Catching Up
Imagine the journey to retirement is a race and your goal is to reach a certain savings plateau. The finish line is in sight, but you need a boost. Is help available? There is with Special Catch-Up contributions!
What is Special Catch-Up?
”Special Catch-Up” refers to Internal Revenue Code provisions permitting participants who are within three calendar years of normal retirement age (meaning retirement without a penalty or actuarial reduction in benefits) to defer up to twice the normal contribution limit for three consecutive years. You are only eligible for Special Catch-Up if you under-contributed in prior years of eligibility and have an “unused balance” of contributions. By participating in Special Catch-Up, you are essentially contributing amounts from your unused balance to the City’s DCP as you approach retirement.
Do I need to enroll in Special Catch-Up?
Yes. You must complete a Special Catch-Up enrollment form with a Local Retirement Counselor (you cannot enroll online or through the DCP call center). The Local Retirement Counselor will verify that you have an unused balance available, identify how much you can contribute, and assist you in completing the Special Catch-Up contribution form. Schedule a meeting with a Local Retirement Counselor.
What if I participated in and completed my three years of Special Catch-Up?
If you previously completed participation in Special Catch-Up you are not eligible to do Special Catch-Up again. However, you are still eligible to contribute up to the Age-50 contribution limit.
Special Catch-Up Contribution Limits
Click the link below to find out the contribution limits for this year.