Hanford PD deferred comp: get the full City match

Put in at least $75 every paycheck, because the City matches your deferred comp up to that amount for the term of the MOU. Anything less leaves City money on the table that you cannot get back later.

At a glance

• The City match is $75 a paycheck, under MOU section 2.31, for this MOU term only.
• The match counts per paycheck. Missing a paycheck means missing that match.
• Check your pay stub for the City match line. If it is not there, ask payroll.
• A governmental 457(b) has no early-withdrawal penalty once you leave the City.

Who this is for: A Hanford PD officer who contributes to deferred comp, or means to, and wants to be sure the City match is coming in.

Reviewed by Theron Morgan, CEO and founder, Avidity Capital Inc., a registered investment adviser, on 2026-10-07.

How the match works

MOU section 2.31 has the City match what you put into deferred comp, up to $75 a paycheck. You are paid every two weeks, so the match counts paycheck by paycheck. A paycheck where you put in less than the match amount loses the difference for good.

If you contribute to the Roth 457 only, check your stub for the City deferred comp line under company-paid benefits. If it is missing, ask payroll whether the match applies to Roth contributions.

The match is written for the term of this MOU. A new MOU can keep it, change it or drop it, so check each new contract.

How much you can put in

The IRS sets a yearly limit on what you can put into a 457(b): $24,500 for 2026. On top of it, a catch-up of $8,000 is allowed at fifty and over, or $11,250 in the years you turn 60 through 63. Some plans also allow a larger catch-up in the last few years before the plan's normal retirement age; you cannot use both kinds of catch-up in the same year. The plan administrator can tell you which apply.

Starting in 2026, catch-up contributions must go in as Roth for anyone whose FICA wages from the employer the year before were above the IRS wage threshold. Under the IRS final rule those are Social Security wages, and an officer who pays no Social Security on this job generally has none, so the rule is not written to reach Hanford PD officers. For 2026 the IRS also accepts a plan that measures Medicare wages in good faith, which could pull in an officer with heavy overtime. Ask the plan how it applies the rule, and whether it offers a Roth option, before you count on a pre-tax catch-up.

If your plan offers a Roth option, you can choose Roth or pre-tax for your own contributions. Ask the plan before you assume it does.

Why a 457 matters if you retire early

Money in a governmental 457(b) can come out after you leave the City without the early-withdrawal penalty that applies to most other retirement accounts. For an officer retiring years before Medicare, that is what makes the 457 the bridge between the last paycheck and the rest of retirement.

One catch: roll 457 money into an IRA and the IRA's early-withdrawal rules apply to it. Keep money you will need early inside the 457.

What the app does

The app quotes the City match as the MOU states it and marks it as being confirmed; it does not count match dollars in your plan until the firm has verified that the match is being paid. If you plan to retire early, the Retirement tab notes that 457(b) dollars have no early-withdrawal penalty.

Questions people ask

This page is education, not individualized investment, tax, legal or insurance advice. It names no products, funds or allocations and carries no client stories. Where a document or a policy is needed, an estate attorney or a licensed insurance agent is the person who prepares it. Avidity Capital Inc. drafts no legal documents and receives no commission or referral fee from insurance, estate attorneys, mortgage lenders or real estate agents. Its compensation is the member's subscription and, for members who choose it, an advisory fee for managing assets; see Form CRS and Form ADV Part 2A. Avidity Capital Inc. is a registered investment adviser.