The Deferred Compensation Plan is the only retirement plan available to City employees which allows participants to determine the percentage of salary they wish to save AND direct the investment of their contributions . Plan participants benefit from the Plan by decreasing their current income tax payments while at the same time increasing their savings for retirement.
Participants thereby earn a greater return on their investments.
The Plan provides its participants with a program of ongoing investor education. The Plan offers its participants eight investment funds. The performance of each of the investment fund managers is continually monitored and evaluated by the Plan's Board. Moreover, at three-year intervals the Board entertains competitive bids from the universe of fund managers and awards a contract to the bidder charging the lowest fees and having the best performance record. While the Deferred Compensation Plan is a benefit offered by the City of New York to its employees, it is a wholly self-funded plan paid for by participants' fees.