Jacksonville General Employees Pension Plan: PLOP and Refund

Updated October 7, 2026. Quick answer: A City of Jacksonville employee hired before October 1, 2017 and covered by the General Employees Pension Plan earns 2.5% of final monthly compensation per year of service, up to 80%. The documents read describe no single-life or joint-and-survivor election: a surviving spouse receives 75% of the benefit. Retirement choices are a 5%, 10% or 15% partial lump sum (PLOP), a BACKDROP lump sum for members with 30 years, or a one-time transfer to the defined contribution plan. A refund of contributions carries no interest and forfeits all future plan benefits, with 20% withheld unless rolled over.

Jacksonville police officers and firefighters belong to a separate city fund with its own rules: Jacksonville police and fire pension decisions.

Tampa city general employees belong to a separate city fund with its own rules: Tampa general employees retirement decisions.

Which Jacksonville members this page covers

This page covers the City of Jacksonville General Employees Pension Plan (GEPP) as described in the Retirement System’s Summary Plan Description (SPD) dated April 25, 2024, and in three pages of the Retirement System’s website read on October 7, 2026: a members’ summary, a page on the PLOP and BACKDROP options, and the frequently asked questions. The members’ summary says “The City has three pension plans, one for general employees, another for corrections officers and a third for police and fire.” This page covers only the general employees plan.

The hire-date group comes first. The SPD says “Employees must have been hired PRIOR to OCTOBER 1, 2017, to potentially be a member of the GEPP.” The members’ summary adds that “Most employees hired after October 1, 2017 will participate in a defined contribution plan”. So this page applies to a general employee hired before that date. Someone hired on or after it would be in the defined contribution plan (the GEDC), which the documents read do not describe in detail. Members pay in: “The current contribution rate is ten percent (10%) of base salary and service raises where applicable.” State tax questions are on Florida retirement taxes and does Florida tax pensions.

When a pension can start and how it is calculated

The SPD gives three ways to retire with a normal benefit: “completing 30 years of credited service, regardless of age”; “attaining age 55 with 20 years of credited service”; or “attaining age 65 with 5 years of credited service”. Once a condition is met, a member is entitled to “a retirement benefit of 2.5% of final monthly compensation”, multiplied by credited service, “up to a maximum benefit of 80% of final monthly compensation”. Final monthly compensation is the average of the highest 36 consecutive months out of the last 10 years of employment, as the SPD defines it.

A computed example from an assumed $4,000 final monthly compensation, not a Jacksonville figure: at 25 years of service, 2.5% times 25 is a computed 62.5% of final monthly compensation, so the monthly benefit is a computed $2,500. The cap of 80% is not reached until 32 years at this accrual rate.

Early retirement has two doors. The SPD says a member may retire after “completing 25 years of credited service, but less than 30 years of credited service, regardless of age, with a 2% accrual rate”, or after “attaining age 50 with 20 years of credited service”. For the second, “The amount of the benefit is reduced by (0.5)% for each month preceding age 55.” The SPD gives no further formula, so the example below reads it as a cut to the benefit amount, which the Pension Office should confirm.

A computed example from assumed figures, not a Jacksonville figure: age 50 is 60 months before 55, so 60 months at 0.5% is a computed 30% reduction. With 20 years of service, 2.5% times 20 is a computed 50% of an assumed $4,000, or $2,000 before reduction; reduced by 30%, the monthly benefit is a computed $1,400.

The election: what the documents offer, and what they do not

Many public plans ask a retiring member to choose between a single-life benefit and a joint-and-survivor benefit. The documents read for Jacksonville describe no such menu. They set one survivor rule (next section), and the elections they do describe concern lump sums and leaving the plan. The table summarizes them.

GEPP options (Summary Plan Description and website)
Option	What it pays	What it does to a survivor or later benefits
Normal retirement	2.5% of final monthly compensation per year of service, paid as bi-weekly amounts for life, up to 80%	Spouse receives 75% of the benefit and the full supplement
Early retirement at 25 years	A 2% accrual rate instead of 2.5%	The SPD states the survivor rule for retired members generally
PLOP (5%, 10% or 15%)	A lump sum of up to 15% of the actuarial present value, paid soon after retirement	A lower bi-weekly benefit for the rest of the member’s or surviving spouse’s life
BACKDROP (30 years)	A lump sum of benefits credited for up to 60 months, plus interest within a range of four percent either way	The monthly portion is paid for life; no separate survivor rule is stated in the pages read
Transfer to the GEDC	The value of the benefit moves as a rollover to the defined contribution plan	No future benefit is available from the GEPP
Refund of contributions	Employee contributions with no interest	All future GEPP benefits are forfeited

For the general decision, see single-life versus joint-and-survivor pension.

What a surviving spouse and children receive

“Upon the death of a retired member, the surviving spouse receives 75% of the member’s retirement benefit and the full supplement.” The SPD sets conditions: “the spouse must be married to and living with the member at the time of the member’s death and have been married to the member for a minimum of 365 days immediately prior to death”. “The surviving spouse’s benefit will continue until death and is not affected by remarriage.” “The spouse also receives an additional 10 percent for unmarried children under the age of 18, not to exceed 100 percent of the retiree’s benefit.”

If the retiree is single: “If the retiree is single, their estate will receive a refund of any remaining employee contributions.” The FAQ page cautions that “In most cases, the funds a retiree had contributed to a pension plan are usually exhausted within the first three years of retirement”.

A computed example from an assumed $2,500 monthly benefit, not a Jacksonville figure: 75% of $2,500 is a computed $1,875 a month for an eligible spouse, before the supplement.

Death before retirement differs. For an active member who dies and is not yet eligible for a time service retirement, “the surviving spouse will receive 75% of the pension the member would have received if the member retired with a time service retirement based on a 2% annual accrual rate”. The general topic is on survivor benefit with a government pension.

The partial lump sum (PLOP)

The SPD says a member retiring from active status may take a partial lump sum. “This lump-sum payment may not exceed 15% of the actuarial present value of the member’s retirement benefits.” “Retirees can choose a 5%, 10% or 15% PLOP.” “The PLOP only applies to the base benefit, not to the supplement.” The price is a smaller pension: “The remaining retirement benefits are actuarially reduced to reflect the lump-sum payment made to the member which will result in a lower bi-weekly retirement benefit payment for the rest of the member’s or surviving spouse’s life.”

The Retirement System’s web page gives an illustration: “if a retiree elects to receive a 15 percent partial lump sum, 15 percent of the actuarial equivalent value would be paid as a one-time lump sum payment, and 85 percent of the full annuity would be paid via a bi-weekly payment”. The SPD describes the reduction as actuarial, so the exact monthly cut for a given member should be requested from the Pension Office as an estimate before electing.

A computed example from assumed figures, not a Jacksonville figure: a 15% PLOP on an assumed $400,000 actuarial present value is a computed $60,000. Taken as a direct payment, 20% withholding on $60,000 is a computed $12,000, leaving a computed $48,000. The framework for comparing a lump sum with monthly payments is on pension lump sum versus monthly annuity break-even.

BACKDROP for members with 30 years

“A member who has completed 30 or more years of credited service may participate in the BACKDROP.” “Monthly retirement benefits are determined as of the start of the backdrop period but are not paid until retirement.” “Interest is credited to the backdrop benefit based on the Plan rate of return with a maximum of four percent annually and a minimum of negative four percent annually.” “The maximum backdrop period is 60 months.” On payment: “A BACKDROP payment can be taken as a one-time lump sum (with mandatory 20% federal tax withholding) or as a rollover payment to a tax deferred account, subject to rollover eligibility.”

The one-time transfer to the defined contribution plan

The SPD describes a third election: “active members have a one-time option prior to retirement to convert their entire benefit over to the GEDC”. “Once elected, there will be no future benefit available from the GEPP.” “Election MUST be completed while actively employed.” The warning is the plan’s own: “This election should be exercised with extreme caution and only after thorough review of the benefit provisions and consultation with a financial advisor.”

What is irrevocable and what deadlines apply

On PLOP and BACKDROP the Retirement System says: “Both options are IRREVOCABLE.” “Your benefit can NOT be changed after one of these options is elected.” “These options may not be combined.”

Timing from the SPD: “It is best to make the request 4-6 weeks in advance of your retirement date.” A service purchase has its own deadline: “A member wishing to purchase credited service must make the request to the Pension Office and complete the purchase prior to leaving employment.”

Leaving before retirement: refund, or wait for a vested pension

The path depends on credited service. “Any member who completes five years of credited service has a fully vested right to accrued benefits.” For a member who leaves with under five years, the SPD says the member “is NOT entitled to any retirement benefits from the GEPP except a refund of employee contributions with no interest”. “Once the funds are paid there will be no future benefit available from the GEPP.”

Past five years there is a second choice: the member “is eligible to make application for a vested benefit commencing at age 65 at a 2.5% accrual rate for each year of creditable service”. “A member should apply for a vested benefit within 90 days of leaving employment.”

If a former employee dies before taking anything, the SPD says “Death of a separated vested (or non-vested) member/former employee will result in the return of employee contributions to the surviving spouse”. “If there is no surviving spouse, the employee contributions are paid to the estate.” More on the trade-off is on pension refund versus leaving it.

Taking a refund: what it ends and how it is paid

“RECEIVING OR TAKING A REFUND OF EMPLOYEE CONTRIBUTIONS RESULTS IN A FORFEITURE OF ALL FUTURE GEPP BENEFITS.” No interest is paid, as quoted above, so the amount returned is the contributions deducted from pay and nothing more.

On process: “Refund of contributions will not be made before final active payroll is received and verified by the Pension Office.” “Refund of contributions can be taken as direct payments (with mandatory 20% federal tax withholding) or as rollover payments, subject to rollover eligibility.” “Members considering a refund of contributions should review the provided tax notice, consult with a financial advisor and carefully consider all of the consequences of the decision related to their individual situations.”

A computed example from an assumed $15,000 refund of contributions, not a Jacksonville figure: 20% withholding is a computed $3,000, leaving a computed $12,000 in cash if the refund is taken directly. The final tax can be more or less than the amount withheld. See 20% withholding on a pension lump sum.

Buying service credit

“Members are eligible to purchase up to 10 years of previous full-time service by paying their current contribution rate using their current salary at the time of the request if they did not previously make contributions for that period.” “Payments may be made by (i) lump sum payment, (ii) roll over from another qualified retirement plan, (iii) payroll deductions, without interest, over a period not to exceed five years, or (iv) a combination of these payment options.”

A computed example from assumed figures, not a Jacksonville figure: the FAQ page says the cost is “10 percent of the employee’s current regular salary plus service raises at the time of purchase, multiplied by the months and days of service purchased”. If that salary is read as a monthly salary of $4,000, then 24 months at 10% costs 24 times 10% times $4,000, a computed $9,600. The pages read do not say whether the salary figure is monthly, so the Pension Office prices the purchase. See the pension buyback calculator.

Cost-of-living adjustments and the supplement

“The COLA consists of a 3% increase of the retiree’s or survivor’s pension benefits, which compounds annually.” A retiree or survivor qualifies “if they have been retired for at least 4.5 years as of April 1 of each year”. “The supplement is equal to $5 multiplied by the number of years of credited service.”

A computed example from an assumed $2,500 monthly benefit, not a Jacksonville figure: one 3% COLA adds 3% of $2,500, for a computed $2,575. Because the SPD says the COLA compounds annually, the next year’s 3% applies to the larger figure.

Going back to work, loans, divorce and Social Security

“If a retiree returns to work for the City in a full-time position covered by the GEPP or the GEDC, all retirement benefit payments will cease for the period of re-employment.” The FAQ page adds that “If you previously received a lump-sum payment you will not be allowed to rejoin the Plan as a rehired retiree”.

On divorce, “Qualified Domestic Relations Orders (QDROs) are NOT accepted for payment of benefits to a former spouse or family member.” On Social Security, the members’ summary says “Members of the city’s Pension Plan do not participate in the social security system, except that employees hired after 1986 pay into the Medicare portion of social security”, and the FAQ page says “Social Security benefits may be offset by governmental pensions such as the General Employees’ Pension Plan or Corrections Officers Pension Plan”. Confirm any Social Security effect with the Social Security Administration.

What the IRS adds on tax

A refund or lump sum from a public pension is a distribution, so the IRS rules apply on top of the GEPP’s own. On withholding, the IRS says that a taxable eligible rollover distribution paid to you “is subject to mandatory income tax withholding (generally at a rate of 20%), even if you intend to roll it over later”, and that if you roll it over yourself “you’ll have to add funds from other sources equal to the amount withheld”. The SPD describes a refund, a PLOP and a BACKDROP payment on the same basis, including the 20% federal withholding and the rollover exception. The rollover clock, if the money is paid to you: “you have 60 days from the date you receive it to roll it over to another eligible retirement plan”.

On early distributions the IRS says “the law imposes a 10% additional tax on certain early distributions from certain retirement plans”. Its list of exceptions includes “Distributions made to you after you separated from service with your employer after attainment of age 55” and “Distributions made to a qualified public safety employee from a governmental plan” if the employee separated from service during or after the year they attained age 50 or 25 years of service under the plan, whichever is earlier. Whether an exception fits a particular refund depends on your own plan and facts, so confirm it with a tax preparer before you take one.

Where the sources differ

Two small differences appear between the SPD and the web pages. On the COLA wait, the members’ summary says retirees receive it “4 1/2 years after their group retirement date”, while the SPD says a retiree must have been “retired for at least 4.5 years as of April 1 of each year”. The SPD is the newer and more detailed document, and the Pension Office should confirm which wording applies to a given member.

What this page could not settle

The pages read do not give a dollar or percentage figure for how much a PLOP reduces the monthly benefit; the SPD says only that it is actuarially reduced.
The pages read do not describe a single-life or joint-and-survivor election, a spousal waiver, or a way to name a different survivor.
The pages read do not state a separate survivor rule for BACKDROP retirees or whether a BACKDROP lump sum is added to the base for the survivor.
The pages read do not describe the defined contribution plan (GEDC) beyond its role as the destination of a transfer, or the Police and Fire and Corrections plans.
The municipal code (Chapter 120 of the Ordinance Code) was not read directly; this page relies on the SPD and website summaries of it.
The pages read do not say how Social Security benefits are affected under current federal law; confirm with the Social Security Administration.

Common mistakes

Assuming a choice of joint-and-survivor options exists; the documents read describe one survivor rule, 75% for an eligible spouse.
Electing a PLOP or BACKDROP and expecting to change it; the Retirement System says both are irrevocable and cannot be combined.
Taking a refund of contributions without weighing what ends; the SPD says it forfeits all future GEPP benefits, and no interest is paid.
Expecting a full refund check; 20% federal tax is withheld on a direct payment unless the money is rolled over.
Waiting past the 90 days after leaving to apply for a vested benefit; the SPD says a member should apply within that period.

Find the right next step for your situation

About how much do you have invested? Pick the range that fits; your next step appears immediately below.

About how much do you have invested? Under $100,000 $100,000 to $250,000 $250,000 to $1 million $1 million or more

Sources

City of Jacksonville Retirement System, General Employees’ Retirement Plan Summary Plan Description (April 25, 2024): https://www.jacksonville.gov/getContentAsset/7ef05d61-b817-4dfc-bccd-cf9f41be5600/135b97c9-84fa-4e82-b956-0fbccec4aa1f/GEPP-SPD-20240425-BOT-APPROVED-VERSION.pdf?language=en
City of Jacksonville Retirement System, PLOP & BACKDROP Options (web page, read October 7, 2026): https://www.jacksonville.gov/departments/finance/retirement-system/drop-plop-options
City of Jacksonville Retirement System, A Summary For Members (web page, read October 7, 2026): https://www.jacksonville.gov/departments/finance/retirement-system/a-summary-for-members
City of Jacksonville Retirement System, Frequently Asked Questions (web page, read October 7, 2026): https://www.jacksonville.gov/departments/finance/retirement-system/frequently-asked-questions
IRS, Topic no. 413, Rollovers from retirement plans (irs.gov): https://www.irs.gov/taxtopics/tc413
IRS, Topic no. 558, Additional tax on early distributions from retirement plans other than IRAs (irs.gov): https://www.irs.gov/taxtopics/tc558

Sources: the primary documents linked above, read on October 7, 2026. General information from each system’s own published materials, not legal, tax or financial advice. Your own member statement and the system’s current rules decide your benefit, and a pension counsellor at the system or a fee-only adviser is the right place to confirm anything consequential.

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