Save even more for your retirement.
The 457(b) Plan is an employer-sponsored deferred compensation retirement plan for members who want to make retirement contributions in addition to a Tax-Deferred Retirement Account - 403(b) Plan and/or Pension Plan. This option is ideal for those seeking an additional vehicle for deferring compensation and decreasing their tax liability.
About the 457(b) Plan
Who is eligible for a 457(b) Plan?
The 457(b) Plan is offered to the following eligible employers affiliated with the Stone-Campbell/Restoration Movement: Colleges, universities, seminaries, benevolent care centers and non-steeples. Check with your employer to see if the 457(b) is available to you.
Why the 457(b) Plan?
- Contributions are normally made pre-tax, reducing taxable income.
- Employer and/or employee may make contributions.
- Accepts rollovers/transfers from qualified plans.
- Separate set of contribution limits not subject to Pension Plan or 403(b) contribution limits.
- No minimum age requirements for penalty-free withdrawals.
- Can be used as an estate planning tool.
- Competitive, guaranteed base rate of 3-6% with no downside market risk.
- Value increases with Good Experience Credits, additional interest earnings awarded when excess reserves exist.
Good for employers who:
- Are already participating in Pension Fund employer-sponsored products.
- Want to offer benefits to a select group of employees.
- Is looking for a retirement product that is not subject to IRS non-discrimination testing.
- Want additional avenues to lower taxable income for employees.
- Like the flexibility of a rollover-friendly, tax-deferred employer-sponsored plan.
Good for employees who:
- Seek additional options for lowering taxable income.
- Are already maxing out contributions to a 403(b) and/or Pension Plan and want to save more for retirement.
- Want to further decrease their tax liability through an additional investment product.
is the current base interest rate for the 457(b) plan
How it Works
The 457(b) Plan provides another pre-tax option for lowering your taxable income—with separate contribution limits from our other employer-sponsored plans.
To participate: An adoption agreement between your employer and Pension Fund is required. Your employer will define eligibility requirements for participation in the 457(b) Plan. You or a representative of your employer can contact your dedicated Area Director to set up the adoption agreement. Click here to view a map and find your Area Director.
In addition to recurring contributions, the 457(b) Plan welcomes rollovers from eligible accounts. Those eligible can request to make a rollover contribution from retirement plans, including:
- 401(a) or 402(a) qualified plan
- 403(b) plan
- 457(b) plan of a governmental entity
- Eligible individual retirement account (IRA) or annuity
This product offers a competitive, guaranteed base interest rate of 3-6%, reducing your downside risk. Each account also qualifies for Good Experience Credits (additional interest earnings) when designated by Pension Fund’s Board of Directors.
These credits allow members to benefit directly from the upside of stronger markets (when underlying investments have performed well + minimum reserve requirements have been met). In combination with the 457(b) Plan’s base interest rate, Good Experience Credits may help you reach your retirement income goals faster.
A 457(b) plan’s annual contributions and other additions (excluding earnings) to a participant’s account cannot exceed the lesser of:
- 100% of the participant's includible compensation, or
- the elective deferral limit ($20,500 in 2022).
- This limit applies to total contributions (employee plus employer).
Good Experience Credits are additional interest earnings. Each year, the Pension Fund Board of Directors reviews reserves required for current and future benefits. When reserves exist above what is required, the Board of Directors may declare Good Experience Credits for all 457(b) Plan participants. Over time, these extra earnings can make a significant difference when saving for retirement.
View more FAQs on our General FAQs page.
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How does the 457(b) compare to other products?
View an overview of how the 457(b) plan competes with similar retirement products.
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