Due to the unprecedented volatility experienced in the financial markets recently, employees are concerned about the safety of their assets in the city's 457 / 401(a) Plans and Post Employment Health Plan (PEHP).
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Effective December 1, 2008, the city has implemented a change to Section 4.4 of the city's 401(a) Plan, which relates to how the 401(a) Plan annual limit is applied when an employee retires. This change was reflected in the 8th Amendment to the Plan approved by the city"s Deferred Compensation Plan (DCP) Board earlier this year.
Beginning December 1, 2008 , the previous year's 401(a) Annual Limit can no longer be applied to the Special Pay (sick/vacation/compensatory time payout) automatically deferred to the 401(a) Plan at retirement. In the past, this rule was applied IF the employee was retiring prior to December 1st of a given year.
During these difficult economic times, the city and Nationwide want to provide employees with information to help them feel more secure regarding the investments in their 457 /401(a) Plans and Post Employment Health Plan (PEHP). This is the first in a series of articles which will be posted in city publications and on Nationwide's website on a regular basis.
