Although you’ve separated from full-time City service, you can continue to benefit from the City’s Deferred Compensation Plan. Our customer service team, investment options, and competitive fees are the same for participants still working and those who have left City service. Keeping your money in the Plan may provide you with better retirement opportunities than rolling your money into another plan or traditional IRA.
Factors to consider before transferring your funds to another provider:
Yes, you can stay - You do not have to move your money out of the City Plan when you retire or terminate employment. You can leave your money in the Plan, and we can help you with your Required Minimum Distributions when you turn 70½.
Low fees - You benefit from “strength in numbers” by being part of a large group plan. With $6 billion in assets, the Plan can negotiate competitive investment and administrative costs, and there are no sales costs associated with any of the Plan’s core investment options. This means that more of your money is working for you in your Plan account rather than going toward fees. To compare our fees against a competing provider, please use the worksheet on the other side of this page as a guide.
Consolidate your retirement savings - You can roll over assets from other before-tax accounts into your Plan account making it easy for yourself by keeping all your assets in one place. Please carefully consider the benefits of existing and potentially new retirement accounts and any differences in features. Please note that assets rolled over from other non-457 plans (such as 401(a)/401(k), 403(b), a traditional IRA) may remain subject to the IRS 10% premature distribution penalty tax.
A wide range of investment options - You have access to a variety of investment choices, including two savings investment options, a bond mutual fund, 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 invest in most New York Stock Exchange, American Stock Exchange and NASDAQ listed stocks, most ETFs, corporate and government bonds, and registered mutual funds including no transaction fee and no-load funds.
Flexible distribution and payout options - 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 against 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!