About the Plan

The San Francisco Deferred Compensation Plan (SFDCP) enables you to:

  • Supplement your pension and save for your future during your working years.
  • Contribute pre·tax and/or Roth 457(b) after-tax dollars.
  • Take advantage of tax-deferred growth potential.
  • Invest in a broad array of options.

The SFDCP has contracted with Prudential Retirement® to administer the Plan.

Eligibility & Enrollment

You are immediately eligible to join the SFDCP if you are a current full- or part-time employee of the City and County of San Francisco*. The SFDCP is a voluntary plan designed to supplement your pension. It enables you to save and invest pre-tax dollars, Roth 457(b) after-tax dollars or both through automatic payroll deductions. To plan ahead, see the 2017 Payroll Deductions Schedule and the Payroll Deductions Calculator.

*Excluding City College and Unified School District employees.

How to Enroll

Online:
  1. Download, complete and sign the Enrollment & Beneficiary Form.
  2. Fax the form to: 866-439-8602 or
    mail it to:
    Prudential
    1145 Market Street, 5th Floor
    San Francisco, CA 94103
By Phone:

Call 888-SFDCP-4U (888-733-2748).

In Person

Visit 1145 Market Street, 5th Floor.
Walk-ins welcome.

Contributions

In 2017, you can contribute up to 61% of your gross compensation or up to the IRS contribution limit ($18,000 in pre-tax and Roth 457(b) after-tax dollars combined), whichever is less. But if you meet certain conditions, you may be able to save even more.

Make a contribution today!

Register/Log In

Maximize Your Contributions

To contribute as much as you're allowed in 2017, you must calculate your payroll deduction per pay period. For example, if you are under age 50 and wish to contribute the maximum allowed ($18,000 for 2017), you divide $18,000 by the number of pay periods left in the year. If you are at least age 50 by December 31, divide $24,000 by the number of pay periods remaining. (Please refer to the 2017 Payroll Deductions Schedule for details. The schedule will tell you when the change has to be made in order to become effective with your next paycheck.)

Note: Even if you contributed the maximum in the past, you must ensure that your per-pay-period payroll deduction is enough to maximize your contributions this year.

Roth 457(b) After-Tax Contributions

Unlike traditional pre-tax contributions, Roth 457(b) contributions enable you to save money that's already been taxed in exchange for potentially tax-free withdrawals. You can choose traditional pre-tax, Roth 457(b) after-tax or a combination of both as long as your total contributions stay within IRS limits.

Learn more : > Roth 457(b) FAQs> Roth Contributions
Calculator

Catch Up on Your Savings

The SFDCP offers three ways you may be able to “catch up” on your contributions:

Age 50+ Catch-Up*

If you are (or will be) at least age 50 in 2017, you may contribute up to $6,000 above the standard annual limit ($18,000). This means that if you will be 50 or older by December 31, 2017, you can contribute as much as $24,000 during the year.

Special 457(b) Catch-Up*

Starting three years before your “normal” retirement age, if you have not always contributed the maximum allowed to your account each year, you may be able to contribute a total amount equal to twice the annual limit. For example, in 2017, if you qualify, you may contribute up to $36,000 ($18,000 X 2).

You must contact a SFDCP Retirement Counselor to see if you are eligible.

Military Catch-Up

If you were on leave from the City & County due to active military duty, you may be eligible for this type of catch-up.  Please call your SFDCP Retirement Counselors at 888-733-2748, option 2, to learn if you qualify.

*Important: You cannot combine the Special 457(b) Catch-Up and the Age 50+ Catch-Up contributions in the same tax year. Neither Prudential Financial nor its representatives are tax or legal advisors. We encourage you to consult your legal or tax advisor with specific questions.

Distribution Options

When you stop working for the City and County of San Francisco, you don't have to take immediate action with your SFDCP account. While you won't be able to add money (unless you roll in balances from another “qualified” retirement account), you can leave your money invested in the Plan and won't be required to start withdrawing until you reach age 70½. (At that time, your annual federally required minimum distribution (RMD) amount will be calculated for you, so please keep your address current on your account.)

Review full details on your distribution options, including rules on tax withholding.

Unused vacation hours? If you have unused vacation hours prior to separating from service, you have the option to deposit them into your SFDCP account. You must complete a form. Visit the office at 1145 Market Street, 5th Floor or call 415-487-7500.

Considering a rollover? Review Questions to Ask Before a Rollover Out.

Separating or retiring?

You can:

  • Speak to a SFDCP Retirement Counselor about your options.
  • Keep your money in the SFDCP.
  • Take a partial withdrawal.
  • Set up installment or periodic withdrawals.
  • Receive a full “lump-sum” distribution.
  • Invest in an annuity.
  • Roll your money over to a new employer's retirement plan or an IRA.

Loans

As a San Francisco Deferred Compensation Plan (SFDCP) participant and active employee, you may be able to access your funds through a loan from the Plan.

When you take a loan through the SFDCP, you're borrowing money from your own account and paying yourself back with after-tax dollars through automatic payroll deductions. While receiving a loan can seem like an attractive option, be aware that doing so may affect the potential growth of your retirement account.

Please review the SFDCP Loan Guidelines to fully understand the consequences of taking out a loan. If you fail to repay the loan (or default), you may have to pay substantial income taxes on the outstanding balance of the loan and you will not be allowed to take a loan from your account again.

Read Less Read More
You may borrow up to $50,000 or 50% of your account balance, whichever is less.1
Your Plan allows you to take One loan every 12 months; up to two loans outstanding at a time. Set-up fee: $50 for each loan.
Annual maintenance fee $25/year for each loan ($6.25 per quarter).
Method of repayment Payroll deduction
Tax consequences If a loan defaults, it will be treated as a deemed distribution and reported as taxable income in that year.
Prepayment available Yes—only to pay the loan amount in full.
General purpose loan

Interest rate: Prime + 1%2
Minimum loan: $1,000
Maximum loan: $50,0001
Repayment period:
0 to 5 years3

Primary residence loan

Interest rate: Prime + 1%2
Minimum loan: $1,000
Maximum loan: $50,0001
Repayment period:
0 to 15 years3

  1. The maximum amount available to be borrowed is the lesser of: a) $50,000 (reduced by the difference between the participant's highest outstanding balance of loans from the Plan during the one-year period ending on the day before the date on which such loan is made, or the participant's outstanding balance of loans from the Plan on the date such loan is made); or b) 50% of your account balance.
  2. Interest is paid back to participant's account.
  3. Loan payments may be suspended for a participant who is on an approved unpaid or partially paid leave of absence. You must contact SFDCP Staff at 415-487-7500 or team.sfdcp@sfgov.org to inform them of your start date and provide a copy of your approved Request for Leave and Leave Protections form.

 

The Basics

Minimum account balance: $2,050
Minimum loan: $1,000
Maximum loan: $50,000 or 50% of your account balance, whichever is less.
Interest rate: Prime + 1%
Repayment period: General-purpose loan: five years; primary-residence loans: 15 years

For more information call 888-SFDCP-4U. To apply, log in to your account.


Questions?

Please refer to the SFDCP Loan Guidelines for more information on taking a loan from your account. To request a loan, you must log in to your account.

For assistance with requesting your loan online, you may call 888-SFDCP-4U (888-733-2748), option 1 to speak with a participant service representative.

If you wish to speak with an SFDCP Retirement Counselor before you request a loan, click here or call 888-SFDCP-4U (888-733-2748) and select option 2 to schedule an appointment.

Neither Prudential Financial nor any of its affiliates provide tax or legal advice for which you should consult your qualified professional.

Retirement Counselors are registered representatives of Prudential Investment Management Services LLC (PIMS), Newark, NJ, a Prudential Financial company.

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