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457(b) New York State
Deferred Compensation Plan
The New York State Deferred Compensation Plan, sometimes referred to as a 457(b) Plan, is a State sponsored voluntary retirement savings plan that is offered to State employees and employees of approximately 880 local government jurisdictions that have adopted the Plan, including the Harrison Central School District. Its mission is to help State and local public employees achieve their retirement savings goals by providing high quality, cost effective investment products, investment educational programs and related services. The Plan is overseen by the New York State Deferred Compensation Board and managed by professional staff. You can access more detailed information by visiting the York State Deferred Compensation Plan website at www.nysdcp.com.
Click here to review Frequently Asked Questions related to the NYS Deferred Compensation Plan.
NYS Deferred Compensation Plan Features
- You may elect to make contributions to a 457(b) NYS Deferred Compensation Plan in addition to and separate from any contributions you may be making to a 403(b) tax-deferred savings account (TSA).
Your contributions are made automatically through the convenience of payroll deductions.
You get a wide variety of investment options covering each major asset class, which gives you the ability to diversify your investments.
You don't pay any current federal or New York State income tax on your contributions. The amount you choose to defer under the Plan is subtracted from your salary or wages before your federal and state income tax withholding is calculated.
You don't pay any current federal or New York State income tax on the interest or investment earnings that build up in your Plan Account.
You don't pay federal or New York State income tax on your Plan savings until you receive the money from your Plan Account, usually during your retirement years, when you may be in a lower tax bracket.
New York State residents who are at least 59 ½ are entitled to a New York State income tax exemption of up to $20,000 on payments you receive from your Plan Account.
You may receive benefit payments only after you permanently leave work from your government employer. (For an explanation of the instances of when a benefit payment is permitted before a separation of service, please refer to FAQ's.) You must begin taking a distribution when you reach age 70 ½, unless you're still working for New York State or a participating employer.
For detailed information about the NYS Deferred Compensation Plan, including enrollment forms, investment information, contribution and withdrawal guidelines, and retirement calculators, visit the NYS Deferred Compensation Plan website: www.nysdcp.com.
You may also e-mail Michelle DeCarlo in the Business Office or call 630-3013 with any other questions.