A New Way to Look at Your Deferred Compensation Plan Contributions - Try Our New Contribution Calculator!
The City’s Deferred Compensation Plan wants you to have a secure retirement. Our mission is to help you achieve 100% replacement of “lifestyle income” upon retiring. Lifestyle income is your gross salary at retirement less the contributions you make to your primary and supplemental retirement plans. Replacing 100% of lifestyle income essentially means maintaining your standard of living when you retire.
To get there requires participating in the Deferred Compensation Plan – your City retirement/pension plan can’t do it alone - and contributing a sufficient percentage of your gross salary.
Here are some important facts to be aware of:
- 70% of employees participate in the Deferred Compensation Plan.
- On average, participants contribute approximately 5% of pay to the Plan in their first five years of contributing.
- On average, participants gradually move towards contributing 10% of pay as they move towards the end of their careers.
- Contributing at least 2-10% of pay over a full City career is an important key to meeting the 100% lifestyle income replacement objective.
For a deeper dive, you can also check out our Retirement Income Replacement Calculator.
If you're not currently a Deferred Compensation Plan participant, now is the time to begin. Visit CityofLA457.com to learn more and enroll!