2023 Laws of Puerto Rico › TITLE THREE - Executive (§§ 1 — 9311) › Chapter 33 - Retirement of Government Personnel (§§ 761 — 830q) › § 787c - Defined Contribution Hybrid Program—Accumulated benefits

(a) On the effective date of this act, employees participating in the System who entered public service before January 1, 2000 and who, as of June 30, 2013, are not participants of the Retirement Savings Account Program established under Chapter 3 of this Act shall keep their accumulated benefits as to credited years of service and the computation of the average compensation. Participants who, as of June 30, 2013, were entitled to retire and receive some sort of pension under this Act for having met the years of service and age requirements provided herein, shall retire on a subsequent date and shall be entitled to receive the corresponding annuity under Chapter 2 of this Act based on the compensation and years of service accrued as of June 30, 2013, as well as the annuity established in § 787j of this title. In addition, the provisions of clauses (7), (8), (9), (10), and (11) of this subsection shall apply to these participants.
The following provisions shall apply to System participants who (i) entered service before January 1, 2000, (ii) as of June 20, 2013, are not participants of the Retirement Savings Account Program established under Chapter 3 of this Act, and (iii) as of June 30, 2013, do not meet the years of service and age requirements for retirement provided in Chapter 2 of this Act:
(1) New retirement age for participants who enrolled for the first time in the System before April 1, 1990.— In the case of participants who, as of June 20, 2013, have not reached the age of 58 and completed at least 10 years of service, or have not reached the age of 55 and completed 25 years of service, retirement shall be optional when they meet the following age and years of service requirements:
(A) If, as of June 30, 2013, the participant is 57 years old, retirement shall be optional when he/she has reached the age of 59 and has completed at least 10 years of service.
(B) If, as of June 30, 2013, the participant is 56 years old, retirement shall be optional when he/she has reached the age of 60 and has completed at least 10 years of service.
(C) If, as of June 30, 2013, the participant is 55 years old or younger, retirement shall be optional when he/she has reached the age of 61 and has completed at least 10 years of service.
(2) Retirement age for participants who have enrolled for the first time in the System between April 1, 1990 and December 31, 1999.— In the case of participants who, as of June 30, 2013, have not reached the age of 65 and completed at least 10 years of service, retirement shall be optional when such participants reach the age of 65 and have completed 10 years of service.
(3) In the case of public employees in high-risk positions who entered public service before April 1, 1990, and who, as of June 30, 2013, have not reached the age of 50 and completed at least 25 years of service, or have not completed 30 years of service, regardless of their age, retirement shall be optional when they reach the age of 55 and have completed 30 years of service.
(4) In the case of public employees in high-risk positions who entered public service between April 1, 1990 and December 31, 1999, and who, as of June 30, 2013, have not reached the age of 55 and have completed 25 years of service, or have not completed 30 years of service, regardless of their age, retirement shall be optional when they reach the age of 55 and have completed 30 years of service.
(5) Public employees in high-risk positions who separate from active duty before meeting the age and years of service requirements under clauses (3) and (4) of this subsection shall only receive their pension when they meet the following age and service requirements:
(A) If the participant enrolled for the first time in the System before April 1, 1990, once he/she meets the age and service requirements set forth in clause (1) of this subsection.
(B) If the participant enrolled for the first time in the System between April 1, 1990 and December 31, 1999, once he/she meets the age and service requirements set forth in clause (2) of this subsection.
(6) Computation of pension.— When the participant meets the aforementioned age and service requirements, he/she shall be entitled to receive an annuity which shall be computed based on the years of service accumulated as of June 30, 2013, and pursuant to the following rules:
(A) The average compensation for employees who entered public service before April 1, 1990, shall be that established in § 763(15) of this title.
(B) The average compensation for employees who entered public service between April 1, 1990 and December 31, 1999, shall be that established in § 766b of this title.
(C) The pension for employees who entered public service before April 1, 1990, shall be computed on the basis of one point five percent (1.5%) of the average compensation multiplied by the number of years of credited services up to twenty (20) years, plus two percent (2%) of the average compensation, multiplied by the number of years of credited services in excess of twenty (20) years, in each case, until June 30, 2013.
(D) The pension for employees who entered public service between April 1, 1990 and December 31, 1999, shall be computed on the basis of one point five percent (1.5%) of the average compensation, multiplied by the number of years of credited services up to June 30, 2013.
(E) System participants who, as of June 30, 2013, have availed themselves of the plan coordinated with Social Security Benefits shall receive an annuity adjusted in accordance with the provisions of § 766(e) of this title. Provided, that the participant shall receive an annuity in accordance with the provisions of this section until he/she is eligible to receive Social Security benefits.
(F) A participant shall receive this pension together with the annuity accrued by him/her in accordance with § 787j of this title.
(7) As of July 1, 2013, participants shall not accumulate additional years of service to determine the average compensation when computing a pension under clause (4) of this subsection. Moreover, uncredited services, as well as transfers or contributions paid for periods worked prior to June 30, 2013, shall not be recognized, save for the exceptions expressly provided by this act.
(8) The provisions of § 785 of this title shall apply to the participant’s contributions.
(9) Reimbursement of contributions.— As of July 1, 2013, upon permanent separation from service, participants shall be entitled to the annuity provided under this section, but not o the reimbursement of contributions for separation of service, whether voluntarily, involuntarily, or due to disability. The contributions made by System participants who entered public service before December 31, 1999, and who have not completed ten (10) years of service as of June 30, 2013, shall be transferred to the participant’s account under the Hybrid Program.
(10) Death of a participant in active service.— Upon the death of any person who was rendering services and had accumulated contributions in the Hybrid Program, such contributions shall be reimbursed to the person or persons designated by the participant under a written order duly recognized and filed with the Administrator, or to his/her heirs, if such designation had not been made. The reimbursement shall be equal to the amount of the contributions made and the interests accrued thereon up to six (6) months after the date of death or the date on which such contributions were paid, whichever is earlier. The Administrator shall collect from such contributions any outstanding debt that the participant may have with the System.
(11) Death of a pensioner.— Unless, as provided in this act, an annuity by transfer were payable upon the death of a participant who had been receiving a retirement annuity, a lump-sum cash payment in the form of death benefits shall be made to the person or persons designated by the participant under a written order duly recognized and filed with the Administrator, or to his/her heirs, if such designation had not been made. Such benefit shall consist of the excess, if any, of the contributions accumulated up to June 30, 2013, in favor of the participant until his/her retirement date, over the total amount of all retirement annuity payments that the participant received before his/her death. If a participant who is a pensioner dies within thirty (30) days after his/her retirement date, it shall be understood that, for purposes of any of the provisions of this act, he/she died while in active service, notwithstanding any provision of this act to the contrary.
(b) Employees who entered public service on or after January 1, 2000, or those who were participating in the Retirement Savings Account Program and who, as of June 30, 2013, could separate from service for being sixty (60) years old, may retire on any subsequent date and be entitled to receive an annuity as the balance of the contributions made to the Retirement Savings Account Program may allow, as well as those accumulated under the Defined Contribution Hybrid Plan.
(1) The account under the Retirement Savings Account Program of any employee who enrolled for the first time in the System on or after January 1, 2000, shall be transferred to the Defined Contribution Hybrid Plan. Provided, that if as of June 30 2013, such employee has not reached the age of sixty (60), he/she shall be entitled to the annuity established in § 787j of this title when the following age requirements are met:
(A) If, as of June 30, 2013, the participant is 59 years old, retirement shall be optional when he/she reaches the age of 61.
(B) If, as of June 30, 2013, the participant is 58 years old, retirement shall be optional when he/she reaches the age of 62.
(C) If, as of June 30, 2013, the participant is 57 years old, retirement shall be optional when he/she reaches the age of 63.
(D) If, as of June 30, 2013, the participant is 56 years old, retirement shall be optional when he/she reaches the age of 64.
(E) If, as of June 30, 2013, the participant is 55 years old, retirement shall be optional when he/she reaches the age of 65.
(2) In the case of public employees in high-risk positions who entered public service after December 31, 1999 and, as of June 30, 2013, have not reached the age of 55, retirement shall be optional when they reach the age of 55.
History —May 15, 1951, No. 447, p. 1298, added as § 5-103 on Apr. 4, 2013, No. 3, § 17, eff. July 1, 2013.