1. Bureau Of Deferred Compensation
TAYLOR CORRY
Marketing Director
Bureau Of Deferred Compensation

2. Keys to Prepare for Retirement
Retirement lifestyle maintenance requires 75%-100% of working income
Save at least 15% of your pay
BUDGET! Make a plan to save from each paycheck
The important thing is to just start!

3. Sources of Retirement Income
FRS Pension or Investment
Social Security Income
Deferred Compensation:
457(b), 403(b), 401(k), Traditional IRA
Supplemental post-tax saving:
Roth IRA, bank savings, CDs

4. “Deferred Compensation”
Flat amount or percentage of pay is not subject to immediate income tax withholding
Income taxes are then assessed in the tax year of distribution

5. Section 457(b) of the IRS tax code
Pre-tax retirement plan available to all State of Florida and State University System employees
Voluntarily contribute income before current taxes!
Supplements FRS and Social Security
Consolidate other retirement accounts
Penalty free taxed-withdrawals at any age*
Many investment options

6. $3,587,084,938 as of 2/28/15

7. Investment Providers Nationwide Empower (Great – West) VALIC
Voya (ING)
T. Rowe Price
Charles Schwab (Self Directed Brokerage Account)
Enrollment Available through Nationwide

8. New Deferral Limits for 2015
Minimum contribution is only $20/monthly or $10/biweekly or
defer as a percentage of your pay.

9. Catch-up Contributions
50+ Catch-Up Participants age 50 and over may contribute $24,000 annually to help save even more as they near retirement.
Standard Catch-Up
The three years prior to normal retirement age* a Participant can contribute $36,000 annually.
* Participant must qualify for unreduced benefits from the FRS.
Participants cannot use both features during the same year.

10. DROP and Accrued Leave Contribute accrued and sick leave payouts
Roll in DROP accumulation within 60 days
Defer current taxes
Continued financial growth
Taxed distributions as needed

11. Deferred Compensation Plan
DROP and the
Deferred Compensation Plan
Sent to 5186 DROP members

12. Consolidate with the Deferred Compensation Plan
Rollover outside pre-tax retirement plans [403(b), 457(b), 401(k), Traditional IRA] into the Deferred Compensation Plan
Keep money within a single retirement program
Minimal fee structure
NO commission/sales, maintenance or administrative fees
Multiple investment options
Quarterly Performance Report
Competitive return rates
Easily transfer between Investment Providers and/or investments without fee or penalty

13. Distribution Options Leave money in the Deferred Compensation Plan
Money will remain invested
Same benefits as during employment
No required distribution until you reach age 70 ½
Periodic
Partial
Full
Roll-out

14. Online Enrollment and Contribution Increase

15. Bureau of Deferred Compensation Department of Financial Services
200 East Gaines Street
Tallahassee, Florida 32399
Phone:
Fax:
Web: