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Most people envision their retirement as a reward for a life of hard work….and it should be. But experts say you'll need to replace 70% to 80% of your working income for a comfortable retirement. The truth is saving enough to get to that level takes planning. The money you contribute to your plan comes from your before-tax income, which is set aside in your account where it could grow over time.

A Deferred Compensation Plan is available to all non-temporary employees who are regularly scheduled to work 20 or more hours per week. Under the Plan and Internal Revenue Service (IRS) Code 457, employees may authorize a portion of their salary be withheld and invested for payment at a later date. Neither the deferred amount nor earnings on the investment are subject to current federal or state income taxes. Taxes become payable when deferred income plan earnings are distributed, presumably at retirement when an employee's taxable income is less. An after-tax Roth option is also available in which taxes are paid at the time of the deferral.

The maximum amount you are allowed to contribute to your 457 plan is based on taxable compensation as defined by the Internal Revenue Code (IRC). The current maximum contribution amount is 100% of your compensation less any mandatory before tax contributions to a governmental pension plan per year or $23,000 whichever is less. Employees age 50 or over can contribute an additional $7,500 per year. 

You can go to to begin a new enrollment, update your beneficiary or change your salary deferral amount. We will receive a report each month detailing the actions that have taken place during the month so we can ensure they are entered in the system for payroll.


Employer Matching

The City will match your pretax contributions in either the 457 OR the 401(k).  The employer match is paid up to a percentage of your base wages per pay period.  Please note this is for pretax contributions only, there is not a match for the after-tax Roth.

Please see the fringe exhibit in the Employee Handbook for specific match information.

Personal Account Loans

Loans are available to all participating employees. Please review the Managing Your Account Guide (PDF) to answer questions you may have.

The PERSI Choice 401(k)

The Choice Plan 401(k) is an voluntary “defined contribution” plan, meaning you decide if and how much to contribute. Unlike your PERSI Base Plan account, the amount you receive at retirement is based on the contributions and earnings of the account. It allows you to contribute a portion of your salary on a tax-deferred basis via payroll deduction. This means your contributions come out of your paycheck before taxes, thereby reducing the amount of taxes you pay during the year. The Choice Plan 401(k) includes a loan provision where members may take a loan for any reason as long as they have a balance of $2,000 or more in their account, excluding any gain sharing amounts.

If you wish to sign up or change your elections, please complete the PERSI Choice 401k form.

Retirement Minute

Interests, concerns or learn something new.  Check back often for new topics.

Is Your Beneficiary Up to Date?

Understanding Market Ups & Downs

Financial Wellness Matters (video)

Navigate Market Fluctuations (video)

Budgeting (video)

Roth vs Pre-Tax Contributions (video)


Keeping your account secure is a top priority for Lincoln, but it’s a responsibility we share with you.  What can you do to help keep your savings safe? Visit to register your retirement plan account online. This prevents unauthorized individuals from signing up in your place and gaining access to your savings.

Follow these security tips when setting up your online account:
Choose a unique username, not your email address.
Make your password strong by including lowercase and uppercase letters, numbers, and special characters.

Then log in at to manage your account and monitor your progress. You’ll find helpful resources and personalized tools to see if you’re on track for your goals.


Account Representative:
Rachael Schneider
(360) 580-9741 
Lincoln Financial Services