by Beth Mangold and Angela Vigil
New retirement plan options for positions covered by the General Employees Pension Plan became effective on October 1. Employees now have more choices when selecting their city retirement plans.
Perhaps the biggest change is that the medical process was abolished. This means that employees who did not enter the pension plan because of medical issues when they were hired may now join as a regular member. Members who joined the plan under a medical waiver will no longer be limited by the waiver.
Another attractive change to the plan is the introduction of a Defined Contribution (DC) plan, similar to a 401(k) plan. Under this option employees can contribute 7.7 percent of their pay to an investment account and the city will match their contributions. These investment accounts will be managed by Great West Retirement Service, who also administers the deferred compensation (457) plan.
The new pension laws (governed by Ordinance 2007-1136) provide an opportunity for current Defined Benefit (DB) plan members to change to the DC plan. This is a one-time option for current employees. New Employees hired after October 1 will select their pension plan upon employment - either the traditional DB plan or the new DC plan. Both plans will be covered by a disability trust fund, which is essentially the same disability program that was offered with the original DB plan.
Employees who are not currently enrolled in a city sponsored plan are encouraged to contact the Retirement System Administrative Office to set an appointment to review plan options and make an enrollment selection. Once a plan selection is made, employees will be enrolled in the selected plan for the next practical payroll.
For additional information regarding the new pension options, please check the links below.
Retirement Systems Employee Portal pageQuestions on Plan ComparisonsRead the new pension ordinancePension Plan training is in development. Watch for an announcement from Retirement System Administrative Office when it is available.
If you have immediate questions or would like to make appointment with Retirement System staff to review the plans and enrollment options, please contact Beth Mangold or Judy Connare 255-7281 in the Retirement System Administrative Office at 255-7285.