Laserfiche WebLink
<br />POST EMPLOYMENT INSURANCE UPDATE <br /> <br />After many hours and considerable consideration, the Post Employment Insurance <br />Committee has decided not to develop a Post Employment Insurance Plan (PEIP) at this <br />time. This decision was based primarily on the following information comparing PEIP's <br />with 457 Deferred Compensation plans: <br /> <br />. <br /> <br />PEIP's require mandatory participation by every employee of the designated group. <br />Severance pay as well as regular deferrals throughout employment can be contributed <br />to a 457 plan at the employee's discretion. <br />The City offers two different options for investing in 457 plans. <br />457 plan contributions are pre-tax, the same as contributions to a PEIP. <br />PEIP moneys can be used only for qualified medical expenses while 457 moneys can <br />be used for anything you choose. <br />Money in a PEIP account can only be used by the employee's spouse and tax <br />dependents if the employee dies. If there is no spouse or dependent, the money is <br />forfeited to the trust. 457 account balances go directly to the employee's designated <br />beneficiary. <br /> <br />. <br /> <br />. <br /> <br />. <br /> <br />. <br /> <br />. <br /> <br />While you will pay tax on the money you receive from your 457 account, as opposed to <br />money from a PEIP which is tax free, the committee did not feel this was a strong enough <br />motivator to require mandatory participation and restricted use. <br /> <br />On behalf of the committee, thank you all for your input during this process. We encourage <br />everyone to carefully consider the potential cost of health care after employment and to <br />prepare for this as you choose. If you would like more information on the 457 plans <br />available to City employees, contact Lauren at extension 1024. <br />