Federal Insurance Contributions Act (FICA) is a federally required plan that is administered through the Social Security Administration. It requires all employees to contribute 7.65 percent of their gross salary to the plan. The city is required to contribute an additional 7.65 percent as an employer match. This plan provides retirement, survivor, disability and health insurance benefits.
Overland Park Police Department Retirement Plan (PDRP) is a defined benefit plan. Participation is automatic on Jan. 1, following a two-year waiting period. The city completely funds this plan; there are no employee contributions. Vesting begins at 40 percent after four years of service (including the two-year waiting period) and increases 10 percent per year up to 100 percent after 10 years of service. Retirement benefits are determined by a formula that takes years of service times final average salary times a factor of 2 percent. Participants may retire at age 55 or after completing 25 years of service.
Overland Park Fire Department Retirement Plan (FDRP) is a defined benefit plan. Participation is automatic on the first day of any month following a six month waiting period. The city completely funds this plan; there are no employee contributions. Benefits are vested after five years of service. Retirement benefits are determined by a formula that takes years of service times final average salary times a factor of 2 percent. Participants may retire at age 55 with five years of service or at age 45 with 20 years of service.
Deferred Compensation Plan (457) is a supplemental retirement plan. Participation is voluntary and there is no waiting period to begin contributing. Employee contributions (up to the lesser of $15,500 in 2007 or 100 percent of annual salary) are made on a pre-tax basis, thus reducing a participant's immediate taxable income. Employees are 100 percent vested at all times, although monies are generally not available until retirement or termination except in cases of extreme financial hardship. There are no employer contributions made to this plan. Participants choose their own investment options from a choice of more than 60 different mutual funds and similar investment products that are offered through two different deferred compensation providers: