About

A 457(b) Deferred Compensation Plan is a voluntary retirement plan offered by the City of Tacoma, created to allow you to put aside money from each paycheck toward retirement. Contributions are made to the account in your name via payroll deduction for the exclusive benefit of you and your beneficiaries. The value of the account is based on your contributions made and the investment performance over time.

A deferred compensation plan can help bridge the gap between what you have in your pension and Social Security, and how much you'll need in retirement. Depending on what plan you choose, your contributions may be pre-tax or post-tax.  

Pre-tax contributions you make reduce your taxable income for the year. These contributions and all associated earnings are subsequently not subject to Federal tax until you withdraw them. You also may be able to make after-tax Roth contributions which allow for potentially tax-free withdrawals. 

The annual contribution limit for the Traditional 457 (pre-tax) and Roth 457 (post-tax) combined must adhere to the annual maximum limits. These limits can be found below.

Investing

You control how your account is invested, choosing from a wide range of options available through the City’s plans.

Withdrawals

You can make withdrawals from your account when you leave employment with the City and have the ability to take payments as needed or request scheduled automatic payments. You maintain control over your investments and continue to benefit from tax deferral even after you leave.

During employment, subject to the City’s plan and IRS rules, you may also be able to make withdrawals after age 70½ or due to an unforeseeable emergency. A loan option is also available.

Withdrawals are generally taxable but, unlike other retirement accounts, the 10% penalty tax does not apply to distributions prior to age 59½ (the penalty tax may apply to distributions of assets that were transferred to the 457 plan from other types of retirement accounts).

Beneficiaries

You designate directly with your Deferred Compensation vendor, a beneficiary, or beneficiaries, to receive any remaining assets upon your death. Designating beneficiaries can help ensure your assets are paid per your wishes, avoid the potential costs and delays of probate, and allow non-spouse beneficiaries to receive additional tax benefits.

 

Limits and Options

Options	Traditional 457	Roth 457
Pre-tax contributions	Yes	No
Available to all City employees	Yes	Yes
2023 annual contribution limits   If contributing to the Traditional 457 and the Roth 457, annual contribution limit is for both plans COMBINED.   Contributions are payroll deducted from every pay period.	Regular Deferral $22,500     Age 50 Catch-Up $30,000     Pre-Retirement Catch-Up $45,000	Regular Deferral $22,500   Age 50 Catch-Up $30,000   Pre-Retirement Catch-Up $45,000
Matching from the City	Yes Only for Police & Fire	No
Borrowing from your balance	Yes Specific IRS rules apply	No
Tax on post-separation distributions	Yes At the Federal level of 20%	No

Please refer to the plan documents for detailed information or contact the plan representatives listed below.

City Deferred Compensation Rules, Policies and Information

Deferred Compensation Plan Document
Deferred Compensation Bylaws

Enrolling and Making Deferral Changes

Deferral increases, decreases, as well as new enrollments must be made using your Vendor Portal (links to each vendor and instructions are below). These changes will take affect immediately.

 

If you have any questions, please contact the Benefits Office at (253) 573-2345 or benefits@cityoftacoma.org.

 

Instructions for online enrollment and changes for MissionSquare

Instructions for online enrollment and changes for Local 31 only

 

2023 Limits for Deferred Compensation

The monthly amounts shown in these documents are calculated based on changes being made prior to January 1. If you wish to make the maximum allowable contributions for the year after January 1, please recalculate your monthly contribution based on the number of remaining pay dates for the year.  Your timekeeper can assist you with this information if you do not have it.

 

Employee Contribution Limits (Except Commissioned Police and Fire)

Employee Contribution Limits (Police Local 6 Only)

Employee Contribution Limits (Police Local 26 Only)

Employee Contribution Limits (Fire Local 31 Only)

Employee Contribution Limits (PPSMA Only)

 

MissionSquare Retirement (formerly ICMA) Financial Planning Webinars can be found here.

MissionSquare Scheduled Visits 

MissionSquare is also available to visit other City worksites. Contact the Benefits Office for assistance with scheduling.

 

Vendor Contacts and Information

MissionSquare Retirement (formerly ICMA)

MissionSquare is available to all City Employees

MissionSquare Name Change May 2021
MissionSquare Name Change FAQ May 2021

 

MissionSquare Loan Guidelines and Procedures

MissionSquare Website

 

Keith Penewit (Work) 202-759-7015  (Cell) 202-430-3932

kpenewit@missionsq.org

 

MissionSquare Online Scheduling for City of Tacoma Employees

MissionSquare Get to know your 457
MissionSquare Transition Resources

The City of Tacoma provides you with an employer-paid Long Term Disability (LTD) Insurance benefit in the event you become disabled. The LTD benefit provides replacement of some of your income in the event you are not able to work.

In addition to the basic Long Term Disability (LTD) insurance, the City of Tacoma offers access to voluntary employee-paid Supplemental Short and Long Term Disability benefits at group rates for you in the event you become disabled. The Short Term Disability benefit provides replacement of some of your income in the immediate future and can help bridge the gap to LTD. The Supplemental Long Term Disability insurance can provide additional LTD income and can shorten the waiting period for LTD benefit payments to begin. Standard Insurance Long Term Disability Certificate
Standard Insurance Short Term Disability Certificate
Standard Insurance Privacy Notice

City Paid-Long Term Disability Summary
Employee Paid Voluntary Long Term Disability Buy Up Summary
Employee Paid Voluntary Short Term Disability 

What happens if you want Short Term Disability or the Long Term Disability Buy-up plans after your initial sign up period has lapsed? (See the Employee Benefits Guide on the FAQs & Information page for more details on these voluntary plans as well as your cost)

 

If you wish to apply for supplemental voluntary disability insurance, please contact the Human Resources Benefits Office for the needed application forms.  Additionally, we want to make you aware that the insurance company may ask you to take a physical exam or provide a blood sample at no cost to you.  Their contracted company, ExamOne, may contact you for this purpose.  Below are links that provide more information on this process.

 

Disability Insurance Exam Preparation

Video Guide of the Process

The City of Tacoma provides employees an IRS Section 125 Flexible Benefits Spending Plan, which allows for employees to save money on their health and dependent care expenses.  Employees save by setting aside an amount of money per year before taxes are taken out into an account to pay for out-of-pocket health and dependent care expenses.

 

Under the Section 125 Flexible Benefits Spending Plan there are two plan components: Health Flexible Spending Account (Health FSA) and a Dependent Care Flexible Spending Account (Dependent Care FSA) that is for out-of-pocket day care expenses for a child or adult dependent that cannot care for themselves.

 

 

Health Care FSA Spending Overview

FSA Spending Summary Plan Document

The City of Tacoma provides you two forms of employer-paid Life Insurance benefits for you and your designated beneficiaries in the event of your death. You can be secure with the knowledge that your family will be taken care of should you die unexpectedly.

In addition to the basic life and AD&D insurance policies, the City of Tacoma offers access to voluntary employee-paid Supplemental Life and AD&D Insurance benefits at group rates, for you and your family members. Life Insurance Certificate
Basic Life Insurance and AD&D Summary

What Happens if you want additional City Life Insurance?

If you wish to apply for additional life insurance for you or your spouse, please contact the Human Resources Benefits Office for the needed application forms.  Additionally, we want to make you aware that the insurance company may ask you to take a physical exam or provide a blood sample at no cost to you.  Their contracted company, ExamOne may contact you for this purpose.  Below are links that provide more information on this process

Life Insurance Exam Preparation

Video Guide of the Process

 

Travelers Assistance

Travel Assistance helps you cope with emergencies when you travel more than 100 miles from home or internationally for trips of up to 180 days.  Travel assistance can also help you with non-emergencies, such as currency exchange information, inoculation requirements for foreign countries, passport and visa information.  As a participant in the City’s basic life insurance coverage form The Standard, you and your dependent family members are automatically covered.

We encourage you to print and take copies of the flyer with you.

Travel Assistance
Travel Assistance Information & Features

The City of Tacoma currently has two medical carriers, Regence BlueShield and Kaiser Permanente. Employees have the choice at the time of hire or during open enrollment periods to enroll in the Regence BlueShield PPO or High Deductible Plans, or the Kaiser Permanente HMO Plan.

 

Kaiser Permanente Resources

The Kaiser website offers links to general information about the Cooperative, including its health plans, provider and facility directories, newsroom and more. For members, Kaiser offers password-protected access to your medical record, health care provider selection and messaging, an online medical center with information on more than 5,000 health topics, discussion groups, appointment booking, prescription refills, and more.

 

Kaiser Customer Service can be reached at (888) 901-4636

 

Plan Summary

Plan Book

 

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The Regence website is designed to help advise Regence members on health care options, lifestyle options, navigate them through the health care system and reward those who make healthier choices. With the Regence website, members can find all their health-related resources in one place.

 

Regence Customer Service can be reached at (855) 877-0047

 

Regence PPO - Active Employees

Plan Summary

Plan Summary 2023 - LEOFF I Only

 

Plan Book

Specialty Pharmacy Information
Pharmacy Overall Quick Reference

Regence Travel Coverage

BlueCross Blueshield Global

Regence Bluecard Worldwide

Regence City of Tacoma Retiree Plan Information
Note: TERS retirees, please see the Retirement Office for plan information. Visit cityoftacoma.org/retirement or call 253-502-8200.

Regence Local 6 Retiree Summary
Regence Local 6 Retiree Plan Info

*These services are also available to retirees on Regence Plans

Regence Privacy Policy
Transparency in Coverage (TIC): Link to Machine-Readable Files

 

For employees who select Regence as their Medical provider, the City of Tacoma provides vision benefits through the Vision Service Plan (VSP). Their phone number is 1-800-877-7195.

To access those providers specific to our plans, be sure to login to the VSP.com website before searching for providers.  Visiting one of these designated providers will help ensure you are getting the maximum benefit available.

Vision Service Plan (VSP) Summary

Vision Service Plan Certificate
VSP Privacy Policy

 

For employees who select Kaiser Permanente as their Medical provider, vision benefits are provided through their Kaiser Permanente Medical Plan.

 

Kaiser Permanente Eye Care Customer Service can be reached by calling (800) 664-9225 or visiting their website.

The health and happiness of our employees is crucial to the success of our organization. We cannot have one without the other. To help promote good health and well-being, we launched the Tacoma Employee Wellness (TEW) Program in 2015.

 

Whether you're already living a healthy lifestyle or are just beginning to make some changes, the TEW Program can help empower you to reach your health and wellness goals. As a bonus, you can earn incentives such as reduced health insurance premium contributions.

 

To learn more about our TEW Program, visit the Wellness Website or contact the City's Wellness Coordinator, Shannon Carmody at (253) 591-5200 or wellness@cityoftacoma.org.