Retirement Benefits
Texas Municipal Retirement System
The City of Arlington does not pay into Social Security . In lieu of those benefits , the City provides retirement benefits for employees working in positions budgeted for at least 1,000 hours and above through TMRS . The City matches the employee ’ s 7 % contribution ( required pre-tax automatic deduction ) at a two-to-one match .
The City of Arlington has also chosen to provide Supplemental Death Benefits for members and retirees . Survivors of active employees receive an additional benefit approximately equal to the employee ’ s annual salary . The Supplemental Death Benefits paid to a retiree ’ s beneficiary is $ 7,500
\ www . icmarc . org / arlington-tx
Additional retirement plan information is included on the HR Portal under Documents and Forms , Category : Retirement-401 ( k ) and 457 be withdrawn tax-free if requirements for a qualified distribution are met . You are always 100 % vested in your contributions .
For both the 401 ( k ) and 457 plans , enrollment kits are available from Human Resources and ICMA-RC representatives are available to assist you with enrollment and investment fund details . You may sign up to contribute to these accounts at any time AND make changes to your contribution amount at any time during the year . Enrollment and contributions changes may be completed at www . icmarc . org / arlington-tx .
401 ( k ) Thrift Savings Plan
The City of Arlington is one of few cities in the state that offers a 401 ( k ) plan as part of retirement plan options . This is a voluntary retirement program and you may contribute up to $ 19,500 , for the 2020 plan year , if you are younger than 50 . If you are 50 and up , you may contribute up to $ 25,000 in 2020 . The City matches 50 % of your contributions up to 6 % or your base salary , which is equivalent to a maximum match of 3 %. The City will not go over a 3 % match . You are 100 % vested in our contributions and the City ’ s vesting schedule is as follows :
|
401 ( k ) Vesting Schedule |
|
Year 1 …..…. 0 % |
Year 3 ………. 40 % |
Year 5 ………. 80 % |
Year 2 ….... 20 % |
Year 4 ………. 60 % |
Year 6 …….. 100 % |
457 Deferred Compensation Plan
The City of Arlington offers a voluntary 457 deferred compensation that can provide additional savings for retirement . This plan allows employees who retire before age 55 to avoid the 10 % penalty , and the pre-tax option within this plan lowers taxable income at the end of the year . The post-tax Roth option allows contributions on an after-tax basis . Contributions and earnings can
Age 50 Catch-Up Contributions
Beginning in the year you reach age 50 , you may make additional “ catch-up ” contributions to eligible employer retirement plans and IRA ’ s .
• $ 6,500 over the regular $ 19,500 contribution limit for 2020 , to both a 401 ( k ) plan and a 457 deferred compensation plan , for a total of $ 25,000 to each plan
• $ 1,000 over the regular $ 6,500 limit to an IRA , for a total of $ 7,500 for plan year 2020
To begin “ catch-up ” contributions , please fill out the ICMA-RC 401 ( k ) or 457 Plan “ Age 50 ” Catch-up Form located on the HR Portal - Documents and Forms - Retirement 401k 457 Plans and return the completed form to Human Resources . Please note that this form is not for regular biweekly contributions to 401 ( k ) or 457 plans . Changes to your regular biweekly payroll deductions must be completed online at www . icmarc . org / arlington-tx or by calling ICMA-RC Investor Services at 800-669-7400 . It is the responsibility of the employee to monitor contributions to ensure that they do not exceed the annual limits established by the Internal Revenue Service . For more information , visit ICMA-RC ’ s dedicated City of Arlington website
22