Deferred Pension Plans
In accordance with provisions of Section 457 of the Internal Revenue Code, Prince George's County has established a Deferred Compensation Program for its employees in a permanent status to save money for retirement while saving money on taxes every pay day. Employees will pay no state or federal income taxes on the amount deferred or on the earnings in your account during the working years. Taxes are only paid on the amount withdrawn, after retirement or separation from employment.
Minimum Contribution: Employees may join the program at any time during the year. Ten dollars ($10) is the minimum amount that can be deferred per payday. Employees may increase, reduce, or stop their contributions at any time. Contributions can be increased up to six times per calendar year.
Maximum Contribution: For calendar year 2013, employees may defer $17,500 annually. A deferral of $17,500 per year equals $673.07 per pay period. The maximum deferral may exceed these limits if you qualify for the three year "catch up" prior to the normal retirement date or the "age 50 catch up."
The County has contracted with three providers to administer this program to offer a variety of investment options to participants.:
- ICMA Retirement Corporation
- Great West
- The Hartford
Change in allocation to investment funds or providers: A change in allocation to a different investment fund ( how your current contributions are invested) can be made any time, either by telephone, via the internet or by completing a change form. A change from one provider to another may be made by December 10th of each year to become effective on the first payday in January. Transfers of funds from one provider to another may be requested by December 10th each year and will be completed by the following January 31st.
Reports: A quarterly statement is sent to all participants directly from the providers. You can view your personal benefits statement at any time and make asset allocation changes by accessing the provider's website.
Address and Beneficiary changes: These changes may be made at any time by accessing the provider's website and updating the specific information.
Back to Top