Explanation of Various Benefit Plans -
401(a) Plan – is a defined contribution plan for primarily newer Management Union Members and certain other non-certified staff. This plan replaced the traditional defined benefit pension plan for these employee classes. Management employees who were previously participants in the defined benefit pension plan remain in that plan. Questions about this plan may be addressed at one of the planned meetings or by calling the City’s Pension and Benefits Office. The employee contributes 5% of salary and City matches it. The City’s contribution vests after five years.
457 Plan - All city and education employees are eligible for this voluntary deferred compensation savings plan. Employee can contribute up $16,500 annually, more if you are over 55. There is no City match. If you change employers you may roll this over to an IRA.
403(b) Plan – this is for education employees only. You must work more than 1,000 hours per calendar year. There is a tax deferred or an after-tax option (Roth) within the plan. There is no city match in this plan. Employee can contribute up $16,500 annually, more if you are over 55. You can only roll your money over to an IRA if you experience an IRS eligible event (i.e.. retirement – for others talk to a MetLife Representative). There are provisions for a hardship withdrawal or loan.