Employees may participate in the Deferred Compensation Plan (DCP) under the Internal Revenue Code 457. DCP is a supplemental retirement plan that provides employees the option to invest income from their monthly paychecks on a tax-deferred basis. Enrollment and changes may be made at any time during the year. The IRS regulates the amount an individual may invest yearly. The Department of Retirement Systems (DRS) administers the plan.
Employees can invest in the DCP in addition to investing in the 403b plan.
There are no District contributions to this plan.
For more information or to enroll, call 888-327-5596, or visit www.drs.wa.gov/dcp.
Why Participate in DCP?
- Costs are Low. DCP offers you investment options with lower fees than most other investment and annuity products. Low investment fees allow you to keep more of your money. A 1% increase in a fund's expenses can significantly reduce your account value over the long term.Assets are NOT subject to the 10% early withdrawal tax penalty. Withdrawal is available without penalty at any age you separate from service, or you may let funds continue to grow tax-deferred.
- Eligible distribution flexibility.You can change your distribution arrangements as many times as you want to meet your retirement needs as long as you begin receiving payments during the year after you reach age 70-½. ANY AMOUNT, ANY TIME.
- Flexible, easy account management. DCP offers you the flexibility to enroll, increase, decrease, change investment options or suspend your deferrals at any time, with no extra fees. The DCP Web site allows you to manage your retirement savings or you may access our Voice Response Unit (VRU) with access to customer service representatives who can answer your plan-specific questions.
- Rollovers. Once enrolled in DCP you may roll over certain distributions from a prior employer-sponsored plan such as a 401k, 403b (tax sheltered annuity), another 457 (DCP) or traditional IRA into your DCP account.
- Washington State Investment Board works for you. All DCP funds are selected by the Washington State Investment Board (WSIB) after a rigorous examination emphasizing value, security and diversification. Trustees of the WSIB have fiduciary responsibility to act only for the benefit of the participants.