The City of Madison offers optional Deferred Compensation 457(b) plans. The City does not make matching contributions towards the 457(b) plans. Because there is no enrollment period, employees may enroll in the 457(b) plans at any time during employment with the City. The standard minimum contribution is $25.
Wisconsin State pension generally replaces only a portion of your wages, so many employees use Deferred Compensation plans to fill in the income gap. 457 plans are primarily set up for public employees, to replace private sector 401K plans.
Any contributions are deducted from your payroll before taxes are calculated.
Employees have the opportunity to participate in two 457(b) plans. One plan is administered by ICMA-RC and the other by the Alliance Benefit Group (previously Lincoln Financial Advisors). Both plans offer a variety of investment options for employees. To begin contributing to a 457(b) plan, visit the ICMA-RC and Alliance Group pages to view upcoming appointments.
Alliance Group & ICMA Maximums
Both the Alliance Group and ICMA have a maximum yearly contribution.
|Age||$ per year||$ per paycheck|
|if you are age 49 or under||$18,000||$692.31|
|if you turn age 50 or over in 2016||$24,000||$923.08|
|if you are using the Catch-Up Provision||$36,000||$1,384.62|
A provision in your deferred compensation plan allows withdrawals in the event of an unforeseeable emergency. This withdrawal is only permitted if a genuine emergency exists which can only be met by such a withdrawal. Learn more about Deferred Compensation Emergency Withdrawals.
For more information, please see the Employee Benefits Handbook.