Deferred Compensation Plan Vs 401k In Philadelphia
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Retirement benefits are subject to federal income taxes; however, retirement benefits are not subject to Pennsylvania state and local taxes. By law, PMRS must calculate federal tax withholding from your monthly benefit, assuming that you are single with no other sources of income.
Basic Formula For most SERS members, that's 2.5% of their final average salary for each year of credited service, but this can change depending on your class of service. Divide the annual amount by 12 for the monthly pension amount.
For each year, month and day of credited service, the benefit is 3.5% of average final compensation. Average of their 2 highest years of pensionable earnings. Take the 2 highest salary years (they need not be consecutive, nor must they be the last 2 years) and divide by 2.
Additionally, you can call the City of Philadelphia Deferred Compensation Customer Service Team at 855-550-1777 or complete a Contribution Change Form (PDF) (PDF).
A typical multiplier is 2%. So, if you work 30 years, and your final average salary is $75,000, then your pension would be 30 x 2% x $75,000 = $45,000 a year. That $45,000 becomes your guaranteed lifetime income.
For New York State Plan forms, brochures or account information, go to the Plan's web site or contact the HELPLINE at 1-800-422-8463.
Philly311 contact center The contact center answers calls to 311 from 8 a.m. to 8 p.m., Monday through Friday. If you're outside of Philadelphia, call (215) 686-8686.
Municipal (civilian) employees are eligible to retire at age 60 after having completed 10 years credited service.
The Deferred Compensation Plan also known as a 457(b) is a voluntary retirement savings plan offered by the County to enable employees to save for their future on a tax deferred basis. If you participate in the deferred compensation plan, you contribute biweekly payroll deductions to a retirement account.
