If you have savings and investments in another retirement plan, you may be able to roll over those funds into the Deferred Compensation Plan (DCP). A rollover, if made directly from your former employer’s plan to the DCP, is not considered a taxable event if conducted in accordance with IRS rules. If the rollover is not a taxable event, the transaction itself will be reported on an IRS Form 1099-R reflecting the distribution and rollover out of your former employer’s plan.
You might consolidate your retirement savings in the City’s Deferred Compensation Plan if you are interested in the following:
A clearer picture of your retirement savings.
Your retirement savings all invested in the same fund(s) that align with your risk tolerance and investment strategy.
The simplicity and convenience of managing one account using one website and a designated representative team to assist you with your needs.
The possibility of saving on fees by combining separate accounts into one.
Funds from Other City Retirement Systems
Funds from Other Employer-Sponsored Plans
401(a), 401(k), 403(b), and governmental 457(b) plans are all eligible employer-sponsored retirement plans that qualify for rollover into your DCP account. If you’d like to proceed with a rollover, please follow the steps below:
Fill out and submit a Rollover/Plan Transfer Contribution Form.
Contact your previous provider to initiate a rollover (you may need the DCP to sign off or provide a letter).
Contact a DCP Local Retirement Counselor if you have questions or need any assistance.
Pension Savings Plan (PSP)
If you previously worked for the City in a part-time capacity, including academy and drill tower time, your retirement savings were contributed to the PSP. Once you are eligible to contribute to the DCP and establish a DCP account, you can rollover your PSP funds into your DCP account. Download the form and contact a Local Retirement Counselor to begin the rollover process.
Deferred Retirement Option Program (DROP)
Sworn officers exiting the DROP may roll a portion or all of their DROP funds into the DCP. There is no age requirement for rolling money in. However, rollovers may be subject to a 10% early distribution penalty if withdrawn before age 59½. Contact a Local Retirement Counselor for more information on rolling DROP funds into the DCP.