Q. What’s the difference between my retirement plan and the Deferred Compensation Plan?
A. Your retirement plan is a program you’re required to participate in, while the supplemental Deferred Compensation Plan is optional. Your retirement plan’s benefits are based on your years of service, salary, and other factors. Your Deferred Compensation Plan benefits are based simply on how much you accumulate in your account. Both programs provide sources of income which supplement one another in your retirement years.
Q. Why should I participate in the Deferred Compensation Plan if I’m already required to participate in a retirement plan?
A. Retirement plan benefits generally do not replace your full salary upon retirement. Participating in the Deferred Compensation Plan provides an opportunity to accumulate additional retirement savings to supplement your primary retirement plan income. This helps you to avoid a reduction in your standard of living when you retire.
Q. How do I find out which retirement plan I’m a member of?
A. Your paystub indicates a deduction for the retirement plan you’re a member of. In general, note the following:
Q. Does the City contribute anything to my retirement?
- Full-time civilian employees are members of the Los Angeles City Employees’ Retirement System (LACERS)
- Full-time sworn Police Officers and Firefighters are members of the Fire & Police Pensions System (LAFPP)
- Full-time employees of the Department of Water and Power are members of the DWP Retirement Plan
- Part-time, temporary and seasonal workers are members of the Pension Savings Plan (PSP)
A. The City makes contributions to the retirement funds but not to the Deferred Compensation Plan. Contributions vary by retirement plan.
Q. As a City employee do I also participate in Social Security?
A. No. City employees do not contribute to Social Security and therefore do not accrue Social Security benefits from City employment.
Q. If I have outside retirement assets, can I combine them with the City’s benefits?
A. You may be able to combine assets, depending on the type of assets you have. If you have worked with another government agency you may be eligible to purchase service credit with your retirement plan – you should contact the retirement plan to see if you’re eligible. If you worked for an employer with a 401(k), 403(b), 457 or similar deferred compensation plan, or have Individual Retirement Accounts (IRAs), you may be able to roll those assets over to the City’s Deferred Compensation Plan.
Q. When can I retire?
Retirement ages vary by plan. Within a particular plan, there may also be different “tiers” of benefits which apply to different groups of employees, depending upon date of hire. You should contact your retirement plan to find out which tier you’re a member of and specific details regarding retirement eligibility dates. Contact information is at the bottom of this page.
Q. How do I enroll in the Deferred Compensation Plan?
A. You can enroll by contacting the Plan Administrator at (888) 457-9460, obtaining enrollment materials via the Plan website at www.cityofla457.com, or visiting during regular office hours in City Hall (200 N. Spring Street), Room 867, Monday through Friday from 8:00 a.m. - 4:00 p.m.