Comparison of Plan Features
|
|
Defined Benefit Plan |
Defined Contribution Plan |
|
City Pension Contribution |
Amount determined by actuary (not individually owned) |
11.7% |
|
Employee Pension Contribution |
9.7% (pre-tax) |
7.7% (pre-tax) |
|
City Disability Contribution |
0.3% |
0.3% |
|
Employee Disability Contribution |
0.3% (pre-tax) |
0.3% (pre-tax) |
|
Investment Decisions |
Made by Pension Board of Trustees |
Made by Individual Employee |
|
Vesting Schedule |
100% vested at end of 5 years |
25% vested at end of 2 years |
|
Portability |
May transfer employee-only contributions (no earnings) to another qualified plan pre-tax or take as taxable income once employment ends. After vested, may receive pension benefit at age 65 |
Can transfer all vested monies at the Vesting Schedule rate (including earnings) to another qualified plan pre-tax or take as taxable income. |
|
Benefit Receipt |
Benefit amount varies for each individual and is determined by retirement age & service requirements, e.g., 50% benefit at age 55 with 20 years service or 80% benefit with 32 years service (any age) |
Employee controls amount and timing of funds distribution after employment ends (in accordance with Internal Revenue Code provisions) |
|
Survivor Benefits |
Eligible survivor(s) will receive 75% benefit in accordance with plan provisions |
Survivor(s) inherit all remaining funds. |