ICMA-RC Deferred Compensation Plan
(IRS Section 457(b) Plan)
The 457(b) Deferred Compensation Plan is offered through ICMA-RC. 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 2021 calendar year is $19,500. Multiple investment options are available with the Plan.
Local Government Employees Retirement System (LAGERS)
Springfield Police Officers are provided an employer-funded Defined Benefit Pension Plan (Program L-11) through the Local Government Employees Retirement System (LAGERS). Effective July 1, 2020, the City of Springfield contributes 19.60% of wages toward this benefit for Police Officers.
The LAGERS pension is a lifetime benefit beginning at retirement, continuing until death, and may include spousal payment options as well as disability and survivor benefits. Pension calculation: 2.5% (Program multiplier) 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 Police Officer may elect to retire with reduced benefits as early as age 50.
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 this retirement plan.