This bill amends the municipal fire and police retirement system to allow members to retire early at the age of 50, provided they have completed at least 22 years of creditable service. Members opting for this early retirement will receive a reduced service retirement allowance, which will be calculated based on their average final compensation, with a percentage multiplier that is adjusted by the board of trustees for each month the retirement date precedes the member's 55th birthday. The board will determine the reduction percentage annually based on actuarial valuations to ensure that early retirement does not increase costs to the system.

Additionally, the bill updates the language in existing law to include the new early retirement option by inserting references to subsection 2A, which outlines the conditions and calculations for the reduced retirement allowance. It also clarifies that in the event of a member's death while receiving a retirement allowance under the new provisions, a pension will be paid to beneficiaries. This change aligns the municipal fire and police retirement system with similar provisions already in place for the peace officers retirement, accident, and disability system.

Statutes affected:
Introduced: 411.6