What is the maximum I can contribute to my Deferred Compensation Plan?
For the calendar year 2008:
- If you are under the age of 50 you may contribute up to $15,500.00.
- If you are over the age of 50 or will turn 50 in the calendar year you may contribute up to$20,500.
These amounts include your city contribution if applicable.
What is the three year "Catch-Up" provision?
This provision allows you the opportunity to make additional contributions to your deferred compensation account to make up for years you did not contribute the maximum amount. You are required to use the provision beginning three years prior to your declared retirement age, and may not start in the year you are retiring. Forms can be obtained from the Benefits Division. Benefits Staff will verify your eligibility to participate in the plan and the amount that you will be allowed to contribute.
How often can I change my contributions?
You can change, stop and start deferrals anytime of the year.
Can I change my provider during the year?
Yes, you can change providers anytime of the year, however, be aware that certain investments are not allowed to be transferred to the new provider until they reach maturity. Your Deferred Compensation Representative can assist you with your transfer.
- Great West - Tracy Greaves, 1-800-933-9808
- ICMA - Ryan Nakatani, 1-800-735-7202 ext. 5907
Can I contribute to both providers?
Yes, however the annual maximum contribution will not be increased. Please see "What is the maximum I can contribute to my Deferred Compensation Plan?"
Can I withdrawal money while I’m employed with the City?
In order to withdrawal funds from your voluntary deferred compensation account while still employed you have the option to:
- Request an Emergency Withdrawal (must be approved according to IRS guidelines; contact the Benefits Division for details)
- Request a loan against your account. (See "Can I take a loan against my account?")
How do I liquaidate my account after I leave employment?
Once you have left employment with the City you may withdraw any or all of your funds from your account. Forms are available at Human Resources, and should be turned into the Benefits Division for processing. Please be advised that tax implications will apply.
Can I take a loan against my account?
Yes. You may borrow up-to one half of your available funds with a minimum loan amount of $2000.00. The interest you pay on this loan is deposited back into your account. You can take up to five years to repay the loan through payroll deduction.
Contact the Benefits Division for details on how to apply for your loan.
Can I use the funds in my Deferred Compensation account to purchase years of service or Air Time from PERS?
Yes, once you have the final purchasing documents from PERS contact the Benefits Division for an appointment to complete the paperwork. Make sure to make your appointment early to allow sufficient processing time.