ITHP Waiver and 50% IndicatorAdditional FDNY Pension System Contribution Plan
ITHP Waiver and 50% Indicator are two plans that allow you to contribute additional money from your bi-weekly paycheck directly into the FDNY pension system. ITHP Waiver contributions are tax deferred. 50% Indicator contributions are not tax deferred. Both earn and compound interest at a guaranteed 8.25% rate. At retirement, it can be taken out as a lump sum or annuitized, thus creating a larger pension for the member. Both of these plans are only available to Improved Benefits Plan (hired after 6/30/81) members. It's easy to enroll. Just fill either plan's form or both, which are listed below for download. Print and forward to FDNY Pension Bureau. Do the same thing if you wish to discontinue at any time.
About the ITHP Waiver
The ITHP Waiver allows members to contribute an additional 5% of your gross salary into your pension account. It accumulates & compounds interest at a guaranteed 8.25 % rate. These contributions are covered by section 414(h) of the IRS Code, and are therefore federally tax deferred. Because of the tax deferral (you pay the federal tax only when you withdraw it in the future), your actual rate of return is nearly 12% annually for those in the 28% federal tax bracket. See above paragraph for more info.
Download ITHP Waiver here.
About the 50% Indicator
The 50% Indicator allows members to contribute an additional percentage of your salary into your pension account, in accordance with the rates on the below chart, which is based on your age when hired. It accumulates and compounds interest at a guaranteed 8.25 % rate. However, these contributions are NOT covered by section 414(h) of the IRS Code, and are therefore subject to immediate federal, state and city income taxation. See paragraph at top of page for more info.
Stephen J. Cassidy
Joseph A. Miccio