Get DEFERRED COMPENSATION PLAN ENROLLMENT FORM - Nyc

The New York City Deferred Compensation Plan (DCP) allows eligible New York City employees a way to save for retirement through convenient payroll deductions. DCP is comprised of two programs: a 457 Plan and a 401(k) Plan, both of which offer pre-tax and Roth (after-tax) options.

The Plan is overseen by the New York State Deferred Compensation Board (the “Board”) and managed by professional staff. The New York State Deferred Compensation Plan is a State-sponsored employee benefit for State employees and employees of participating employers.

The purpose of this bulletin is to notify agencies of the following maximum contribution limits for employees enrolled in the New York State Deferred Compensation Plan for calendar year 2023: The regular yearly contributions amount for Deferred Compensation will increase from $20,500.00 to $22,500.00.

The Plan is a voluntary retirement savings plan offered by New York State and your employer, to allow public employees like you to put aside money from each paycheck toward retirement. The Plan can help bridge the gap between what you have in your pension and Social Security, and how much you'll need in retirement.

In the 457 Plan, you may choose to make pre-tax contributions and/or Roth (after-tax) contributions. However, the combined deferral cannot exceed $22,500. In the 401(k) Plan, you may choose to make pre-tax contributions and/ or Roth (after-tax) contributions. However, the combined deferral cannot exceed $22,500.

A deferred comp plan is most beneficial when you can reduce both your present and future tax rates by deferring your income. Unfortunately, it's challenging to project future tax rates. This takes analysis, projections, and assumptions.

Offering employees access to an executive deferred compensation plan is a valuable employee benefit. Having such a plan can draw in well-qualified executives. It can also keep executives from leaving to go to work for a competitor because they would lose their ability to make future contributions.

As always, you can speak with a Deferred Compensation Plan Customer Service Representative about the Plan and your account(s) on the phone by calling at (212) 306-7760.