Maximizing Contributions as You Retire
Accrued Leave Deferral Option
The City’s Deferred Compensation Plan allows employees to make contributions to their accounts from “accrued” (meaning, unused) leave that is paid out upon retirement. Civilian and sworn employees can make contributions from accrued sick leave, vacation time, and overtime. Department of Water and Power 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.
- 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 enough to cover your elected contribution, the payroll system will automatically take the smaller amount.
A local Retirement Counselor can help you 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.
- The amount you are then eligible to contribute.
To speak to a local Retirement Counselor, please call (213) 978-1601 or visit our City Hall Service Center in Room 867!