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Other Programs
401(A) DEFINED CONTRIBUTION PLAN
The 401(a) Defined Contribution Plan allows an additional opportunity to tax shelter
contributions on a pre-tax and after-tax basis, governed by the Internal Revenue Code (IRC) 415.
The 401(a) is a long-term supplemental retirement savings plan.
Only designated eligible groups of employees can participate in the plan. The pre-tax
contribution is a fixed mandatory contribution. An after-tax contribution is on a voluntary basis.
In addition, the City contributes a fixed 2% to the eligible group of employees.
The contribution limit is higher for this plan. The annual maximum contribution includes the
mandatory pre-tax contribution, the voluntary after-tax contributions, and the City’s
contribution.
2018 contribution
Up to current IRS annual limit
Who is Eligible
Only newly hired management employees are eligible to participate. There is a 60-day election
window from your date of hire. Your election to enroll or not is irrevocable, and becomes
effective at the end of the election window.
When Can You Make Changes to Your Benefits
The mandatory pre-tax contribution cannot be changed. In addition, you cannot cease to
participate once you are enrolled. If you elect not to participate during the 60 day election
period, you cannot enroll in the future. Participation is an irrevocable decision.
You may change your voluntary after-tax contribution anytime.
If you elect not to participate in this plan, or before you enroll in the 401(a) plan during the 60-
day waiting period, the 2% City contribution will be made to your 457 plan.
Provider
ICMA Retirement Corporation is the sole provider of the 401(a) plan.
If you have questions regarding the Deferred Compensation Plan, please contact the
Department of Human Resources at (408) 730-7490.