Is the stipend of $500 per month/30 months taxable income?Yes. The $500 retirement incentive payments will be considered salary continuation and will be taxed based on the employee’s W-4. Federal Income Tax, State Income Tax and FICA (Social Security) will be withheld by the City.
Can the City delay the program until January, 2010 for tax purposes?No. The City must begin the program as soon as possible in order to begin generating budget savings in 2009. If someone who separates from the City is scheduled to receive a large payout in accrued sick and vacation time, one option is to defer that payment into a qualified 457 deferred compensation retirement plan in order for it to be considered tax deferred. Eligible participants should consult a tax advisor to decide what is best for them financially. The program has a 45-day deliberation period following City Council enactment for opting-in, and a 7-day window to rescind participation to allow time to consider whether or not to participate.
How and when can I enroll?
Following City Council enactment, the Citywide Payroll Division of the Controller’s Office will distribute forms and procedures for enrollment.
When will I get the first stipend?
Incentive payments will be paid on the 1st payroll of each month. The first installment will be within 60 days of the separation from service date.
View the installment calendar.
Is there a survivor benefit?
No. The incentive payment will not be considered part of your pension benefit. This is cash compensation ("salary continuation") from the City which would end upon untimely death, the same as normal salary compensation from the City would.
How do I know if I’m eligible?
You are eligible if you are currently a full-time employee covered by the Denver Employees Retirement Plan and meet the “Rule of 75” (at least 55 years old and whose age and years of service to the City add up to at least 75) or are at least 65 years old.
How does this program affect half-time employees?
Individuals must be full-time employees in order to be eligible for the incentive payments.
Can I purchase “service years” to be counted toward eligibility for this program?
Purchasing additional years of service will increase the amount of an employee’s monthly pension benefit, but such purchased service does not allow the employee to meet the Rule of 75 sooner than he or she would without purchasing service.
Are DROP participants eligible?
Employees who were in DROP I and are still employed by the City do meet the eligibility criteria for the incentive program.
Can I still receive medical benefits?
DERP contributes toward retirees' group health insurance, for both under-65 retirees and Medicare-eligible retirees. The amount of DERP’s contribution is determined by your years of service to the City. Contact DERP at
mbrsvs@derp.org or (303) 839-5419 for more information.
How will furlough days impact salary calculations?
Employees have the option of offsetting the impact of furlough days on the 36-month-average-salary calculation used by DERP, by paying DERP the full 11% of payroll charge for the 8-hours of salary not received from a furlough day. Contact DERP at
mbrsvs@derp.org for specific information on the amount of payment you would need to make.
Do military credits count toward retirement?Employees who are away from City employment on military duty may purchase service at their own expense to offset that time. Various rules cover this situation. Employees to whom this applies should contact DERP at mbrsvs@derp.org to get specific information about their circumstances.
Can I come back and work for the City part-time if I enroll? How many hours?
In a few instances, a department manager may choose to hire back someone who separates from the City under this program for the purposes of training a new employee and ensuring a smooth transition. The person will be hired back on a temporary basis as an employee (not a contractor) and cannot work more than 1,000 hours in a calendar year. This part-time status will not include health benefits and will not impact pension benefits as long as the employee does not work more than 1,000 hours during the calendar year ending December 31, 2010.
The date of separation is November 30 which is a Monday. Do I have to work Monday to be paid for the holiday and furlough day of the week prior?
Ordinarily to be paid for a holiday, employees have to work (or receive paid leave) on their scheduled workdays before and after the holiday. Since Friday the 27th is an unpaid furlough day, employees need to be at work on the work day before Thanksgiving in order to be paid for that holiday.
When will I get first check for pension, incentive, as well as sick/vacation payout?
The first incentive check will be January 8, 2010. We will be working diligently to get your sick/vacation payout by the end of the year.
If I become eligible between November 15 and November 30, can I still participate and advance enroll in the October 1 – November 15 timeframe?
Yes. Anyone who meets the eligibility requirements by the required-separation-date of November 30, 2009 will be eligible for the incentive payments. You can, and must, "pre-enroll" by the November 15 enrollment deadline.
How will I receive my incentive payments?
Employees that currently have direct deposit will receive the $500 installment according to their current designation. If your current account information is changing or you do not have a direct deposit established then you are required to complete the
Direct Deposit Form with a voided check for the account you would like the Direct Deposit to be deposited.
View/download Direct Deposit Form.
How do I change the rate of withholding on my Incentive Payment?
If, after speaking to a tax advisor, you find you must change the rate of tax withholding on your Special Incentive Payment you must submit a new
Federal Form W-4, Employee’s Withholding Allowance Certificate. If you want the change to go into affect prior to separation you may log on to
DOT (within the City's network) and make the change through the Self Service portal. If you want the change to be affective after separation, with the first incentive payment, please submit a W-4 form to the Citywide Payroll Operations and Administrative Service Division between December 13, 2009 and December 26, 2009. W-4 changes will be entered as they are received, there will be no retroactive calculations. Please contact a tax advisor if you have any questions concerning your withholding.
Return to TopWill I be paid for the 2009 Thanksgiving Holiday?
Whether or not you are paid for the holiday depends on your last day worked. If your last day worked is November 25, 2009 you will not be paid for the holiday, but if you work on November 30, 2009 you will be paid for the holiday.
Where can I get more information?
We will continue to send announcements through e-mail bulletins,
InSight and other internal channels. You can send additional questions about the retirement incentive program to
retirement@denvergov.org. If you have questions concerning your DERP status or pension benefit, please contact
DERP at
mbrsvs@derp.org.