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FAQ (Frequently Asked Questions) About the Annual Adjustment

 

Q: Who gets an annual adjustment?
A: Generally, Group A (formerly Plan A) and Group B Pensioners, survivors, and alternate payees in payment status (Pensioners or DROP Members) receive the annual adjustment. Generally, persons receiving the minimum benefit do not receive the annual adjustment.
Q: What is the amount of the increase for the annual adjustment?
A: The annual adjustment is 4% of your base benefit (the amount calculated when you first left Active Service or joined DROP).
Q: How can I tell what my base benefit is?
A: Look on the retirement paperwork you received when you retired, or ask a Benefits Counselor at the Pension System office through e-mail at info@dpfp.org, or call 214.638.3863 or 1.800.638.3861.
Q:

If I am eligible for a 4% increase, why hasn't my check increased by 4%?

A:

Your increase is calculated on 4% of your base benefit, an number determined when you first left Active Service or joined DROP. Your increase is not 4% of your current benefit amount. See question 2 above.

Example:
Firefighter Gonzales begins receiving a retirement benefit equal to $3,714.63. Her monthly annual adjustment amount will be:
$3,714.63 x 4% = $148.59

On the first October following her retirement, her pension becomes:
$3,714.63 + 148.59 = $3,863.22

The following October, her benefit will again be increased by $148.59 to become $4,011.81. The same amount is added to her pension benefit each October thereafter while she remains in pay status.

Q: When does the adjustment begin?
A: The annual adjustment is added to benefit payments each October 1. Eligible Pensioners in Group A and Group B and DROP Members will see the increase on the October depostis or checks they receive at the end of that month.
Q: What about Old Plan Pensioners?
A: Old Plan Pensioners do not receive the 4% annual adjustment. Old Plan Pensioners receive an increase when Active Members receive an increase in pay or when the minimum benefit is raised. When active Police Officers and Firefighters receive a raise, Old Plan Pensioners will receive a raise based on the increase for Active Members.
Q: I receive the minimum benefit, why didn't I get an increase?
A: The annual adjustment is not added to the minimum benefit. However, we keep track of your calculated base benefit plus annual adjustment. When your calculated base benefit plus accumulated annual adjustments exceeds your minimum benefit, we will change you to the greater amount.
Q: I have been receiving the minimum benefit. How did I get an increase?
A:

With the 4% annual adjustment, your adjusted calculated base benefit must have been higher than the minimum benefit. So your benefit was changed to the greater amount. We always compare the calculated benefit to the minimum benefit, and you receive the larger amount.

Q: I receive pension benefits as part of a divorce settlement. Will I get the annual adjustment?
A: Yes, both the Member and alternate payees in Group A and Group B will receive the annual adjustment.
Q: I receive pension benefits as a survivor of a deceased Member. Will I get the annual adjustment?
A: Yes, survivors in Group A and Group B will receive the annual adjustment, which is 4% of the base benefit at the time the Member left Active Service.
Q: What if I have more questions?
A: We are here to help. We do our best to provide clear, understandable information to you.

If you have additional questions about your Pension Benefits, send your request to info@dpfp.org, or call us at 214.638.3863 or 1.800.638.3861.

Call your Department resources for information other than pension benefits.
For health benefit questions, call the City of Dallas Benefit Service Center at 1.888.873.7692.



We Are Here to Help
We do our best to provide clear, understandable information to you. For more Member or Pensioner information, please contact us via e-mail at info@dpfp.org. You also call the Pension System office at 214.638.3863 or 1.800.638.3861, and ask for a Benefits Counselor. Our Benefits Counselors are trained to answer all your pension questions.