With the Defined Contribution Plan, a 401(a) account is established on your behalf and your account grows through contributions
from the city of Richmond and earnings from investments you select through
ICMA-RC.
This plan is an optional choice for police officers and firefighters. See the
plan brochure for complete details.
You do not make contributions to this plan. The city contributes a percentage of your salary to your plan account each pay period in accordance with the following schedule based on your years of creditable service:
| Years of Service | Contribution Percent |
|---|
| Less than 5 years | 5% |
| 5 to 9 years | 6% |
| 10 to 14 years | 8% |
| 15 or more years | 10% |
The benefit is a lump-sum amount equal to your account balance when you terminate city employment or retire;
it may also be payable as a monthly benefit. With the Defined Contribution Plan, vested benefits are
portable if you change employers - this means you can take the benefit with you if you leave the city after
you have satisfied the vesting requirement of five years of creditable service or attainment of age 65.
When you terminate employment with the city, you may receive a lump-sum payment, start receiving monthly or
installment payments or leave your account balance in the plan for later distribution. Distributions are taxed
when you receive them based on your tax rate at the time, unless they are rolled over to another eligible
retirement plan or Individual Retirement Account (IRA).
Upon your death, any account balance is transferred to your designated beneficiary.
If you elected to participate in the Defined Contribution Plan, please contact ICMA-RC at
(800)669-7400 or access their website at
www.icmarc.org.
