We put these FAQs together to help you understand how furlough days might affect your DERP Pension Benefit – now or down the road. If you still have questions after reading through it, we’re always here to help.
What are furlough days?
Furlough days are mandatory unpaid days designated by the City and County of Denver (city.)
How will furlough days affect my DERP Pension Benefit?
Furlough days don’t impact your service credit – you’ll still earn the same service credit for the pay period. However, your salary for a pay period with a furlough day will be lower, and that could affect the average monthly salary component of your benefit calculation.
If a furlough day falls within your highest 36 or 60 consecutive months of salary (used to calculate your benefit), it could slightly reduce your DERP Pension Benefit. You can avoid this by purchasing your furlough days.
When can DERP calculate the cost of a furlough day?
We can only calculate the cost after the furlough day has occurred. We need the date and the amount of missed salary to determine the total.
How much does it cost to purchase a furlough day?
The cost is based on the total employee + employer contribution rate multiplied by the salary you missed for that day. If you don’t purchase the furlough day by June 30, 3% interest is added to the cost annually.
Is there a deadline to purchase furlough days?
You can purchase furlough days anytime while you’re still working for the city. Once you separate from employment, you can no longer purchase them.
Do I have to purchase furlough days?
No, it’s completely optional.
How do I purchase furlough days?
You have three options:
- Pay with cash.
- Send a check made payable to DERP.
- Roll over funds from a qualified retirement account, like the city’s Summit Savings 457(b) program.
What do I need to do if I want to purchase furlough days?
Email us at Help@DERP.org. Include a copy of your payslip(s) showing the furlough day and the amount of missed salary. We’ll calculate the cost and go over your payment options with you.