Benefits Book 2018

201 8 Benefits Book

Deferred Compensation

T he programs below offer additional retirement savings opportunities for the employees to contribute their own money on a pre-tax basis. The City contributes to the 401(a) and 401(k) plans.

401 (a) General Employees

photos submitted by Jodie Stanley

• The City contributes 3.25% of base salary to the plan, before Social Security is deducted. • Eligibility begins the first payroll following 30 days of employment. Firefighters • The City contributes 3.25% of base salary. • If the firefighters’ contribution is 1.75%,

Limitation • Yearly maximum contributions set by the IRS are allowed in addition to contributions to the 457 plan only under separation of employment. • Investment changes can be made any time.

then the City will match the contribution up to a total of 5% (5% is inclusive of the 3.25% City contribution).

Withdrawals • Withdrawals are only permitted at termination, retirement, or death.

• There is an early withdrawal penalty prior to age 59 ½ unless the employee retires at age 55 or on disability. • Minimum distribution to the participant must begin at age 70 ½.

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