|
With the Defined Contribution Plan, a 401(a) account is established on your behalf and your account grows through contributions
from the City of Richmond and earnings from investments you select through investments currently managed by the ICMA Corporation, see
the plan brochure for complete details. Membership in this plan is mandatory for all general
employees, excluding certain employees of the Senior Executive Group, hired or rehired on or after July 1, 2006. This plan is an optional
choice for police officers and firefighters.
You do not make contributions to this plan. The City contributes a percentage of
your salary to your plan account each pay period in accordance with the following
schedule based on your years of creditable service:
- Less than 5 years of service - 5 percent
- 5-9 years of service - 6 percent
- 10-14 years of service - 8 percent
- 15 or more years of service - 10 percent
The benefit is a lump-sum amount equal to your account balance when you terminate City
employment or retire; it may also be payable as a monthly benefit. With the Defined
Contribution Plan, vested benefits are portable if you change employers - this means you
can take the benefit with you if you leave the City after you have satisfied the vesting
requirement of five years of creditable service.
When you terminate employment with the City, you may receive a lump-sum payment, start
receiving monthly or installment payments or leave your account balance in the plan for
later distribution. Distributions are taxed when you receive them based on your tax rate
at the time, unless they are rolled over to another eligible retirement plan or Individual
Retirement Account (IRA).
Upon your death, any account balance is transferred to your designated beneficiary.
If you elected to participate in the 401(a) Defined Contribution Plan, please contact
the ICMA Corporation at 1-800-669-7400 or view the website at
www.icmarc.org.
|