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What is a 457(b) Deferred Compensation Plan?
The City’s 457(b) Deferred Compensation Plan is a voluntary retirement plan that allows employees to make contributions into a retirement savings account established on their behalf. Contributions are made on a pre-tax or post-tax basis and all earnings are tax-deferred until withdrawn. The amounts accumulated on the employees behalf can be distributed after retirement or after another qualifying event, such as separation from service or death.

Participants may contact their department representative for prospectuses, which contain complete fund information, including charges and expenses. Participants are encouraged to read the information carefully before investing or sending money.
See Deferred Compensation Voluntary Plan Summary

Deferred Compensation

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1. What is a 457(b) Deferred Compensation Plan?
2. Who is eligible to participate in the Plan?
3. How do employees enroll in the Plan?
4. What is the minimum dollar amount employees can contribute to the Plan?
5. What is the maximum dollar amount employees can contribute to the Plan?
6. How do participants increase or decrease their contribution amount?
7. Can participants stop contributing at any time?
8. Can employees roll over other defined contribution plans into the City’s Deferred Compensation Plan?
9. When are employees eligible to receive in-service distributions of their account under the Plan?
10. When are employees eligible to receive after-service distributions of their account under the Plan?
11. What do participants need to do when they become eligible for a distribution from the Plan?
12. Once a participant chooses a payment method, can they change how they would like to receive their benefits?
13. When are participants required to begin receiving distributions?
14. What is a Systematic Withdrawal Option (SWO)? How and when are benefits paid under SWO?
15. Can participants roll their benefits into another plan?
16. How do participants obtain paperwork for a distribution for an unforeseeable emergency withdrawal?
17. How can participants find out more about their distribution options?
18. When are participants subject to taxation?
19. How does a divorce affect a deferred compensation account?
20. How will amounts awarded to a former spouse be taxed as a result of a divorce?
21. Does the City’s Deferred Compensation Plan offer loans?
22. What happens to an account if the participant dies?
23. How do participants add or change their beneficiary under the Plan?