Current Plan Documents:
- Plan Contribution Limits (2017 & 2016)
- Default Investment (New Enrollments)
- 457 Participation Agreement (6-1-14)
- 457 Loan Policy Administration (9-7-17)
- Complete 457 Plan Document (6-1-14)
- Summary 457 Plan Document (6-1-14)
- 1st Amendment - NRA for Public Safety Officers (9-15-17)
Frequently Asked Questions:
What is 457 Deferred Compensation?
The 457 Deferred Compensation Plan is an employer-sponsored retirement plan that allows public employees to defer (postpone) receiving a portion of their current compensation until retirement or separation from service. The concept behind deferring some of your current compensation until the future is — during your peak earning years you'll most likely be in the highest income tax bracket of your lifetime. By deferring receipt of a portion of your current compensation, you'll pay taxes on this income in retirement when you may be in a lower tax bracket.
Even though you may already be participating in your employer's mandatory retirement plan, such as the CCOERA 401(a) Defined Contribution Retirement Plan, at some point in your lifetime you'll need to begin saving money for retirement to supplement your primary plan. Remember, your employer's mandatory plan is meant to provide a foundation for your retirement – just one of the sources that will fund your retirement years.
As a general rule of thumb, you can expect that your mandatory retirement plan will cover about one third of your retirement income needs. Social Security, assuming you receive a benefit, should provide about one third of your retirement income – the final portion will consist of investments that you have made in addition to your contributions to the retirement plan and Social Security. Of course, if you're planning an early retirement your commitment to supplemental retirement savings will have to be that much stronger, because you'll be funding those years on your own.
As a public employee you are eligible to participate in CCOERA's 457 Deferred Compensation Plan. The Plan is designed to help you save money for retirement more effectively by utilizing special income tax features in your favor. The CCOERA Deferred Compensation Plan provides a public employee with all of the key elements for a successful savings program:
- Automatic, regular contributions through payroll reduction
- Tax-deferred contributions
- Tax-deferred growth