RETIREMENT All non-sworn employees of the City of Sterling are covered under the Federal FICA program. This withholds 6.2% for Social Security and 1.45% for Medicare. The City matches that contribution. In addition, regular employees working 40 hours or more per week and employed over a year by the City are eligible to receive a supplemental retirement benefit upon reaching the age of 59 ½ but not available till leaving employment with the City of Sterling. This plan is arranged and funded by the City of Sterling with no contribution from covered employees. The covered employee directs the investment of the funds. The plan is portable and is fully vested to the employee immediately. Upon separation from the City, the funds become the property of the employee. This plan is not available to part-time or seasonal employees.
Retirement for classified or sworn employees is covered under the Fire and Police Pension Association and governed by the board of that association under statutes established by State of Colorado. The employee makes a contribution of 10 1/2% and the City matches 8% contribution of the base rate of pay increasing 1/2% in 2020 and 2021. In 2022, the employee contribution will be 12%. The City and the employee also make a matching contribution of 1.45% for Medicare purposes.