Retirement

Deferred Compensation Plans: 401(k) and Supplemental 457

• Deferred compensation is a way to save for retirement
• Deferred compensation lets you set aside money pre-tax, after-tax or both
• You may participate in these plans as soon as you begin working for the Town
• You are always 100 percent vested in the amounts you contribute and the investment earnings
• Vesting is incremental, based on years of service, with full vesting occurring at 5 years, for Town contributions

401(K) Deferred Compensation Plan

• The Town makes a basic contribution of 6 percent to your 401(k) account each year
• Town matches 100 percent of the first 4 percent you save on a pre-tax basis
• Town matches 50 percent of the next 4 percent you contribute
• Employees have the opportunity to receive Town matching contributions on the first 8% of pay saved

Designated Fire Rescue employees are required to take part in the Police Officers Retirement System (PORS)

• Contribution Rates for new hires are 9.75 percent of pay for the employee and 20.84 percent for the Town
• You are entitled to receive a future retirement benefit after five years of service for employees hired before July 1, 2012; and after eight years of service for those hired July 1, 2012 or after
• You are always 100 percent vested in your own contributions
• If you choose to waive your retirement benefit and withdraw your contributions and interest, you lose the Town's contributions
• Upon retirement, you will receive a monthly pension based on your salary and years of service
• PORS participants can save additional money for retirement by contributing to the Town's 401(k) or 457 Plans, though the town will not match contributions

Designed to provide retirees with support for payment of retiree medical expenses and encourage reduced use of sick leave by employees.

• Annually, the Town will defer into individual employee Retirement Health Savings accounts 100 percent of the value of forfeited sick leave (hours in excess of the cap as of December 31)
• Upon retirement, 100 percent of the value of remaining sick leave will be contributed to the retiring employee's Retirement Health Savings Account

  • This account may be used for eligible reimbursable medical expenses

• Upon retirement from the Town, this account may be used for eligible reimbursable medical expenses
• Employees who terminate employment prior to reaching retirement eligibility will forfeit employer contributions made to their account

Retiree health, dental and vision benefits may be available to eligible employees

• Eligible retirees may enroll for benefits through the State Plan provided they retire under one of the following conditions:
• Police Officers' Retirement System
• Hired before July 1, 2012, are age 60, with the last 5 years of employment served consecutively in a full-time, permanent position.
• Hired after July 1, 2012, you must be age 60 with at least 8 years of service with the last 5 years of employment served consecutively in a full-time permanent position
• The cost for retiree coverage is equal to the active employee premium plus the employer premium or 100% of the cost of coverage