General Plan Information
- Download Deferred Compensation Plan highlights [PDF]
- What is a deferred compensation plan?
- What is the pre-tax contribution option?
- What is the post-tax designated Roth option?
- How do I enroll?
- What is the minimum and maximum amount I may defer?
- What is the "catch-up" provision?
- Can I change my contribution amount?
- What if I need to make investment changes?
- What are my investment options?
- How can I get help choosing my investment options?
- Advisory service fees, plan expenses, plan payment options, tax information, account tracking, and other information
- Transactions required through Empower Retirement Services
- Plan administrator contact information
What is a deferred compensation plan?
The Deferred Compensation Plan allows you to voluntarily set aside a portion of your income either before it is taxed or after it has been taxed. The amount set aside, plus any change in value (interest, gains and losses), is payable to you or your beneficiary at a future date. Upon becoming eligible to participate in the Plan, you may elect to defer your income on a pre-tax or post-tax basis. By doing so, you agree to reduce your salary by an agreed-upon amount. This amount may not exceed certain requirements (outlined below).
What is the pre-tax contribution option?
Contributions to your account made under the pre-tax options reduce your taxable income for the year. These contributions and all associated earnings are then not subject to tax until you terminate employment and withdraw them.
What is the post-tax contribution option?
The Deferred Compensation Plan has a Designated Roth Option that permits contributions to the plan on an after-tax basis. The Roth deferrals and associated earnings can be withdrawn tax-free in the future if the requirements for a qualified distribution are met. You may designate all or a portion of your contributions to the Designated Roth Option. (More information regarding the Roth Option is available here.)
How do I enroll?
What is the minimum and maximum amount I may defer?
The regular contribution limit for those UNDER age 50 is $18,000 in 2015.
Members age 50 or older will be able to make additional contributions. The increased contribution amount is $6,000 for 2015.
You may defer a minimum of $50 per month ($25 each pay period).
What is the “catch-up” provision?
The catch-up provision is available to employees who are within three years of their normal retirement. Catch-up allows you to make up for contributions you could have made during previous years of state employment but didn’t.
The catch-up limit is double the regular contribution limit. For 2015, this equals $36,000.
You may contribute under the catch-up provision for a maximum of three consecutive years. Once you elect catch-up, if you do not utilize it for all three consecutive years, you cannot make up the amounts not utilized at a later time or with another employer.
The age 50 and over catch-up and the regular catch-up provision cannot be used in the same year.
Can I change my contribution amount?
You may increase or decrease your contribution amount once per month.
What if I need to make investment changes?
You may make transfers among existing fund options and allocation changes for future contributions once a day. There is no charge. Changes may be made by telephone via KeyTalk® at (800) 232-0859 or on the Empower Retirement Web site.
What are my investment options?
The Plan provides for twenty-seven investment alternatives. Once contributions have been allocated among these funds (in whole percentages ranging from 0% to 100%), money may be transferred across funds daily.
How can I get help choosing my investment options?
Your Plan offers access to three different levels of investment advisory tools and services called Reality Investing® Advisory Services. You can have Advised Assets Group, LLC (AAG), a wholly owned subsidiary of Empower Retirement and a federally registered investment adviser, manage your retirement account for you. Or if you prefer to manage your retirement account on your own, you can use online investment guidance and advice tools. These services provide a retirement strategy based on your investment goals, time horizon and tolerance for risk. There is no guarantee that participation in Reality Investing Advisory Services will result in a profit or that your account will outperform a self-managed portfolio.
For Advisory Service Fees, Plan expenses, Plan Payment Options, Tax Information, Account Tracking, and Other Information:
Transactions Required Through Empower Retirement Services
The following transactions must be conducted through Empower Retirement Services:
- Inactive and Retired Employees: Changing your address or your name. (Active employees: Contact your employer to change your address or name.)
- Account Withdrawals: Empower Retirement Services processes all Plan payments. Empower Retirement Services should be contacted for information on how to complete disbursement forms and for the status of pending payments.
- Hardship withdrawals
To contact Empower Retirement Services, call (800) 232-0859 and remain on the line.
The Division of Retirement and Benefits is responsible for the overall administration of this plan. To contact the Juneau Division of Retirement and Benefits office, call (800) 821-2251, or (907) 465-4460 from Juneau.