Matching & Vesting Schedules
MATCHING SCHEDULES
There are three kinds of contributions:
- Mandatory employee contributions (pre-tax)
- County mandatory matching contributions
- Voluntary employee contributions (after-tax)
MANDATORY EMPLOYEE CONTRIBUTIONS
Each new participant is required to contribute to the Retirement Plan. This pre-tax contribution is made through payroll deduction. The mandatory contribution amount automatically increases with your length of employment with the County, as shown in the table below.
| YEARS OF SERVICE COMPLETED | EMPLOYEE MANDATORY CONTRIBUTIONS | EMPLOYER MATCHING CONTRIBUTIONS |
|---|---|---|
| Upon Hire | 5% | 5% |
| 5 Years Completed | 7% | 7% |
| 10 Years Completed | 8% | 8% |
COUNTY MATCHING CONTRIBUTIONS
The County contributes an amount equal to the mandatory contributions deposited by the employee.
VOLUNTARY EMPLOYEE CONTRIBUTIONS
The plan permits (but does not require) you to make voluntary contributions through payroll deduction only. However, these contributions are made with after-tax dollars, not pre-tax dollars. Also note that your after-tax voluntary contributions are NOT matched by the County. Unlike the mandatory and County matching contributions, your voluntary dollars can be withdrawn from the plan.
VESTING SCHEDULE
Vesting refers to your ownership of the County's contributions and earnings. You are always 100% vested in your own contributions and earnings. The County funds are not yours right away, but you gain vesting in them after five years of service.
You automatically become 100% vested in the County's contributions and their earnings in one of the following ways:
- by reaching normal retirement age of 55;
- if you are an appointed or elected official (see note* below);
- if you terminate employment because of disability, if subsequently determined by the Retirement Board to meet the definition of totally and permanently disabled; or
- if you die while employed
If none of these four circumstances applies to you, then your vesting is calculated according to the following schedule:
| YEARS OF SERVICES | VESTING % |
|---|---|
| Under 5 Years | 0% |
| 5+ Years | 100% |
Each year of service is measured from your appointment date (also called benefit seniority date). If you are not 100% vested when you leave employment, you forfeit the value of your non-vested County contributions. For example, if you are 0% vested when you leave, you will receive 0% of the current value of the County's contributions to your account; the County's contributions (called forfeitures) will be redistributed to all remaining County employees with at least five years of service as "additional County contributions" in their accounts.
If you are a rehired former Larimer County employee, you will receive additional vesting credit for ELIGIBLE FULLY COMPLETED YEARS OF SERVICE from your previous period of employment. Contact the Human Resources Department for more details.
*Elected and appointed officials are 100% vested during their tenures as an elected/appointed official. Your actual vesting is determined by your employment status as of your termination date.
