City of Fort Worth Retirement Plans
The city has its own retirement pension system (defined benefit plan) for its eligible employees. This benefit will assist employees in helping provide for a financially secure future. Benefits paid out of the fund come from employee contributions, city of Fort Worth’s contributions and any interest earned on investments. All eligible employees are vested after five years of service. For normal retirement, General and Fire employees may retire when any combination of years of service and age equals 80. Police employees may retire after 25 years of service.
The city offers you a 457 Plan for setting aside additional pre-tax or post-tax (ROTH) money towards your retirement.
The 457 Plan concept is simple: you contribute a part of your salary now into the plan where it grows until you withdraw it during retirement. Contributions and earnings made before tax and are not taxed until the money is withdrawn. Contributions and earnings made post-tax (ROTH) are taxed but the money is not taxed at withdrawal provided you have held the account for five years.