Employee- As a Tier 1 or Tier 2 member you contribute a portion of your salary, through payroll deductions to the pension plan. Effective March, 1993 these payroll deductions are made on a pre-tax basis in accordance with Section 414(h)(2) of the Internal Revenue Code. The amount you contribute is based on your age at entry, and the retirement plan you selected. You may elect to invest your contributions in the Fixed or Variable investment programs.
As a Tier 4 member you are required to contribute a portion of your salary, through payroll deductions to the pension plan. Effective July, 1989 these payroll deductions are made on a pre-tax basis as authorized by Section 414(h)(2) of the Internal Revenue Code. The amount you contribute is equal to 3% of your annual wages. You may only elect to invest these contributions in the Fixed program.
See 55/25 or 57/5 and TDA for other employee contributions.
Employer- Tier 1 and 2 members also receive contributions paid by the City, known as Increased-Take-Home-Pay (ITHP). The ITHP rate is 2%. You have the option of reducing your contribution rate by 2% thereby increasing your take home pay. You may also elect to waive your ITHP rate, allowing you to contribute at the higher deduction rate, resulting in a greater benefit at retirement.
See 55/25 or 57/5 for other employer contributions.
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