It’s your choice.

As a City of Philadelphia Deferred Contribution Plan participant, you’re in charge. You decide how you want to save for your retirement readiness through the Plan. One of the choices you have is how to contribute.

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Benefits of the percentage of pay option

  • Every time you get a raise, so does your contribution amount
  • You potentially increase the money you have available at retirement
  • Your account could grow faster, potentially allowing you to retire sooner
  • There’s no worry about forgetting to increase your contribution regularly

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Benefits of the fixed dollar option

  • You control the specific amount you defer each payday
  • You decide when adjustments should be made
Let's compare the options
Assumptions   Percentage of pay options Fixed dollar* option Difference
Starting salary $30,000 Total contributions $117,995 $82,000 $35,995
Annual raise 3% Total investment earnings* $259,153 $248,095 $11,058
Current age 25 Account balance at age 65 $377,148 $330,095 $47,053

*This assumes no increases of contribution amount and an annual rate of return on investments of 6%. This chart is a hypothetical example that’s offered to help explain a concept, if taxes and fees were considered, the amounts would be less.

Your contributions and any earnings are continually reinvested. This process, called compounding, uses time to help your money make money for you. While compounding cannot guarantee that you will have enough money through retirement, it can potentially be a powerful engine for money growth, especially through a long-term savings program such as the City of Philadelphia Deferred Compensation Plan.

Benefits of regularly increasing your contribution amount

Simply keeping the contribution amount the same your entire career might not get you close enough to your goal at retirement, and while the percentage of pay option can help you save more, it still might not be enough.

That’s why regularly increasing your contribution amount or percentage — even by a little bit each time — is important.

The Plan offers you tools to help you decide how much to start contributing now.

Frequently asked questions
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Yes, both can be made. Pre-tax contributions are taken from your paycheck before federal taxes are deducted.
Roth after-tax contributions are taken from your paycheck after federal and state taxes are deducted.

You may select either a fixed dollar amount or a percentage of pay, you may not have both in any given pay period. 

Yes. Log in to your account to change your contribution. Step 1 displays your current percentage amount. From the dropdown menu, select Dollars and input the amount you want to contribute. Additionally, you can call the City of Philadelphia Deferred Compensation Customer Service Team at 855-550-1777 or complete a Contribution Change Form.

No, you will not be notified if the requested contribution amount is not deducted.

Will the money come out at a later date? Payroll will continue to try each pay period to take the percentage you elected from your paycheck. It does not make up the missed amounts or take partial amounts. You need to change your contribution to a lower amount that your paycheck can cover.
Yes, the payroll system is programed to stop you contributions when you reach your annual maximum. Check out the current contribution limits for more information.

Paycheck Impact Calculator

Determine how your contribution will impact your paycheck

My Income & Retirement PlannerSM

Stay on track with you retirement and financial planning with this personalized and guided experience

Update your Contribution

Log into your account and select “Change contributions” from the menu

If you’d like to discuss your options one-on-one with a Retirement Specialist, schedule an appointment.