How is the money in my CCOERA deferred compensation account invested?
The CCOERA Deferred Compensation Plan is a participant-directed investment plan. This means that the participant chooses the investments from a menu of options. CCOERA offers a wide range of investment options to choose from including:
- CCOERA's Book Value Fund
- Publicly Traded Mutual Funds
- CCOERA's Target Date Funds (TDFs)
- Schwab Self-Directed Brokerage Option
CCOERA's Book Value Fund is a conservative interest-bearing investment option that maintains stable value with the highest rate of return consistent with preservation of capital.
The moderate or aggressive investor may choose from several different mutual funds, with varying levels of risk and return. CCOERA offers participants mutual funds that include large and small domestic companies, as well as foreign company investments.
For the investor that's not comfortable choosing their own investment allocation there are twelve Automatic Allocation Funds to choose from. The CCOERA TDFs are a series of twelve different portfolios for varying types of investors. They were created for CCOERA by a professional investment advisor. The investment allocation (percentage in each investment) was selected by the investment advisor based on fifty years of historical data, using the efficient frontier method of asset allocation. They are intended to provide greater return with reduced risk by diversifying money into several different asset classes.
Is my 457 deferred compensation account balance subject to attachment by my employer's creditors?
No. All of the money in your CCOERA 457 Deferred Compensation account is held in a trust for the exclusive benefit of you and your beneficiary. This benefit is a result of legislation contained in the Small Business Protection Act of 1996.