FAQs

Deferred compensation allows participants, on a voluntary basis, to defer a portion of their salary, for retirement purposes and is designed to supplement your retirement income.

All employees are eligible to participate and contribute toward the deferred compensation program except temporary seasonal and project employees.

The City offers one plan provider, MissionSquare Retirement for all eligible employees. Local 29 members may select from MissionSquare Retirement, Voya, or the Department of Retirement Systems (DRS) as their provider.

MissionSquare
Matt Barton @ 202-759-7116, mpbarton@missionsq.org, Investor Services @ 1-800-669-7400, or www.msqplanservices.org/myplan/300761

Voya
Payton Gray or Steve Gray, @ 509-455-4010, sgray@purposefinancial.com,
pgray@purposefinancial.com, or www.voya.com

DRS
DRS @ 888-327-5596 or www.drs.wa.gov/login

The minimum contribution is $10.00/payday. DRS minimum contribution is $15.00/payday.

With the Self-Service option available to employees on the PeopleSoft system, they may go online anytime to change their contribution for MissionSquare or Voya, and contribution changes will be effective on the next payroll after the change is made. DRS requires changes to be made through them and contribution changes may take up to 30 days.

Yes, the following matching contributions have been negotiated as follows:

• Mayor/Council: $200/month (split $100/payday the 1st and 2nd payday of each month)
• Local 270: $120/month (split $60/payday the 1st and 2nd payday of each month)
• Local 270-PA: $120/month (split $60/payday the 1st and 2nd payday of each month)
• Local 270-Lib: $120/month (split $60/payday the 1st and 2nd payday of each month)
• M&P-A: $200/month (split $100/payday the 1st and 2nd payday of each month)
• M&P-B: $150/month (split $75/payday the 1st and 2nd payday of each month)
• Lib-Mgmt: $120/month (split $60/payday the 1st and 2nd payday of each month)
• Ex-Conf: $200/month (split $100/payday the 1st and 2nd payday of each month)
• Local 29: $230.33/payday
• SAFO: $230.33/payday
• Police Guild: 4% of base pay/payday
• Lts & Capts: 4% of base pay/payday (Lts); 4% of base pay/payday (Capts)

In order to receive the full match from the City, the employee must contribute at least the per payday amount or the match will be reduced to equal the employee’s contribution. The match from the City will be pre-tax, regardless if the employee contributes to pre-tax or post-tax (Roth).

Yes, but if you contribute more than the matching amount the City will only match up to the amount listed above. If you contribute less than the matching amount the City will match the lesser amount until the employee increases their contribution.

For 2026, the normal deferral is $24,500, the age 50 provision is $32,500, the age 60-63 provision is $35,750 and the Pre-Retirement Catch-Up provision is $49,000.

Yes. You can withdraw funds from your account through the Unforeseen Emergency option or you may take a loan against your account. For specific information and to submit a loan request, please contact your plan provider (refer to contact information above). Loan repayments are made through payroll deduction.

Age 50 Provision – employees can participate in this provision if they are currently age 50 or will turn age 50 in the current calendar year. No paperwork is required to participate in this provision.

Age 60-63 Provision – employees can participate in this provision if they are currently age 60-63 or will turn age 60-63 in the current calendar year. No paperwork is required to participate in this provision.

Pre-Retirement Provision – employees can participate in this provision three consecutive years prior to the year they are eligible to retire. This provision is based on a calendar year and allows employees to “catch-up” for contributions not deferred in previous years. This requires the employee to submit a “Declaration of Retirement Age” form declaring the year they will attain a certain age. Those employee’s that want to start contributing toward the Pre-Retirement Provision need to contact their plan provider for assistance.

Yes, up to the annual maximum amounts. The department payroll clerk can assist employees in calculating payout amounts. Employees need to complete the Deferred Compensation Payout Form located on HR’s SharePoint site and submit to the Retirement Department no later than the Friday before the employees last paycheck. (See union contract for eligibility)

Withdrawal information can be obtaining by contacting your plan provider.

Individuals are required to start receiving distributions the year they turn 72 years of age. There is no requirement to withdraw your funds from the City’s 457 plan before that time.

No. You may terminate employment at any age and start withdrawing funds from your deferred compensation account with no penalty; however, you will pay 20% taxes on the money that is withdrawn that calendar year. If you have rollover assets from a 401(a), 401(k), 403(b), or Traditional IRA in your 457 plan, those assets may be subject to the 10% early withdrawal penalty if withdrawn prior to age 59½.