The Plan allows employees to make contributions to their accounts from “accrued” (meaning, unused) leave they receive upon retirement. Civilian/sworn employees can make contributions from accrued sick leave, vacation time, and overtime. DWP employees can contribute from accrued vacation time and overtime.
Here are some key facts:
Contributions can be made up to the individual’s applicable annual contribution limit (meaning, the separate limits that apply to those below age 50, those over age 50, and those enrolled in Catch-Up).
Contributions can be made on either a pre-tax or after-tax (Roth) basis.
Contributions are taken directly from your accrued leave payment.
Your contribution designation does not need to be exact; if your final accrued leave payment is less than you anticipated and not enough to cover your elected contribution, the payroll system will automatically take a smaller amount.
You will need to work with a local Retirement Counselor to enroll in this program. The local counselor will help you determine:
The approximate amount of accrued leave you will be receiving;
The approximate date your payment will be received;
The annual limit that applies to you for the calendar year of the deferral; and
The amount you are then eligible to contribute.
Please note: You will need to contact your department’s payroll for a more accurate estimate of your accrued leave payment amount and payment date. Individuals not currently enrolled in the Deferred Compensation Plan are eligible for this program, but they must enroll as part of this process. Enrollment in the Plan and elections to participate in the Accrued Leave Deferral Option must occur no later than the month prior to the date you receive your accrued leave payment and prior to your actual termination date.
For further information or to enroll, please feel free to stop by the Plan Service Center located at City Hall, 200 N. Spring Street, Room 867, Monday through Friday from 8:00 a.m. to 4:00 p.m. You may also speak to a local representative at (213) 978-1601.