Deferred Compensation

A few notes about deferred compensation from the September 10 meeting about deferred compensation:

1. Here is the language about deferred compensation from our contract:

ARTICLE 24 – DEFERRED COMPENSATION

24.1 Effective January 1, 2006, employees with at least one year of service will be eligible for a $100.00 Deferred Compensation match by the Employer subject to the criteria listed below. Effective January 1, 2008, the Deferred Compensation match shall be increased to $250.00 per year.

24.2 Eligibility and Implementation:

24.2 (1) For initial match, employees must have been employed for a minimum of one (1) calendar year.

24.2 (2) Employees must be a member of the bargaining unit for a minimum of one (1) calendar year.

24.2 (3) Employees must have made their complete contributions by December 31st of the previous calendar year.

24.2 (4) City matches will be made by April 1 of the following year.

24.2 (5) Employees must be on the payroll as of the date of deferred compensation match.

24.2 (6) If an employee takes a leave of absence to serve as a full-time union official, time served in such capacity, up to six (6) years, will be counted toward the years of service requirement.

2. If you make the minimum contribution of $10 per pay period, in a year, you will save enough to get the $250.00 from the City.

3. If you are under 50: you may contribute up to $15,500 per year. If you are 50 or over: you may contribute up to $20,500 per year. These limits are set annually by the Federal government.

4. Currently, you can enroll either with ING or with the Minnesota Deferred Compensation Plan.

5. You can get more information on p. 75-80 of the 2008 benefits booklet at: http://stpaul.gov/DocumentView.asp?DID=2124 or at the open enrollment meetings.