Deferred Compensation

Plans & Eligibility

The Deferred Compensation Program and the following information is solely for your convenience and benefit. The views and opinions expressed by the providers may not reflect those of the City of Mesa.

457 Deferred Compensation Plan

All full-time and part-time benefited employees are eligible to participate in the Deferred Compensation program. Additionally, participating full-time employees with a minimum of one year of service are eligible to receive a City contribution to their deferred compensation account.

Full-time employees who are rehired and participating are subject to the one-year of service waiting period from his/her rehire date to become eligible for the City contribution.

This benefit provides participating employees who contribute at least $10 per paycheck to deferred compensation with a contribution from the City equal to 1% of the employee's base pay to their deferred compensation plan.

Enrollment

• Enrollment Form(PDF, 713KB) - contact Retirement Plan Advisor with questions
  Form MUST BE returned to Empower at the address or toll-free fax number on the form, or to Empower Retirement Services c/o Payroll, by interoffice mail.
  
  
• Online Enrollment - contact Retirement Plan Advisor for Group ID/Plan Number and current Plan Enrollment Code

Roth Plan

Roth contributions are made with after-tax dollars and is a supplement to the City's 457 deferred compensation plan.

To receive the City’s employer contribution, full-time employees must contribute a minimum of $10 per paycheck into the City’s traditional, pre-tax 457 plan.

Pretax or Roth - Which Road to Take(PDF, 138KB)

Emergency Hardship Withdrawals

The plan does allow for withdrawals in the event of an unforeseeable emergency resulting in a severe financial hardship under narrow circumstances defined in federal law and applicable Treasury Regulations.

Participants must contact Empower directly at 800-701-8255 to request an emergency hardship withdrawal application. The request will be evaluated and either approved or denied by Empower Retirement Services.

Employees who take an "Unforeseeable Emergency Withdrawal" will have their deferrals automatically stopped for 6 months; the employee is responsible for making sure they get re-started.

Rollovers

Former employees who are eligible for distribution of their funds (after retirement or severance of Mesa employment) may have their funds rolled over to IRA's 403(b), 401(a), 401 (k), or 457 (b) plans. Caution: Such rollovers may result in the funds becoming subject to withdrawal penalties and/or additional processing fees/expenses. Contact Empower Retirement Services for details.

Mesa's Deferred Compensation (457 Plan) provider will accept rollovers from IRA's 403(b), 401(a), 401 (k), or 457 (b) plans. Caution: Rollovers from any plan other than a 457 Plan will be accounted for separately and may be subject to withdrawal penalties and/or additional processing fees/expenses. Contact Empower Retirement Services for details.

Service Purchase

Mesa 457 Plan participants may use the assets from their 457 account to purchase eligible service credits from a government defined benefit plan (i.e., Arizona State Retirement System [ASRS], Arizona Public Safety Personnel Retirement System [PSPRS]).