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|  As a Tier I (Article II) or Tier II (Article IIA) member, you contribute a percentage of yearly earnings through payroll deductions to the 20-year plan. In order to receive maximum pension benefits, contributions are required for the first 20 years of allowable police service. Contributions may be made thereafter on a voluntary basis. The amount one contributes is based on age at appointment. Employee contributions and interest earnings on them are referred to as "accumulated deductions." The amount of accumulated deductions including interest earned on those contributions that should be in the Fund at the member's 20th Anniversary is referred to as your required contributions. Since December, 1989, your regular contributions are not subject to current federal income taxation as per section 414h of the IRS Code, but are subject to current state and local income taxation. Contributions made before December, 1989, were subject to federal taxation. However, all interest earned is federally taxable. |  |
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