Deferred Compensation Plan


Overview

A deferred compensation plan (457 Plan) allows employees to accumulate tax-deferred savings for retirement. Employees can elect automatic payroll deductions (subject to IRS annual maximums), and they may enroll and/or make changes to their contributions at any time during the year.

Federal tax law requires that any money contributed to a deferred compensation plan have limited withdrawal options. Employees should view their contributions to a deferred compensation plan as a long term retirement investment account rather than a savings account. Withdrawal of funds for active employees is generally limited to severe financial hardships caused by unforeseeable emergencies.

Plan Details

The State offers investment options from three providers: Fidelity, TIAA, and Voya. The enrollment process and ongoing service for State employees is handled directly by the providers.

You may enroll in the 457 Plan and make changes to your payroll deductions at any time during the year.

Plan Provider Plan Number Enrollment Contact Online Account Access
Fidelity 35835 1-800-343-0860 netbenefits.com/atwork
TIAA 407359 1-800-897-1026 tiaa.org/ri
Voya VK0450 1-866-387-9003 ri.beready2retire.com

Any State employee that satisfies all of the following criteria is eligible to enroll:

Maximum Contribution Amounts
2017 2018
Basic annual maximum $18,000 $18,500
Over age 50 catch-up maximum* $6,000 $6,000
Regular catch-up maximum* $18,000 $18,500

* In addition to basic annual maximum.


Catch-Up Contributions

Over Age 50 Catch-Up
You may increase your annual contribution amount by up to $6,000 if you are over age 50. The over age 50 catch-up provision cannot be combined with the regular catch-up.

Regular Catch-Up
For three years before the year of your declared retirement eligibility date, but not including that year, you may increase your annual contribution to the lesser of:

  • Twice the basic annual limit, or
  • The basic annual limit plus underutilized basic annual limit in prior years participating in the State 457 Plan

The regular catch-up provision cannot be combined with the over age 50 catch-up provision.

To Make Your Catch-Up Contributions:

  1. Contact your 457 Plan provider to increase your contribution amount
  2. Complete and submit either the Over Age 50 Catch Up Request Form or the Regular Catch Up Request Form to OEB
Transfers While You are an Active Employee

Please follow the steps below if you want to transfer your deferred compensation funds from one provider to another within the 457 Plan:

  1. Contact your original provider to coordinate any adjustments to your deferral amount and/or closing your account.
  2. If you are closing an account, you must stop your deferrals with your original provider. Failing to do so will result in your deferred funds having no account to be deposited in.
  3. Open your new deferred compensation account and coordinate a new deferral amount with the new provider of your choice.

Transfers if You are a Former State Employee

If you leave State service, you are free to transfer or convert your 457 Plan assets to a non-457 Plan account. Any such actions should be coordinated through your 457 Plan provider(s).

For assistance with transfers, contact:

Provider Contact
Fidelity Nicole Tassone
(401) 318-3093
TIAA Dan Samson
(401) 276-3722
Voya Stephen Brown
(866) 387-9003

If you are an active State employee under age 70½, you may not withdraw funds before retirement except for the following circumstances:

Dormant account
You may withdraw funds from your deferred compensation account if:

  • You have less than $5,000 in your account, AND
  • You have not made any contribution for the past two years

A Distribution Election Form must be completed and submitted to OEB to initiate the withdrawal process; proof of hardship is not required

Unforeseeable emergencies/hardship
An unforeseeable emergency withdrawal request will be approved to alleviate a “severe financial hardship” resulting from an “unforeseeable emergency" as defined by the IRS, including:

  1. A sudden and unexpected illness or accident befalling you or of one of your dependents (see IRS definition of dependent below);
  2. A loss of your property due to casualty; or
  3. Other similar extraordinary and unforeseeable circumstances arising as a result of events beyond your control

According to the IRS, withdrawals for foreseeable expenses—e.g. purchase of an automobile, college expenses—are not permitted. Furthermore, emergency withdrawals will not be allowed in cases where the participant had significant control and failed to exercise prudent judgement—e.g. abuse of credit cards, obligations related to investments, business ventures, gambling debts, or any violations of the law.

An Unforeseeable Emergency Withdrawal Request must be completed and submitted to OEB to initiate the withdrawal process

Please contact your plan provider(s) if you have questions regarding your 457 Plan account:

Plan Provider Plan Number Enrollment Contact Online Account Access
Fidelity 35835 1-800-343-0860 netbenefits.com/atwork
TIAA 407359 1-800-897-1026 tiaa.org/ri
Voya VK0450 1-866-387-9003 ri.beready2retire.com