Your ability to retire is very import to the City, and to make sure your retirement years are successful, the City offers a full range of benefits.
In order for you to have enough resources in retirement, the City provides three different retirement options.
- Denver Employee's Retirement Plan (DERP)
- Social Security
- Deferred compensation (or 457 Plan)
All permanent employees are automatically enrolled in the Denver Employee's Retirement Plan (DERP), also known as the Plan. The Plan is a pension plan which provides a lifetime monthly retirement benefit for all vested City Employees.
In general, you are eligible to receive these benefits after 5 years of continuous service and upon reaching the age of 65. The benefit varies based on your salary and length of service.
As of January 1, 2013, the City and County of Denver and DHHA contribute 11% of the employee’s total gross salary to the trust fund, and the employee contributes 7% of his or her total gross salary. These contributions are made on a pre-tax basis through payroll deductions.
The lifetime monthly benefit you will receive from the Plan is intended to provide a portion of your retirement income. Please visit www.derp.org
to read more about the Plan.
Both you and the City contribute to Social Security. The benefit for social security varies. Visit www.socialsecurity.gov
for more information.
Deferred Compensation (457 Plan)
The deferred compensation plan, or 457 plan, is the City’s voluntary retirement savings plan (similar to a 401(k) plan in the private sector). Deferred compensation is a way for you to set aside money via payroll deduction on a pre-tax basis to save for retirement and defer (or delay) paying any taxes on the money you invest, as well as, any earnings from those investments.
Unlike some 401(k) plans, the City does not match employee 457 plan contributions.
Investing in a 457 plan for your future happens through payroll deductions. You decide how much to contribute and can contribute as little as $10 per check or up to 100% of your total pre-tax pay. However, your contributions cannot exceed the annual contribution limits.
2013 Annual Contribution Limits:
Some of the benefits of investing in a 457 plan are:
- Under 50: $17,500
- 50 catch-up: $23,000
- Pre-retirement Catch-up: $35,000
- the pre-tax deductions lower your taxable income
- you are taxed on this money when you retire and are more likely to be in a lower tax bracket
- the convenience of automatic payroll deductions
- Unlike a 401(k) or 403(b), there is no 10% penalty for withdrawal before the age of 59 1/2 (although the withdrawal is subject to ordinary income taxation). This means you have immediate access to the funds if you leave the City for any reason.
- You may enroll, increase, decrease your contributions at any time.
For more information on the City's 457 Deferred Compensation Plan, please visit the Deferred Compensation Committee webpage.
For the remainder of 2013, the City will continue to use the following two deferred compensation plan administrators, each of whom has multiple investment options from which you can choose. If you elect to participate, you will enroll with one of these two third-party administrators: Hartford Insurance (Cooney and Associates) or ICMA-RC.
ICMA Retirement Corporation
Phone: (303) 861-7457
Toll Free: (800) 669-7400
Fax: (303) 861-2781
PLEASE NOTE: As of January 1, 2014, all City employee deferred compensation accounts will automatically transfer from the 2013 providers (Cooney and ICMA) to the City's new provider, TIAA-CREF. To learn more about this transition please see this Transition Guide.
Please forward completed forms to OHR Benefits for processing. You may send completed forms by scan to email@example.com, fax to (720) 913-5548 or through interoffice mail: OHR Benefits, Webb Bldg., Dept. 412.