Voluntary Deferred Compensation Plans
A Deferred Compensation Plan permits you, on a voluntary basis, to authorize a portion of your salary to be withheld and invested for payment to you at a later date. These salary deferrals, or “contributions”, are allocated to the Plan’s investment choices at your instruction. Neither your contributions nor any investment earnings are subject to current federal and (in most cases) state income taxes. Taxes become payable when the deferred income plus earnings are distributed to you - generally at retirement, or separation from employment.
In today’s environment, it is widely accepted that in order to have a comfortable retirement, you must rely on income sources other than your pension or Social Security. The City’s voluntary deferred compensation plan is an important and valuable means for preparing for your retirement and supplementing your TMRS plan.
Additional information regarding the City’s voluntary deferred compensation plans can be obtained from Human Resources.