ICMA-RC Deferred Compensation Plan
(IRS Section 457(b) Plan)
The 457(b) Deferred Compensation Plan is offered through ICMA-RC. This program is voluntary for those employees who wish to participate. Maximum $18,000 for 2015 calendar year - multiple investment options available. The City contributes $10.00 per pay period for each employee’s contribution of at least $10.00 per pay period.
Local Government Employees Retirement System (LAGERS)
Springfield Police Officers are offered a pension plan through the Local Government Employees Retirement System (LAGERS). The current Benefit Program is L-11. Effective July 2015, the City of Springfield contributes 16.10% of wages toward this benefit for Springfield Police Officers.
Pension calculation: 2.5% x final average salary (average of 36 highest consecutive months in the last 120 months) X years of service credit = monthly benefit.
A LAGERS member is vested (guaranteed a benefit) after 5 years of service credit within the LAGERS system. Police Officers are eligible to retire with unreduced benefits at age 55. A vested employee may elect to retire with reduced benefits up to 5 years earlier than the normal retirement age.
Note: Officers do not participate in Social Security but those hired after 4/1/86 contribute 1.45% to Medicare.Employees hired on or after February 1, 2010 are provided a retirement plan.