Frequently Asked Questions

What are the Plan's hours?

Where is the Plan located?

When I visit the Plan, where should I park?

What is "vesting," and when will I be vested?

What am I contributing towards my retirement?

What happens to my contributions if I quit working for the City?

If I withdraw my contributions after terminating employment with the City, when do I get my check?

Who can I name as a beneficiary?

What is a joint and survivor beneficiary?

Does the Plan offer retirement information meetings?

How is my benefit calculated?

Can I purchase service credit to put towards my retirement?

What happens to my future retirement benefit if I get divorced?

What happens if I become disabled while working for the City?

What happens if I die while working for the City?

When can I retire?

What is the Rule-of-75?

What should I do to plan for my retirement?

What do I need to do to retire?

What happens to my accrued sick and vacation time when I retire?

Can I add extra money to my retirement?

What about Social Security?

What happens to my health and dental insurance when I retire? Does the Plan offer insurance?

When can I make changes to my insurance?

Is my retirement taxable?

How do I set up my withholding?

Does the Plan send out a statement of retirement income and tax withheld at the beginning of the year? If so, when?

If I move, how do I change my address?

What happens to my life insurance when I retire?

How do I set up direct deposit of my retirement benefit?

When do retirement checks/direct deposit statements get mailed out?

What do I do if I don't receive my check?

Do retirees get an annual cost of living adjustment?

What is the Social Security Makeup Benefit?

What is a lump sum death benefit?

What is the Advisory Committee Election?

What is the Open House?

1. What are the Plan's hours?

Denver Employees Retirement Plan is open Monday through Friday, 8:00 a.m. to 5:00 p.m.

2. Where is the Plan located?

The Plan's address is 777 Pearl Street, Denver, CO 80203, situated on the corner of 8th Avenue and Pearl Street.

3. When I visit the Plan, where should I park?

The Plan has its own free parking lot on the opposite corner, east of the building on 8th Avenue and Pearl Street.

4. What is "vesting," and when will I be vested?

When an employee works for the City/DHHA for a certain amount of time, he/she will become eligible to receive retirement benefits as early as age 55. An employee is vested after five (5) years of credited service with the City/DHHA. There are no minimum service requirements for members age 65.

5. What am I contributing towards my retirement?

Employees contribute 2.5% of his/her total gross salary to the trust fund for their retirement. The City and County of Denver/DHHA contributes 8.5% towards the trust fund. These contributions are made on a pretax basis through payroll deductions. Together, the employer and employee contributions, plus income from investments, fund the retirement benefits for employees and their beneficiaries.

6. What happens to my contributions if I quit working for the City?

If an active member terminates employment before he/she is vested (ineligible for a retirement benefit), his/her personal contributions, plus 3% interest, will be refunded in a lump sum.* These contributions and interest may also be rolled over to a qualified retirement account. When the terminated employee accepts this refund, he/she forfeits all years of service and any future retirement benefit eligibility. However, if the member returns to employment with the City, he/she may receive credit for the forfeited years of service if the refunded amount, plus interest, is repaid to the trust fund.

If an active member terminates employment and is vested (eligible for a future retirement benefit), the contributions will not be refunded. Instead, these contributions will remain part of the trust fund and will be used for future retirement benefits.

*There is a mandatory federal withholding if the contributions are taken in a lump-sum. There may also be a penalty for early withdrawals.

7. If I withdraw my contributions after terminating employment with the City, when do I get my check?

If a member terminates employment with the city before he/she is vested, and chooses to receive a refund of contributions, a check will be mailed from the Plan 90 days after their application is received.

8. Who can I name as a beneficiary?

Active members may name a beneficiary as follows:
--If the member is married, the beneficiary must be the spouse, unless the spouse formally waives this right and consents in writing to the designation of another beneficiary.
--If the member is unmarried, but has children under age 21, the children will automatically receive the benefit until they reach age 21.
--If the member is unmarried with no children under age 21, anyone may be named as beneficiary.
--Only one beneficiary can be named.
--The beneficiary cannot be a trust/estate.
--A contingency beneficiary cannot be named.

Retired members may name a Joint and Survivor beneficiary as follows:
--If the member is married, he/she may name their spouse as beneficiary. If they choose not to, the spouse must formally waive this right and consent in writing to the designation of another beneficiary.
--If the member is unmarried, anyone may be named as beneficiary.
--Once a beneficiary is designated, it cannot be changed.

9. What is a joint and survivor beneficiary?

At retirement, members may elect to reduce his/her retirement benefit to provide a lifetime monthly benefit over two lifetimes. Your retirement benefit is reduced based on your and your joint and survivor beneficiary's age at retirement. You may elect to give your joint and survivor beneficiary 100%, 75%, or 50% of what you are receiving, upon your death. The reduction to your benefit is the highest if you elect the 100% option, and is the least if you elect the 50% option. The joint and survivor beneficiary must be your spouse, unless he/she formally waives this right and consents to another beneficiary. Once you receive your first retirement benefit, your beneficiary option cannot be changed. However, your benefit will increase to the maximum benefit if your beneficiary predeceases you.

10. Does the Plan offer retirement information meetings?

Yes. The Plan holds four Information Meetings a year, to allow active members near retirement a chance to receive information about their retirement options. These meetings are held at the Plan offices. A current schedule can be found in our About Us section. The Plan also holds Retirement Information Meetings on the first Thursday of every month. These meetings, called Brown Bag Meetings, are held from noon to 1:00 p.m. at the Webb Building. Information about these may also be found on our About Us page. Members may also schedule an individual appointment with a membership service representative.

11. How is my benefit calculated?

For active members employed prior to September 1, 2004, the lifetime monthly retirement benefit calculation is 2% of the employee’s average monthly salary (AMS) (based upon the highest 36 consecutive months' salary that the member earns from the employer) times years and months of credited service. For members who are hired or re-hired on or after September 1, 2004, the retirement benefit is based on 1.5% of the average monthly salary times years and months of credited service.

12. Can I purchase service credit to put towards my retirement?

Yes. With certain restrictions, vested members may purchase, prior to retirement and subject to procedures established by the Plan, unlimited governmental service credit and up to five years of nongovernmental service credit, for the purpose of adding years and months of service to the calculation of the member's retirement benefit. The cost to purchase service is based on the member's age, earliest unreduced retirement age, average monthly salary, and certain actuarial factors.

13. What happens to my future retirement benefit if I get divorced?

If vested, the member's retirement benefit is considered marital property in a divorce. The Plan offers a Domestic Relations Order (DRO) that can be used if both the member and the spouse agree. The DRO allows the division of the member's retirement benefit at the time the member retires. The retirement benefit is based on the years of marriage/employment at the normal retirement age of 65. There are specific forms and procedures that must be followed. Please refer to our page on the DRO.

14. What happens if I become disabled while working for the City? The Plan offers disability retirement for members with permanent disabilities. Whether it is an On-the-Job or Off-the-Job Disability, this benefit is payable for life, provided the member continues to meet the eligibility requirements. This benefit becomes effective the first day of the month after the member terminates employment with the employer because of the disability. The member must apply within 90 days of termination and complete the requirements within two years. For more information, please see our section on Disability retirement.

15. What happens if I die while working for the City?

If an active member should die while employed with the City/DHHA, there are death benefits available for the member's beneficiary. In most instances, the Death Benefit is a lifetime monthly benefit for the designated beneficiary. If the member is married, the member's spouse will receive the lifetime benefit unless the spouse has waived this right and formally consented to another designated beneficiary. Benefits are available for both On-the-Job and Off-the-Job deaths. For more information, please refer to our section on Death Benefits.

16. When can I retire?

A Normal unreduced retirement is at age 65. The earliest retirement age is 55. Your benefit may be reduced 3% for each year under age 65 (30% at age 55) unless you have reached the Rule-of-75 (years of service + age = 75). For further information, please refer to our Benefits section.

17. What is the Rule-of-75?

The Rule-of-75 Retirement enables a member to retire as early as age 55, without a benefit reduction, provided the combined years and months of credited service and age at termination equal or exceed the sum of 75.

18. What should I do to plan for my retirement?

The lifetime monthly benefit your will receive from the Plan will provide a part of your retirement income. You will need to acquire and save money from other sources, as well. Social Security (www.socialsecurity.gov) is one of these sources. IRA's, annuities, personal savings, and other investments can also contribute to your retirement.

The City offers two 457 plans (Deferred Compensation) to help you save for retirement. You can transfer pre-tax money through payroll deductions to Cooney and Associates or to ICMA. They can help you select investments that meet your risk tolerance and financial objectives. For more information, you can call Cooney and ICMA, or get a brochure and enrollment form from your Payroll Technician.

Social Security: 1-800-772-1213
Cooney & Associates: (303) 388-0854
ICMA: 1-800-669-7400

Other sites that can help with budgeting and planning :

Employee Benefits Security Administration
U.S. Department of Labor
200 Constitution Avenue N.W.
Washington, D.C. 20210
1-866-444-3272
www.dol.gov/pwba
(EBSA can provide more information on saving and making investments for retirement.)

www.asec.org: The site for the American Savings Education Council.

www.sec.gov: The site for the Securities and Exchange Commission.

www.choosetosave.org: Provides calculators and information on savings for all age groups.

www.fpanet.org: The site for the Financial Planning Organization. This provides a directory of Certified Financial Planners, searchable by area.

19. What do I need to do to retire?

--Get an estimate of retirement benefits from the Plan.
--Provide written notice of your retirement date to your supervisor, payroll technician, and the Plan between 30 and 90 days prior to the date. The Plan will then send a Certification of Retirement form to your payroll technician.
--After the Certification of Retirement form has been received by the Plan, you will receive a letter to schedule an appointment with the Plan to complete retirement papers.

20. What happens to my accrued sick and vacation time when I retire?

The Plan treats your sick and vacation as salary. It is added to your last month's salary to boost your average monthly salary (AMS), if your last 36 months are your highest 36 months of service. The calculation for your retirement benefit is a percentage of your AMS times years and months of service. You may want to save your vacation time as you near retirement to increase your lifetime monthly retirement benefit. Before you receive your payoff of accrued sick and vacation time, contact one of the deferred compensation plans to check if you can have this money deferred through payroll to your account. That will defer any taxes on this lump-sum payment. The deferred compensation plans you may call are as follows:

Cooney & Associates: (303) 388-0854
ICMA: 1-800-669-7400

21. Can I add extra money to my retirement?

You cannot add extra money to this retirement plan. However, you can contribute more to your future retirement benefit through a deferred compensation plan. Contact Cooney & Associates or ICMA for more information.

Cooney & Associates: (303) 388-0854
ICMA: 1-800-669-7400

22. What about Social Security?

It is recommended that members contact Social Security directly for specific information.

23. What happens to my health and dental insurance when I retire? Does the Plan offer insurance?

The Plan offers group health and dental insurance to retired members, eligible spouses and dependents. If you are under age 65, the same insurance plans are available as when you were employed with the City/DHHA. The Plan will contribute toward the monthly health insurance premium. The monthly amount the Plan contributes toward health insurance is established by the Board based on credited service with the employer (excluding purchased service credits). The Plan also offers the Health Insurance Premium Reimbursement for its out-of-state members who are under age 65. Contact the Plan for more information.

24. When can I make changes to my insurance?

Changes to insurance may be made only during the Open Enrollment period, which is the month of October. Any changes made during this time will be effective January 1. During Open Enrollment, you can change plans, add dental insurance, or add dependents. However, you may cancel your insurance at any time throughout the year. Members with Medicare parts A and B may drop, add, or make changes to their insurance at any time.

25. Is my retirement benefit taxable?

Yes, the monthly retirement benefit you receive from the Plan is subject to federal and state tax, according to tax guidelines. Colorado law excludes pension income up to $24,000 per year for those over age 65 and $20,000 per year for those under age 65. The Plan is able to withhold federal and state taxes from your benefit. You may call the Plan to request a form, or click here to print one. Talk to your consultant for the amount you need withheld.

Please note that the Plan representatives cannot provide tax counseling. Specific questions about your taxes should be directed to the IRS, the Colorado Department of Revenue, or to your personal tax consultant.

26. How do I set up my tax withholding?

You may change your withholding at any time by filling out one of the Plan's tax withholding forms. Your form must be received by the 15th of the month prior to the month in which you want the change to become effective.

27. Does the Plan send out a statement of retirement income and tax withheld at the beginning of the year? If so, when?

Yes, the Plan sends out a 1099-R to every retiree. This form is sent out in the same envelope as the February retirement benefit or notice of deposit.

28. If I move, how do I change my address?

You can change your address by contacting the Plan for a Change of Address form, or you may write a letter including your new address and a signature. A signature is required for any change to your account. Active employees may change their address through their payroll.

29. What happens to my life insurance when I retire?

Your life insurance with the City/DHHA will terminate when you retire. Your Payroll Technician can give you forms to convert this group policy to an individual policy. You will pay the premium directly to Standard Insurance.

30. How do I set up direct deposit of my retirement benefit?

You can set up or change your direct deposit by contacting the Plan for a direct deposit form. You may also send in a voided check or deposit slip, along with your signature, to the Plan.

31. When do retirement checks/direct deposit statements get mailed out?

Your benefit is paid on the first of the month for that month, and is taxable. The benefit may be taken as a check, or be directly deposited into a checking or savings account. Retirement checks and direct deposit statements are sent out on the last day of the month for the following month. Direct deposits are generally in your account on the last day of the month. For example, your January benefit would be mailed to you on the last day of December.

32. What do I do if I don't receive my check?

If you do not receive your check in the mail, you may contact the Plan. A stop-payment can be placed on the check you did not receive, and a new check will be reissued. The Plan can only replace checks that have not been received after 6 business days.

33. Do retirees get an annual cost of living adjustment?

A Cost of Living Adjustment (COLA) is voted on by the Retirement Board each year, but it is not a mandatory adjustment.

34. What is the Social Security Makeup Benefit?

The Retirement Board wanted to increase your retirement benefit because the normal retirement age under Social Security was extended beyond age 65 for individuals born in 1938 and later. In an effort to help members "make-up" for delayed Social Security benefits, the Plan will increase monthly retirement benefits to those individuals who qualify. The benefit is based on a percentage of the member's estimated Social Security benefit times credited service with the City during which contributions were made to Social Security (up to a maximum of 35 years), divided by 35. This additional benefit is payable beginning at age 62 or the member's retirement date, whichever is later.

35. What is a lump sum death benefit?

A lump sum death benefit is available to members who retire directly from active service. This is a single payment, made to the member's beneficiary. The beneficiary may be any person/s, or an estate. This benefit is not available as a lump sum, except upon death of the member. However, members may withdraw this amount in 100 or 50 equal installments.

36. What is the Advisory Committee Election?

The Plan has an elected Advisory Committee composed of three members, both active and retired, who represent the membership at monthly Board Meetings. The Advisory Committee Election is held every spring, to elect or re-elect one of the Advisory Committee Members.

37. What is the Open House? The Open House is held for retired members every summer at the Plan offices. This event provides retired members an opportunity to meet up with coworkers from their days with the City/DHHA. Light refreshments are served at this summer event.