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Other Programs
457 DEFERRED COMPENSATION PLAN
The 457 Deferred Compensation Plan is designed for long term supplemental retirement
savings, which is governed by the Internal Revenue Code (IRC) 457. This is a voluntary payroll
deduction plan. You may elect to defer a portion of your wages into the plan. Contributions and
earnings remain tax-deferred while in the plan, and are not taxable until distributed.
You may defer from $10 to 100% of your wages per pay period, up to the annual maximum
amount indexed under the IRC. If you are age 50 or over, or within 3 years of retirement, you
may be eligible for an additional catch-up contribution.
2018 basic contribution limit
Up to current IRS annual limit
2018 age 50 catch-up limit
Up to current IRS annual limit
(in addition to the basic contribution limit)
2018 3-year pre-retirement catch-up limit
Up to current IRS annual limit
(in addition to the basic contribution limit)
Who is Eligible
All regular full-time and part-time employees are eligible to participate. Contributions can begin
with the first pay of the month following your date of hire.
When Can You Make Changes to Your Benefits
In accordance with the Internal Revenue Code, contribution changes will be effective no earlier
than the first pay of the calendar month following the date a contribution change form is
received by the Department of Human Resources.
Provider
The City offers three providers:
ICMA Retirement Corporation
Nationwide Retirement Solutions
CalPERS 457 Deferred Compensation Program
You may participate with more than one provider. However, the annual maximum contribution
applies to all contributions made in all 457 plans combined. Also, if you are a new employee,
your 457 contributions through a previous employer(s) plus your contributions through the City
of Sunnyvale, may not exceed the annual maximum contribution combined.
If you have questions regarding the Deferred Compensation Plan, please contact the
Department of Human Resources at (408) 730-7490.