This benefit is available for employees who retire at or after age 55, whose age and number of years of service added together equals 80. For example, an employee age 55 with 25 years of service can retire and receive medical insurance coverage. The retiree pays 50% of the insurance premiums and the City pays the other 50%. The employee's spouse is also eligible for this coverage. Once the retired employee is eligible for Medicare, this benefit will stop. At that time, Medicare will become the person's primary carrier and the retiree can buy any other supplemental insurance he/she may choose. The spouse may continue coverage under COBRA rights if eligible.
Employee Savings Plan 401(k)
The City offers its employees the option to contribute to a 401K plan. This allows employees to put their own money away for retirement on a pre-tax basis. The City will match employee's contributions according to their years of service and the amount of the employee contribution. IRS rules will determine the yearly maximum that can be contributed.
In addition, the City will make a contribution in the amount of 4% of the employee's annual salary for each employee who has been employed for the entire plan year (January 1 – December 31) and is actively working on the last day of the Plan Year and completes at least 1,000 hours of service during that year.
Deferred Compensation Plan (457)
The City also offers a Deferred Compensation Plan (457). This plan allows employees to defer a portion of their salary towards investment in their retirement. IRS rules will determine the yearly maximum that can be contributed. Employees who are 50 years of age or older are allowed to contribute an additional $5,500 above the maximum, in what is known as "catch-up" contributions.