reduced under certain circumstances if the annual change in the Consumer Price Index (CPE) is negative.

CURRENT SERVTAO (Current Service TAO): Advance Social Security benefit (if this option was selected at retirement) the retirement benefit provided by the employer’s contributions. In effect, this is an advance on future Social Security benefits. Retirees who choose this option receive a higher benefit than they would otherwise prior to age 62 and a lower benefit after age 62. This benefit will be eliminated when the member turns 62. This is a percentage of your final compensation, based on age and years of service.

SETTLEANNUITTAO (Settlement Annuity TAO): Advance Social Security benefit (If this option was selected at retirement) with additional benefit provided under the enhanced retirement formula effective January 1, 2001. In effect, this is an advance on future Social Security benefits. Retirees who choose this option receive a higher benefit than they would otherwise prior to age 62 and a lower benefit after age 62. This benefit will be eliminated when the member turns 62. This is a percentage of your final compensation, based on age and years of service.

SURVIVOR: Payment to eligible beneficiary of an active deceased member.

INTEREST: Payment made in certain circumstances when an underpayment of a retirement benefit is paid.