Deferred Compensation Plan
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
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:
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.
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
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
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.