Although you’ve separated from full-time City service, you can continue to benefit from maintaining your account in the City’s Deferred Compensation Plan. Our customer service team, investment options, unique Plan features, and competitive fees are the same for participants still working and those who have left City service. Staying with the Plan provides unique benefits that may be lost if you transfer to an other Plan or traditional IRA.

Factors to consider before leaving the City’s Plan:

  1. Yes, you can stay! In case you’re thinking there’s a requirement to leave the Plan after you retire or separate from service, there isn’t! You can leave your money in the Plan as long as you wish. The Plan can support you with Federally mandated Required Minimum Distributions when you turn 70½.

  2. Special 457 Plan features and benefits are lost when you roll your account to an IRA. As an Internal Revenue Code Section 457 plan, the City's Plan has certain benefits and features that are lost once an account is rolled out to an IRA. For example, 457 plans are exempt from the 10% early withdrawal penalty for distributions prior to age 59½; once your account is rolled to an IRA, withdrawals below the age threshold could be subject to the early withdrawal penalty. In addition, the City's Plan offers a retired participant loan program; the loan option would also not be available to funds which are rolled out to an IRA. 

  3. Our fees stack up well against rollover alternatives. We are exclusively focused on what is in the best interests of our participants. You benefit from “strength in numbers” by being part of a large group plan. With more than $6 billion in assets, the Plan can negotiate competitive investment and administrative costs that typically aren’t available in individual IRAs. Also, the City’s Plan has no sales costs or hidden fees associated with any of our core investment options. To compare our fees against a competing provider, please use the worksheet in the link below.

  4. We offer a “one-stop shop” for consolidating your retirement savings. You can roll over assets from other before-tax accounts (such as 401(a)/401(k), 403(b), or traditional IRA funds) into the City’s Plan, making it easy to manage assets and keep tabs on where your money is invested. Our local counselors provide you with personalized support throughout retirement. We’re also constantly enhancing our services and features—we never stop trying to improve upon better meeting your needs.

  5. We provide investment choices to meet your needs. You have access to a variety of investment choices, including two interest-bearing savings options as well as a core group of bond and stock mutual funds. You can also select from five investment Profile Portfolios based on your investor risk tolerance. For advanced investors we offer the self-directed brokerage option through Charles Schwab & Co., Inc. which provides access to most New York Stock Exchange, American Stock Exchange and NASDAQ listed stocks, most ETFs, corporate and government bonds, and registered mutual funds (including a group of no transaction fee and no-load funds).

  6. We provide flexible payout options, including loans! The Plan provides a variety of distribution options to suit your financial needs, including installment payments and partial withdrawals. You can change your distribution option as many times as needed to meet your needs. You also have the option of taking a loan from your account, helping you accomplish short-term or medium-term financial goals. When you pay back your loan, all interest paid goes back to your account!