Deferred Compensation Program

 As part of your employee benefits package, your employer offers you the ability to participate in the New Castle County Government 457(b) Plan. By participating in the plan, you can either start or continue saving for retirement. Enroll today and help put yourself in control of your financial future.

 Start Planning for a Comfortable Retirement! 

• IT’S EASY. Automatic salary reduction makes saving easier. Once you become eligible, you decide how much to contribute to the plan (subject to limitations under Internal Revenue Code of 1986, as amended (“IRC”) and plan limitations), money is automatically deducted from your pay and deposited directly into your plan account. No checks to write or additional deposits to worry about. 

• IT’S SMART. Contributions are deducted from your salary and are not subject to federal, state and local income tax withholding (certain exceptions may apply). This means your tax savings are immediate and you don’t have to pay income taxes on money in your plan account until you take money out of your employer’s retirement plan.* 

Since your contributions are excluded from your gross income when you get paid, you’ll pay less in tax withholding each pay period – potentially allowing you to put more toward your retirement. 

• IT’S FLEXIBLE. Contributions are invested in the funding options available in your plan. No matter what type of investor you are or where you are in your career, you can choose from a wide variety of funding options to suit your needs. Once you’ve chosen them, remember to monitor your investments in your plan account periodically to make sure that they continue to suit your needs. You can manage your plan account online or via telephone, virtually 24 hours a day.** 

What are the benefits of investing in a 457(b) plan?  

A 457(b) plan offers many benefits: 

• You reduce your current income taxes while investing for retirement. 

• Your earnings accumulate tax-deferred. 

• You can dollar-cost average through convenient payroll deductions. 

• If you are 50 (or older) or within three years prior to the year you reach your normal retirement age, you are allowed to make additional “catch-up” contributions. 

• It’s portable. If you change jobs, you can consolidate your savings in most other public sector employers’ 457(b) plans, qualified 401 plans, tax-sheltered 403(b) annuity plans, or an IRA. 

• If you retire or leave service early, there is no penalty for withdrawals. 

• Supplemental investments are helpful in states and communities where no contribution is made to Social Security.