Deferred Compensation Plan – 457 (b)
What is a Deferred Compensation Plan?
The Jackson College Deferred Compensation Plan is a supplemental retirement savings program, regulated by Section 457 of the Internal Revenue Code. It is available to all state and JC employees as well as employees of local governments and school districts that have elected to offer this program.
The Deferred Compensation Plan provides eligible employees with the opportunity to invest a portion of their annual earnings on a tax-deferred basis to supplement retirement income. Section 457 sets forth certain limitations and restrictions that must be followed including the amount of the compensation that can be deferred, as well as when and how account balances can be distributed.
How Do I Establish a Deferred Compensation Plan?
- Contact VALIC (below) for information and/or an application.
- Complete the application and return it to VALIC. NOTE: An account must be established with AIG prior to deducting funds from pay.
- Complete a 457(b) Salary Reduction Agreement and return it to Payroll in the Business Office.
Deferred Compensation Plan Provider at Jackson College
Phone: (800) 892.5558 ext 87996 or 248.754.1105
Web Address: http://www.valic.com/