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.

See the 457 Plan summary/FAQ for a more thorough description.

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.

NEW! Introducing Retirement@Work®

Retirement at Work

Retirement@Work is a new, simplified online platform to help you manage your contributions and investment provider choices for the 457 Plan.

To start contributing to the 457 Plan, or to change your current contributions, you must log in to your Retirement@Work account. All State employees eligible to participate in the 457 Plan can set up a secure account at Retirement@Work.


Plan Details

The State offers investment options from three providers: Fidelity, TIAA, and Voya. You may enroll in the 457 Plan at any time during the year.

To enroll in the 457 Plan, please follow the steps below:

  1. Log in to your Retirement@Work account to choose your investment provider(s) and salary deferrals. If you are a new employee, you will not be able to access Retirement@Work until you receive your first paycheck.
  2. Follow the on-screen prompts and visit the website(s) of the investment provider(s) you choose to complete your account set-up, including fund selections and assigning your beneficiaries. If you don't complete your account set-up with each investment provider you selected, your contributions will either reject or be directed to an age-appropriate target date fund.

If you have any enrollment-related questions, please call Retirement@Work at (855) 200-0135.

All State employees, except for temporary or seasonal employees, are eligible to enroll.

Maximum Contribution Amounts
2018 2019
Basic annual maximum $18,500 $19,000
Over age 50 catch-up maximum* $6,000 $6,000
Special three-year catch-up maximum* The lesser of $37,000 or $18,500 plus any underutilized contribution limits from prior years during which you were eligible to participate but did not make the maximum annual contribution for those years. The lesser of $37,000 or $18,500 plus any underutilized contribution limits from prior years during which you were eligible to participate but did not make the maximum annual contribution for those years.

* In addition to basic annual maximum.

Contribution Effective Dates

You may make changes to your contributions at any time by accessing your Retirement@Work account. Please note that changes are not automatically applied to your next paycheck but according to the Effective Date Calendar.


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.

Special Three-Year Catch-Up
If you are within three years of the year of your declared retirement age, you may increase your annual contribution to the lesser of:

  • Twice the annual limit in effect for the year, or
  • The annual limit in effect for the year plus any underutilized contribution limits from prior years during which you were eligible to participate but did not make the maximum annual contribution for those years.

The special three-year catch-up provision cannot be combined with the over age 50 catch-up provision.

To Make Your Catch-Up Contributions:

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. Log in to your Retirement@Work account to elect your new investment provider as the recipient of your future contributions. Please note when the change will be effective using the Effective Date Calendar.
  2. After your final contribution is directed to your old investment provider, contact both your old and new providers to request the forms required to complete the transfer process.

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).

Assistance with Transfers
Provider Contact
Fidelity Nicole Tassone
(401) 318-3093
TIAA John Cislo
(401) 276-3746
Voya Stephen Brown
(866) 387-9003
Active Employee Over Age 70½

You may withdraw funds before termination of employment by coordinating with your plan provider(s).

Active Employee Under Age 70½

You may not withdraw funds before termination of employment 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

Please contact your plan provider(s) to initiate a dormant account withdrawal; 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;
  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

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.

To request an unforeseeable emergency withdrawal:

Need help managing your finances? Visit the Financial Wellness page for resources such as financial workshops/webinars and ALEX® on financial wellness to get you started.

To manage contributions and investment provider choices, please access your Retirement@Work account:

Phone Number Online
Retirement at Work (855) 200-0135 retirementatwork.org/ri

To manage your fund allocations, assign beneficiaries, request withdrawals and ask general questions regarding your 457 Plan account, please contact your investment provider(s):

Investment Provider Plan Number Phone Number Online
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