Mission Square Retirement Deferred Compensation Plan (IRS Section 457(b) Plan)
The 457(b) Deferred Compensation Plan is offered through Mission Square Retirement. This benefit is voluntary for those employees who wish to participate and allows members to invest tax deferred earnings as personal savings for retirement. The City contributes a flat match of $10.00 per pay period when the employee contributes at least $10.00 per pay period. IRS Deferred Compensation annual contribution limit for the 2022 calendar year is $20,500. Multiple investment options are available with the Plan.
Local Government Employee Retirement System (LAGERS)
Firefighters are offered a retirement plan through the Local Government Employees Retirement System (LAGERS). The current Benefit
Program is L-11. Effective July 1, 2021, the City of Springfield contributes 22.40% of wages toward this benefit for Firefighters.
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. Firefighters 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.
Employees in this benefit program do not participate in Social Security.