Here's your DCP Summer Checklist!

Just because you have left City service doesn’t mean you aren’t still part of the City of Los Angeles Deferred Compensation Plan (DCP)! It's important to stay on top of key aspects related to your retirement savings. This summer, make sure you address important tasks such as understanding changes to Required Minimum Distributions (RMDs) resulting from the SECURE 2.0 Act, establishing or updating your account beneficiaries, prioritizing cybersecurity, and registering for the next Money Matters Session on August 16. Let's dive into each topic in detail:

Be aware of changes in Required Minimum Distribution (RMD) age:

One of the most impactful changes from the SECURE 2.0 Act (“Secure 2.0”) that became effective on January 1, 2023, was the increase in the RMD beginning age from 72 to 73, for participants attaining age 72 after December 31, 2022. If you turn 73 any time after December 31, 2022, and are not employed by the City of Los Angeles, you must take your first RMD by April 1st of the following year after you turn 73. You will also need to take another RMD by December 31st of that year and by every December 31st thereafter. If you have not proactively taken any distributions, the DCP will automatically disburse this amount to you. Visit the RMD FAQ page for additional details about RMDs. As additional provisions of the SECURE 2.0 Act are phased in, stay up-to-date by visiting the DCP’s SECURE 2.0 Act homepage.             

Establish or update your account beneficiaries:

One of the most important tasks for DCP participants is to establish or update their account beneficiaries. Life is unpredictable, and having designated beneficiaries ensures that your retirement savings will be distributed according to your wishes. Take the time to review and update your beneficiary designations, ensuring they accurately reflect your current intentions. Visit the Beneficiary page for more information, review the Beneficiary Guide, or call us at (844) 523-2457.

Get familiar with Cybersecurity best practices:

Keeping your financial accounts protected is a top priority in today's digital world and protecting your DCP account is crucial to safeguarding your retirement savings. Here are some reminders and industry best practices to follow:

  • Register your DCP account online: Establish a unique username and password at LA457.com. Please also regularly check your recent transactions to help identify any unusual activity.

  • Use strong, unique Passwords: Create complex passwords and avoid using the same password across multiple platforms. Consider using a password manager to securely store your passwords.

  • Multi-Factor Authentication (MFA): In an ongoing effort to provide enhanced protection for your DCP account, you may notice that upon logging into your account from your desktop computer or through the mobile app, you will receive a one-time passcode sent to your mobile phone number to authenticate that the correct person has logged in. This is known as Multi-Factor Authentication (MFA). If no mobile number is on file for your account, you will be prompted to provide one. 

  • Be wary of phishing attempts: Be cautious of suspicious emails, messages, or phone calls asking for your personal information or login credentials. Avoid clicking on unfamiliar links and only provide sensitive information on trusted and secure websites.

REMINDER: Note that the DCP will never ask you to withdraw and/or transfer funds to an external account for any reason. If you detect any suspicious activity or receive any suspected fraudulent text messages, emails, or phone calls, please immediately notify us at LA457@lacity.org or by calling our Service Center at 844-523-2457.

For more detailed guidance on cybersecurity, consult reputable sources such as the U.S. Department of Labor’s Online Security Tips (Online Security Tips (dol.gov).

Register for the August Money Matters Session:

What do you need to know as a retiree or someone who has separated from City service? Join us for the next Money Matters session on August 16 at 12:00 p.m. to learn about distributions, Required Minimum Distributions (RMDs), designating beneficiaries, and other best practices to help beneficiaries. Register here.

This summer, make sure you prioritize these key tasks that will help you keep your DCP account safe, secure, and working hard for you. Stay informed about future implementation of SECURE 2.0 Act provisions, update your account beneficiaries, adopt cybersecurity best practices, and register for the upcoming August Money Matters session. By checking off these items from your summer checklist, you can feel good about enjoying the moments this summer that matter most.

Drew Russell