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Deferred Compensation Plan

VALIC
Great West
ING
Nationwide
T.Rowe Price
Schwab (Self-Directed Brokerage Account)

   

Deferred Compensation Plan

 

For More Information

You can also call the Deferred Compensation Office for additional information at 1-850-413-3162 or toll-free at 1-877-299-8002.

 

A number of factors affect how much money you will need for a comfortable future. The Deferred Compensation Plan allows you to set aside tax-deferred income to supplement your Florida Retirement System and Social Security benefits. In this Plan participants have the opportunity to determine an investment strategy based on their pre-taxed contributions. The State does not match the participant's contribution. The plan offers you:

  • A pre-tax savings advantage. You don't pay current federal income tax on what you choose to save through the Deferred Compensation Plan (also called a "457" plan) and earnings on your savings accumulate tax-deferred until you receive a distribution.
  • Convenient payroll deductions. Your contributions come only from each paycheck throughout the year.
  • Flexibility. You decide how much you want to save - up to the annual IRS contribution limits. You also decide how you want to invest your account balance among the six different investment companies and their broad array of investment funds. Change your contributions or investment instructions any time.
  • Portability. Take your 457 Plan account with you when you leave the state - in cash, or as a rollover to an Individual Retirement Account (IRA) or another employer's qualified retirement plan that accepts rollover contributions. Once you leave employment you may also leave your money in the Deferred Compensation Plan, or you can take a distribution at any time without an IRS penalty.
  • The opportunity to roll other pretax savings into the plan. You may roll over qualified DROP, 401(k), 403(b) or traditional IRA accounts.

Learn more about the advantages the Plan can offer by visiting the Deferred Compensation Plan Web site. The site has a wealth of information and tools like the:

  • Paycheck Calculator™ – to help you determine the cost and tax savings of making tax-deferred contributions to the Plan.

Deferred Compensation Plan at a Glance

Who Can Participate

You may participate if you are appointed, elected, or under contract, and provide a service for the State of Florida for which the state pays compensation or statutory fees. This includes Other Personal Services Employment (OPS) employees. The State of Florida 457 Deferred Compensation Plan is also available to employees of:

  • division of Rehab and Liquidation
  • State universities.
  • The state Board of Administration.
  • The Tri-County Commuter Rail Authority.
  • The Suwannee River Water Management District.

What You Can Defer

  • A minimum of $10 every pay period biweekly, or
  • A minimum of $20 every pay period monthly …

… up to a maximum that is the lesser of 80 percent of your compensation or $16,500 (the maximum annual IRS contribution).

If you are age 50 or older, you may participate in the "50+ Catch-up" provision that allows you to contribute up to $5,000 more than the maximum – or up to a total of $22,000. The annual limit for the Standard Catch-up provision is $33,000.

You can defer a percentage of your pay or a flat dollar amount each pay period. You can change your contributions any time. Your accrued leave payouts may also be deferred.

Investment Choices

You have the opportunity to choose from:

  • Five investment provider companies – Great West, ING, Nationwide, T. Rowe Price and VALIC.
  • One online brokerage firm – Charles Schwab (enrollment through Nationwide).

All of the companies offer mutual funds and most offer some type of account guaranteeing principal and interest as well as FDIC products. All of the investment provider companies have zero administrative fees.

You can change your investment instructions any time.

How to Enroll

Simply call or visit the Web site of the investment provider that you have chosen. You may download an enrollment package, or call them so they can answer any questions that you may have. All representatives are licensed to enroll state employees in the Plan, and can discuss their investment products in detail. You may also call the Deferred Compensation Office at the number shown at the top of this Web page.

When You Can Collect Your Benefits

You may begin receiving distributions no matter your age, 31 days after your last day of employment with the state. Normal federal taxes will apply to any distribution.