Q:Who is eligible to enroll in the Plan?
A: The Deferred Compensation Plan is offered to all
State of Florida employees (including OPS and
employees of the State University System).
Participation is also open to employees of the State
Board of Administration, the Tri-County Commuter
Rail Authority, the Suwannee River Water Management District, and the Division of Rehab
and Liquidation.
Q:When can I join?
A: You may enroll in the Deferred Compensation
Plan at any time during the year—Not just during
Open Enrollment.
Q:How do I choose my Investment Provider?
A: All Investment Providers offer similar investment
options and excellent customer service. The
Quarterly Performance Report lists and compares
all investment options offered in the Plan. The
Performance Report can be found online at
www.MyFloridaDeferredComp.com, or a hard copy
may be requested by calling 877-299-8002.
Q:Am I able to consolidate outside
retirement accounts into my Deferred
Compensation Plan?
A: Yes. Consolidate or “roll-over” eligible outside pretax
retirement accounts into the Deferred Compensation
Plan such as: 401k, 403b, DROP, FRS Investment Plan, or Traditional IRA assets.
Q:How much can I contribute?
A: The minimum contribution is $20 per monthly pay
period or $10 per bi-weekly. The maximum eligible
contribution amount is set in accordance with
IRS regulations. For participants under age 50, the
maximum annual contribution is 80% of your salary
or $18,000, whichever is less. Participants over 50
may contribute up to 80% of your salary or $24,000.
Some over 50 may be eligible to join the Standard
Catch Up program and contribute up to $36,000
annually. Contact the Deferred Compensation Plan
to see if you qualify.
The Deferred Compensation Plan
is administered by:
Chief Financial Officer
Department of Financial Services
Bureau of Deferred Compensation
200 East Gaines Street
Tallahassee, Florida 32399-0346
Phone: 850-413-3162
Toll-free: 877-299-8002
Fax: 850-488-7186
Office hours: M-F, 8-5 EST
Email: DeferredCompensation@myfloridacfo.com
Website: www.MyFloridaDeferredComp.com
BUREAU OF DEFERRED COMPENSATION
FLORIDA DEPARTMENT OF FINANCIAL SERVICES
Q:Why should I enroll?
A: The Deferred Compensation Plan is an excellent way
to provide additional income for retirement, and
benefit from pre-tax investing.
200 EAST GAINES STREET
TALLAHASSEE, FLORIDA 32399-0323
Taxpayer Funds Were Not Used To Produce or Mail These Materials
Frequently Asked Questions
Enroll today! Visit www.MyFloridaDeferredComp.com,
and click “Enroll Now” to complete the Electronic EZ
Enrollment Form. Click “Submit by Email” to send the
form to Deferred.Compensation@myfloridacfo.com, or
fax it to us at 850-488-7186.
PLAN. SAVE. RETIRE.
WITH DEFERRED
COMPENSATION
Golfing on a weekday, snorkeling during the
morning commute, beachside lounging for hours
upon hours, wining and dining into the sunset, and at
the end of the day, work has not crossed your mind.
Participating in the Deferred Compensation Plan will
help grow your retirement nest egg from savings that
supplement your FRS(Florida Retirement System)
income and Social Security benefits. Your vacation
never ends if you plan and save today.
Planning your future can help you enjoy all the
pleasures of retirement. It’s easy, simply follow
the tips below and you’ll be on your way to a
stress-free retirement.
Enroll Today for an
Exciting Tomorrow
Introduced in 1982, the Deferred Compensation Plan
now services over 80,000 participant accounts with
over 3.5 billion dollars invested! In addition to flexible
contribution limits and tax-saving benefits, the Plan
offers a variety of investment options that help make
meeting retirement goals easy.
Once you’ve considered the many benefits the
Plan has to offer, join the Plan and begin saving
for your future. Enrollment is easier than ever with
our new Electronic EZ Enrollment Form found at
www.MyFloridaDeferredComp.com. Enroll in just
minutes by completing the form and clicking
the “Submit by Email” button or fax a completed
form to 850-488-7186. You may also enroll directly
through one of the five Investment Providers.
Top 5 Reasons to Save With the
Deferred Compensation Plan
1.
Defer taxes until retirement— pretax savings
lowers taxable income.
2.
Bridge the gap with the Deferred Compensation Plan— Don’t count on FRS and Social Security savings to provide 100% of your financial needs
in retirement.
3. Low cost to you. No administrative fees or
commission charges.
4.
5.
No early withdrawal penalties.
Assistance and oversight from the Deferred Compensation Plan and It’s Investment Providers
to help you Plan. Save. Retire.
Reaching Retirement: Get an Early Start
The sooner you start saving, the better. To see how time and
compounding can work to grow a Deferred Compensation
Plan account, consider the following examples:
1
$350,000
$350,000
Linda
Linda
$243,994.20
$243,994.20
2 $25/Month,
$25/Month,
7% Annual
7% Annual
Return
Return
Compounded
Compounded
Monthly
Monthly
JohnJohn
$13,023.17
$13,023.17
300,000
300,000
Contributing
Contributing
for 20for
years
20 years
250,000
250,000
Contributing
Contributing
for 30for
years
30 years
Reduce Federal Taxes Today
Once your automatic payroll contribution begins, so do
the tax savings! When contributing to the Plan on a
pre-tax basis, contributions are deducted from each
paycheck before federal income taxes are withheld —
lowering current taxable income.
The chart below compares the difference between
a taxable account and a Deferred Compensation Plan
account. This example is based on a single employee,
paid monthly, using a 20% tax rate, and investing
$200 a month in both a taxable and a pre-tax Deferred
Compensation Plan account.
0
The Advantage of Pretax Investing
Deferred
TaxableCompensation
AccountAccount
Gross Income
$2,000
Pretax Investment
—
Gross Taxable Income 2,000
Withheld Tax (400)
Social Security and Medicare (153) Subtotal 1,447 After-Tax Investment (200) Spendable Income 1,247 Linda
Linda
$30,499.27
$30,499.27
JohnJohn
$104,185.33
$104,185.33
0 5,00 5,0010,0 10,015,0 15,020,0 20,025,0 25,030,0 30,035,0 35,040,0 40,0$45 $45
0 0 00 00 00 0000 0000 00 00 0000 00 00 00 ,000 ,000
$600/Month,
7% Annual
7% Annual
Return
Return
Compounded
Compounded
Monthly
Monthly
3 $600/Month,
100,000
100,000
JohnJohn
$312,556.00
$312,556.00
Contributing
Contributing
for 20for
years
20 years
50,000
50,000
Linda
Linda
$731,982.60
$731,982.60
Contributing
Contributing
for 30for
years
30 years
Principal
Principal Accrued
Accrued
Interest
Interest
0
0100 100 200 203000 34000 405000 506000 607000 708000 809000 90$01,0 $1,0
,000 ,000,00 ,00,00 ,0,000 ,00,00 ,0,00 0 ,0,000 ,00,00 ,00,00 ,0000,0 00,0
0 00
0 0 0 0 0 00 0 0 0 0 0 00 00
Two investors, John and Linda, each invest through their
employer’s deferred compensation program. Linda starts
saving at age 35. John, who is the same age, does not start
until he is 45. Both save $200 monthly and receive a 7%
annual rate of return. Graph 1, above, shows how much
each of them will have accumulated when they reach age 65.
Graphs two and three show how much Linda and John will
have at age 65 by saving $25 a month (Graph 2) and $600 a
month (Graph 3).*
*The rate of return assumed is hypothetical and for illustrative
purposes only. It does not represent the performance of any of the
investment options in the Plan. Your results will vary.
Now that you’ve read a little about the Deferred
Compensation Plan, it’s time to work toward making
these Retirement dreams come true. Take action.
Enroll today!
∞ Receive additional income during retirement.
∞ Defer paying a portion of federal income taxes.
∞ Put your money to work for you now, so you may
retire happy.
Enroll Now!
To begin saving and investing click the “Enroll Now”
$2,000
(200)
1,800
(360)
(153)
1,287
—
1,287
Accumulated Value Comparison
200,000
200,000
150,000
150,000
Your Ideal Future Awaits…
Deferred
Years of
Taxable Compensation
Accumulation Account Account
5
10 15 20 30 $13,812$14,319
32,074 34,617
56,222
63,392
88,152 104,185
186,198 243,994
The accumulated value comparison assumes a 7% annual rate of return
for both accounts with interest compounded monthly. In this example,
interest earned in the taxable account is taxed at 20% with taxes deducted
monthly. The accumulated value of your account will depend upon your
actual tax rate and actual rate of return. The rate of return assumed is
hypothetical and for illustrative purposes only. It does not represent the
performance of any of the investment options in the Plan.
Changes in tax rates and the tax treatment of investment earnings
may impact comparative results. You should consider your personal
investment horizon and income tax brackets, both current and
anticipated, when making an investment decision as these factors may
further impact the results of the comparison.
button and complete the Electronic EZ Enrollment
Form at www.MyFloridaDeferredComp.com, or fax a
completed form to 850-488-7186. Request enrollment
materials by contacting the Deferred Compensation
Plan at 877-299-8002, or contact one or more of the
Investment Providers listed below. Get started with just
$20 a month. Each Investment Provider offers a wide
variety of investment options at a low cost. The Investment
Provider(s) and the Deferred Compensation Plan are
available to assist you every step along the way.
Please note: The Plan also provides a selection of
investment options that include guaranteed returns and
safety of principle.
Investment Provider
800-949-4457
www.nrsflorida.com
800-282-6295
https://florida457.beready2retire.com/
800-444-9412
www.florida457.com
800-893-0269
rps.troweprice.com/florida
888-467-3726
www.valic.com/floridadc
Self-Directed Brokerage Window
888-393-7272
www.schwab.com
Charles Shcwab enrollment
available through Nationwide.