When you retire, you'll want to maintain the lifestyle you currently have. Social Security and the Florida Retirement System are not intended to replace all of your income at retirement. It is wise to start a savings plan now. The Deferred Compensation Plan is a tax deferred savings plan that can be used at retirement to supplement your Florida Retirement System and Social Security benefits.
Eligibility
All Miami-Dade County employees are eligible to participate in this plan. There is no waiting period or minimum number of hours you must work bi-weekly.
Plan Features
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Contributions are taken from your gross salary before Federal Withholding taxes are calculated.
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Your contributions are invested in the products of your choice.
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You don't pay Federal Withholding Income taxes on your investment contributions or earnings until you receive the money.
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Social Security taxes on contribution amounts continue to be deducted from your gross salary.
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Governed by Section 457 Internal Revenue Code.
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Minimum Contribution: $10 per pay period
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Maximum Contribution: 100% of your gross taxable salary or $16,500 (whichever is less).
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What happens to the money I contribute?
You choose between two providers, International City Management Association Retirement Corporation (ICMA-RC) or
National Association of Counties (NACo), administered by Nationwide Retirement Solutions (NRS). You may contribute to both providers if you wish, as long as you do not exceed the total maximum annual contribution.
Each provider offers a number of investment options, including fixed funds, stock funds, bond funds, mutual funds, and others. You may wish to seek the advice of an accountant or other professional for investment assistance.
Both ICMA-RC and NRS have representatives available to meet with plan participants one-on-one to discuss your financial objectives. Contact your DPR for the name and telephone number of the plan representative(s) assigned to your department. In addition, onsite representatives are available in the Benefits Administration Unit. Please see page 2 of this Handbook for times and contact information.
Payouts
Once you retire or separate employment, you become eligible for payments from your account. There is neither a minimum age requirement nor waiting period for you to begin receiving payments.
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You are no longer required to select a payout commencement date. At the time you are ready to begin receiving your payout, simply contact your plan provider.
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Once you are eligible to receive payments, you may select from a variety of payment options. You may receive a lump sum, installment payments, irregular payments or guaranteed monthly payments for life.
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You may rollover funds from another eligible retirement plan, your FRS DROP account, or IRA into the 457 plan. You may also rollover your 457 funds into another eligible retirement plan or to an IRA.
"Catch-up" Provision
If you are within three years prior to the year you designate for normal retirement, you may be eligible to take advantage of a special "catch-up" provision which may allow you to contribute up to $33,000 for 2009. You may not participate in the "catch-up provision" beyond age 70½. Additionally, there is an age 50 "catch-up" provision that permits an employee to contribute an extra $5,500 per year, if at least age 50. You may not utilize both "catch-up" provisions simultaneously. Contact the Benefits Administration Unit at 305-375-5633 or 305-375-4288 or the on site deferred compensation plan representative for more information.
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Unforeseeable Emergency Withdrawal
You may be able to withdraw money from your account while you are still working if you have an unforeseeable emergency. An unforeseeable emergency is a severe financial hardship to the participant resulting from a sudden and unexpected illness or accident of the participant or of a dependent of the participant, loss of the participant's property due to casualty, or other similar extraordinary circumstances arising as a result of events beyond the control of the participant. The amount of money you could receive is limited to the amount necessary to relieve the hardship.
An Unforeseeable Emergency withdrawal is very difficult to receive, and you should not depend on the availability of your funds. Some examples of an Unforeseeable Emergency are health care and property losses due to theft or fire, which are not covered by insurance.
Employees can contact their provider directly to request an emergency withdrawal packet.
Change Your Payroll Deductions
There are three methods in which employees can make payroll changes to their deferred compensation payroll deduction. The first way is to call the plan provider at their toll free number. Secondly, if you are an ICMA-RC participant you can also effect your change on their web page. Additionally, employees are still able to make their changes by completing the appropriate change form for their provider and submitting it to the Benefits Administration
Unit. ICMA-RC: (800) 669-7400, NRS: (877) 677-3678.
The following are change forms for the providers of deferred compensation. Please select the appropriate form for your elected provider:
Plan Comparison
Deferred Comp Loan FAQ's
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