In addition to Social Security, the Town participates in a 401(a) money purchase retirement plan through ICMA Retirement Corporation. The required pretax employee contribution is 4 percent of salary, with the Town contributing 6 percent. Employees are fully vested after one year of employment. This benefit begins immediately.
457 Deferred Compensation and Roth IRA
A voluntary 457 Deferred Compensation Plan is available through ICMA. Effective Jan. 1, 2013, 457 Deferred Compensation plans allow for a maximum contribution of $17,500, plus a catch-up amount for people 50 years of age and older of $5,500. These contributions are made on a pretax basis.
Also available is a Roth IRA that allows a maximum contribution of $5,000 per year. All Roth IRA contributions are voluntary and are deducted on an after-tax basis.
Fire Department only
Instead of Social Security, the Town participates in the Fire
Pension Association Statewide Defined Benefit Plan for eligible Fire Department staff. The employee contribution is 8 percent, with an 8 percent employer match. The Town also contributes 2 percent to an FPPA 457 Deferred Compensation Plan. These benefits begin immediately.