CONNECT with the CityRetirement Savings Plans
The City of San Diego offers employees tax-deferred retirement savings plans to help them achieve a financially secure retirement. Retirement benefit eligibility varies by hire date. For information regarding the City’s defined benefit (pension) plan, please visit the San Diego City Employees’ Retirement System (SDCERS) website.
On this page:
- Mandatory Defined Contribution Plans
Includes SPSP-H, 401(a) and SPSP - Voluntary Defined Contribution Plans
Includes 401(k) and 457(b) Deferred Compensation - One-time Savings Contribution Request
- Additional Financial Tools and Tips
- Post-employment Health Benefits
Includes HRA, Options A, B and C
Mandatory Defined Contribution Plans
The City’s mandatory defined contribution retirement savings plans include the SPSP-H, 401(a) and SPSP plans, which are overseen by the Defined Contribution Plans Trustee Board (the Board). For more information regarding the Board, including upcoming agendas and minutes, please visit www.sandiego.gov/riskmanagement/dcptb.
The record-keeper for the City’s mandatory defined contribution plans is Principal. For assistance or questions regarding your mandatory defined contribution account, you may call the Principal Contact Center at 800-547-7754. You may access your account at www.principal.com/welcome.
Supplemental Pension Savings Plan - Hourly (SPSP-H)
Employees who meet the eligibility described below will be automatically enrolled in the City’s SPSP-H Plan:
| Standard Hour Employees | Hourly (No Standard Hours) Employees | |
|---|---|---|
| Eligibility |
| All Hourly (no standard hours) employees, regardless of hire date. |
| Employee Mandatory Pre-tax Contribution Rates |
| 3.75% |
| City Contribution rates |
|
|
Eligible employees include non-safety general members of SDCERS hired during the following dates:
- Employees originally hired on or after July 1, 2009:
- Note: MEA, Local 127, and Unrepresented employees originally hired between July 20, 2012, and July 9, 2021, who opted to continue to participate in the SPSP-H during the Proposition B Retirement Choice window are not eligible to participate in the 401(a) plan.
Employees originally hired prior to July 1, 2009, and withdrew funds from SDCERS:
Employees will be automatically enrolled into the mandatory portion of the 401(a) Plan at a contribution rate of 1% pre-tax, which is matched 100% by the City.
401(a) Plan participants may also make voluntary contributions to their 401(a) account, which are made on a post-tax basis. Employees must input any voluntary contribution amount through SAP Self-Services. Voluntary 401(a) contributions are not matched by the City.
Supplemental Pension Savings Plan (SPSP)
Eligible employees originally hired prior to July 1, 2009, who kept their retirement funds in SDCERS, will be automatically enrolled in the mandatory portion of the SPSP Plan at a contribution rate of 3% pre-tax. Eligible employees may voluntarily contribute up to 3.05% post-tax (or 4.5% post-tax for eligible employees originally hired prior to April 1, 1986). Voluntary contribution amounts are input through SAP Self-Services.
The City of San Diego matches all employee SPSP contributions 100% (City contributions are made on a pre-tax basis). Employees may make one withdrawal of their SPSP contributions per calendar year after two years of participation (note, the City match portion is not available for withdrawal). Loans and hardship withdrawals are also available from this plan, subject to IRS guidelines.
Voluntary Defined Contribution Plans
The voluntary defined contribution plans include the 401(k) and 457(b) Plans. All employees are eligible to participate in the City’s 401(k) plan, and all standard-hour employees are eligible to participate in the City’s 457(b) deferred compensation plan, regardless of hire date. More information regarding these plans is included below.
The City’s 401(k) Plan is an IRS-qualified defined contribution plan that allows employees to contribute monies on a pre-tax or after-tax basis for additional savings upon retirement. There is no City match. Employees choose how their contributions are invested from the same options available for the SPSP/401(a) plans as selected by the Defined Contribution Plans Trustee Board. Hardship withdrawals and loans are available for this plan. Employees may make pre-tax or after-tax (Roth) contributions from their pay within IRS limits. You must input any contribution amounts through SAP Self-Services.
The record keeper for the City’s 401(k) Plan is Principal; for assistance or questions regarding your 401(k) account, you may call the Principal Contact Center at 800-547-7754.
View more information about this plan:
457(b) Deferred Compensation Plan
The City of San Diego participates in the CalPERS 457 Plan. The CalPERS 457 Plan is a voluntary savings program that allows you to defer any amount, subject to annual limits, from your paycheck on a pre-tax and/or Roth after-tax basis. There is no City match. Your contributions and any earnings can benefit from the power of tax-deferred compounding. That means you don’t pay income taxes on your pre-tax investments or earnings until you start to take withdrawals, and federal tax-free withdrawals of your Roth after-tax contributions and any earnings when you retire.
The CalPERS 457 Plan is designed with your interests in mind, including:
- Easy payroll deduction of contributions.
- Pre-tax contributions and earnings that can benefit from the power of tax-deferral.
- A Roth after-tax contribution option.
- A simplified, low cost “all in” fee structure.
- Access to dedicated Account Managers who can help with your retirement saving strategy and integrate it with your existing defined benefit planning.
- Access to financial learning resources, provided by Voya.
Visit the CalPERS 457 Plan webpage for the City of San Diego for more information. To enroll or make changes to your CalPERS 457 Plan contributions, visit the SAP Benefits Enrollment Portal and select the “Retirement Savings” enrollment event to get started. Note: Please note that contributions to the 457(b) plan will lower the wage base used to calculate your 401(a) or SPSP-H contributions, thus reducing the contribution amounts to those plans.
You can schedule a personal phone appointment to review and discuss your retirement saving strategy with your dedicated Account Manager for the CalPERS 457 Plan, Selam Berayes, by visiting cityofsandiego457.timetap.com or calling 888-713-8244 ext. 1. If you have questions about your account, call 800-260-0659 and press 2 for a Customer Service Associate weekdays between 6 a.m. – 5 p.m. PT, excluding stock market holidays.
One-time Savings Contribution Request
All employees are allowed to make a one-time payroll contribution to one or more voluntary retirement savings accounts due to a special cash influx such as Flexible Benefits cash, Uniform Allowance, Overtime, Pay-in-Lieu or Final Paycheck. Employees are able to make contributions to their 401(k) or 457(b) Deferred Compensation plans up to the annual limit (limit is subject to changes per the IRS). To make a one-time savings contribution, please follow the instructions included in the request form: One-time Savings Contribution Request Form.
Post-employment Health Benefits
Health Reimbursement Accounts (HRA)
An HRA provides a tax-free source of funds to reimburse you, your legal spouse and qualified dependents for medical care expenses. An HRA may be used to reimburse you for qualified medical, dental, or vision out-of-pocket expenses (deductibles, co-payments, co‑insurance, etc.). It also covers premiums for qualified medical, dental, or vision insurance, Medicare Part B and Part D, Medicare supplement plans, and tax-qualified long-term care insurance. Claims may be submitted following the separation of service from the City of San Diego.
Retiree Medical Trust
Eligible non-safety and legislative employees hired on or after July 1, 2009, contribute 0.25% pre-tax, which is matched 100% by the City.
The Retiree Medical Trust account is administered by Voya/TASC, which can be contacted at 833-232-4673. You may access your account at www.voya.com/ws/myhra.
Option C
Eligible employees who were hired prior to July 1, 2005, and who elected Option C will receive an allocation to their HRA account when they meet the applicable age and years of service requirements. You will receive an enrollment packet from your trust account administrator within 60 days of funding. Please contact the Risk Management Department Savings Section at 619-236-6600 if you have not received your packet within 60 days.
Option C trust account administrators are as follows:
- For unrepresented/unclassified employees and deferred vested employees, call Voya Financial Health Account Solutions at 833-232-4673 or visit www.voya.com/ws/myhra
- For represented employees other than Local 145 members, call Gallagher at 844-342-5505
- For Local 145 members, call the IAFF-MERP Administrator at 425-367-0743
Other Retiree Health Plans (Options A and B)
Options A and B are defined benefit-style retiree health plans for eligible employees hired prior to July 1, 2005. SDCERS manages the health reimbursements for eligible retirees. For more information, contact SDCERS at 619-525-3600 or toll-free at 800-774-4977 or visit the SDCERS website.