Defined Contribution

Retirement is a 3-legged stool:

In most cases, even a long-term County employee who will receive both TCERA benefits and Social Security benefits will have a drop in take-home income compared to the salary they received as a full-time employee.  Participation in the County Defined Contribution plan will provide a third retirement check that can make a significant difference in an employee's total retirement income.

How Do You Create Your Third Leg?

You can participate in one of Tulare County's Defined Contribution choices for as little as $10 a pay period.  You have the choice between the 457 Deferred Compensation Plan (money goes in pre-tax and you pay taxes when you begin withdrawals), or the new 457 Roth (money is contributed post-tax and is withdrawn tax free).

There are even ways to plan for inflation in the way you contribute.  Contribute a % instead of a flat amount and every time you get a salary increase, your deferral automatically increases.

Brown bag it one day a week for lunch and you have more than saved enough for a $10 contribution.

Wake Up Call!

According to the 2012 "Retirement Confidence Survey" conducted by the Employee Benefit Research Institute:

  • Just 14% of Americans are very confident they will have enough money to live comfortably in retirement.
  • Many workers report they have virtually no savings and investments.  In total, 60% of workers report that the total value of their household's savings and investments, excluding the value of their primary home and defined benefit plans, is less than $25,000.
  • In 1991, 11% of workers said they expected to retire after age 65.  In 2012 that number has grown to 37%.

Who Do I Contact to Sign up?

Stephanie Henry from Empower Retirement, a Great-West Life & Annuity Insurance Company, at (559) 967-2280.