Contributions to the Retirement Plan -
As of January 1, 2005, the City and County of Denver and DHHA contribute 8.5% of the employee’s total gross salary to the trust fund, and the employee contributes 2.5% of his or her total gross salary. The contribution made by the employee is on a pretax basis through a monthly payroll deduction. For example, if the employee’s gross monthly salary is $3000, the calculation would be: $3000 x .025 $75/month, or $37.50 per pay period. The employer’s monthly contribution would be $255.00. Together, the employer and employee contributions, plus income from investments, fund the retirement benefits for employees and their beneficiaries.
If an active employee terminates employment prior to being vested (ineligible for a retirement benefit), his or her 2.5% employee contribution, plus 3% interest, will be refunded in a lump sum. As an alternative, the terminated employee may roll over this 2.5% contribution and 3% interest to a qualified retirement plan account. Upon the acceptance of a refund, the terminated employee forfeits all years of service and any future retirement benefit eligibility. However, the terminated employee who returns to employment will receive credit for the years of service forfeited by repaying the original refund, plus interest.
If an active employee terminates employment and is vested (eligible for a retirement benefit) the contribution shall not be refunded. Instead, the contribution will be used to fund his or her future retirement benefit.
Together, the employer and employee contributions, plus income from investments, fund the retirement benefits for employees and their beneficiaries.