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Save Even More for Your Retirement

The 457(b) Plan is a deferred compensation retirement plan for members who want to make additional retirement plan contributions in addition to a Tax-Deferred Retirement Account-403(b) plan and/or Pension Plan. It is ideal for those seeking an additional vehicle for deferring compensation and decreasing their tax liability. The 457(b) Plan offers a competitive base rate of return, accepts transfers from qualifying plans, and is eligible for additional interest in the form of Good Experience Credits.

 

Interested in the 457(b) Plan?

The 457(b) Plan is offered to the following eligible employers: college, universities, seminaries, benevolent care centers, and non-steeples. Check with your employer to see if the 457(b) Plan is available at you.

Enjoy competitive, guaranteed base returns.

This product offers a 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.

Key Benefits

  • Contributions are normally made pre-tax through your employer payroll, reducing taxable income
  • Employer and/or employee may make contributions
  • Employees can defer the lesser of IRS contribution limits, or up to 100% of their includible compensation
  • Has a separate set of contribution limits not subject to Pension Plan or TDRA contribution limits
  • Not subject to IRS non-discrimination testing for employers
  • No minimum age requirement for penalty-free withdrawals
  • Accepts transfers from qualified plans
  • Is an estate planning tool - choose your beneficiary
  • Offers a guaranteed base rate and is eligible for additional earnings through Good Experience Credits.

How do I get started?

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.

457(b) Plan FAQs

What are Good Experience Credits?

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.

What are contribution limits for the 457(b)?

A 457(b) plan’s annual contributions and other additions (excluding earnings) to a participant’s account cannot exceed the lesser of:

  1. 100% of the participant's includible compensation, or
  2. the elective deferral limit ($19,500 in 2020).

This limit applies to total contributions (employee plus employer).