Deferred Compensation is a tax-favored supplemental retirement savings program that allows public employees to contribute a portion of their salary, before Federal taxes, to a retirement account. Provided for by Internal Revenue Code Section 457, and offered to Manatee County employees, this tax-deferred program is designed to help build your own additional financial security. Any permanent employee who is interested in the benefits of a supplemental retirement program can participate. Board of County Commissioner employees must contact Employee Health Benefits for more information. Other employees see your employer's Insurance Coordinator.
Legislative Update Dramatically Enhances Retirement Savings Opportunities.
Economic Growth and Tax Relief Reconciliation Act (EGTRRA) of 2001 is comprised of many updates to the Internal Revenue Code, but this notice focuses on the key issues relevant to 457 deferred compensation and other retirement plans.
Plan Deferral Limits
Expanded Plan Portability
Taking into consideration the frequency in which individuals change jobs today, the legislation removed barriers that once existed between plans. Beginning in 2002, rollover of funds to and from 401(k), 403(b), governmental 457 and IRA plans will be allowed. Upon separation of service, or another triggering event, an individual will have the option of completing a direct rollover to a 401(k), 403(b), IRA, or another governmental 457 plan. Pre-legislation, 457 plans could only be moved to another 457 plan. Additionally, after-tax monies in 401 plans will now be eligible for rollover.
Please note that the 10% premature withdrawal penalty applicable to IRAs and other qualified plans will continue to apply to these amounts when rolled into a governmental 457 plan. Similarly, the withholding rules applicable to qualified plans will apply to governmental 457 plans. Therefore, 20% mandatory withholding applies to eligible rollover distributions paid directly to individuals.
Pension Reform Quick Reference
This notice serves as only a summary of certain laws specific to retirement plans. For more information on how pension reform may affect the provisions of your retirement plan, please see your Deferred Compensation representative.
The Board of County Commissioners' employees have four Deferred Compensation companies for participation. Brochures of each company may be obtained from Employee Health Benefits at ext. 6403. All enrollment forms for elected company must be returned to Employee Health Benefits for processing to Payroll and to the elected company.
NOTE: In July 2019, we will be moving to a single provider, Voya Financial. Refer to the document below for information about this transition and upcoming information sessions.
Mass MutualPlan No.: 0107790
ICMAPlan No.: 300795
Representative: Gabriel Alba
NationwidePlan No.: 0037018001
Representative: Terry Terry
Fidelity InvestmentsPlan No.: 73934