Tier 2 - Reduced Contributions - New York City Police Pension Fund

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	HOW CAN YOU REDUCE YOUR PAYROLL DEDUCTIONS If you desire to increase your take home pay, you may elect to reduce your required employee contributions by the amount required for federal Social Security (FICA) contributions. If your required employee contributions are less than your FICA contributions, by electing this option you will not be making any contributions to the Police Pension Fund. For example, let's assume you are normally required to contribute 2.5% to your retirement plan, and you are required to pay 7.65% of your salary to Social Security (FICA), by electing this option, you would no longer be making employee contributions because they are less than your FICA contributions. If your employee contribution rate is greater than the FICA rate you would be contributing the difference to the retirement plan. Should you elect this option, your Social Security benefits will not be affected. However, the value of your retirement allowance will be reduced because it is based in part on your required employee contributions and the associated interest. During any calendar year after maximum Social Security (FICA) contributions have been matched, pension contributions will resume until the end of the year. To reach the maximum benefits, contributions are required for the first twenty (20) years. They are voluntary thereafter.