A grand jury refused to file charges against Loehmann and Garmback in December 2015.
Garmback was suspended for 10 days for violating a tactical rule for his driving that day, with a disciplinary letter saying he drove too close to Tamir. He said both officers were disciplined for violating department rules.
Cleveland police previously confirmed to News 5 that they did not review Officer Timothy Loehmann's personnel file with Independence police before hiring him.
Earlier this year, the 911 dispatcher who took the call that led to the shooting was suspended for eight days for failing to tell the dispatcher who sent the officers to the rec center that the man who called 911 about "a guy" pointing a gun at people also said it could be a juvenile and the gun might be a "fake".More news: Tiger Kills Zookeeper in England
Tamir's mother, Samaria Rice, expressed mixed feelings about the discipline.
The final decision to fire Loehmann was made after what Cleveland's Mayor Frank Jackson deemed an "exhaustive process" of investigation.
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Mr Loehmann was still in his six-month probationary period when the shooting happened.
The settlement carried no admissions of any wrongdoing. Investigators say surveillance shows Tamir reaching toward his waistband and lifting up an outer garment.
"We still need accountability... he should have never been an officer in the first place".More news: Trump sides with French victor , at least now
He said the police department had changed its training and policies as a result, and that the use of deadly force had fallen.