EMPLOYEE BENEFITS
The Right Career, Right Here

DEFERRED COMPENSATION

457(b) DEFERRED COMPENSATION

The Monterey County 457 Deferred Compensation Plan is a retirement savings program offered by the County of Monterey for County employees through Nationwide and is a means to save towards retirement in addition to the CalPERS pension. This voluntary plan allows participants to save for retirement pre and/or post tax. 457(b) plans are offered to employees of state and local governments, subdivisions of state governments or certain eligible key employees of tax exempt organizations. The Monterey County Deferred Compensation Plan goals and objectives are set forth in the Plan Investment Policy Statement and is used to guide the Monterey County Deferred Compensation Administrative Committee in effectively supervising, monitoring and managing the investments of the Plan.

THE MONTEREY COUNTY DEFERRED COMPENSATION ADMINSTRATIVE COMMITTEE 

The committee meets on a quarterly basis on the third Wednesday of the month. Click HERE to view agendas and exhibits for upcoming and previous meetings.

TO ENROLL

Employees may enroll by going to www.mcdc457.com and clicking the “enroll” button or by completing the Enrollment Form.

WHO IS ELIGIBLE 

All employees, including regular, temporary, intern, per diem, contract, and appointed positions may enroll into the 457 deferred compensation plan. The Plan Features and Highlights is available for more information.

CONTRIBUTIONS

Based on current IRS policy, employees may contribute up to $23,000 per year towards their 457 plan though payroll deductions with an increase cap of $30,500 for employees who are 50 years old and older or $46,000 for those enrolled in the 3-yr. Special Catch Up limit. The minimum contribution is $10 per year period. For more information or contribution and catch-up limits, click HERE.

TRADITIONAL 457 CONTRIBUTIONS

The Monterey County Deferred Compensation Plan accepts pre-tax contributions up to the IRS limits

ROTH 457 CONTRIBUTIONS

The Monterey County Deferred Compensation Plan accepts after-tax contributions up to the IRS limits.

How are Roth Contributions Different from Traditional 457 Contribution?

Roth contributions are made with after-tax dollars. Traditional 457 contributions are made on a before-tax basis and you pay taxes only when you take a distribution.

Do I Pay Taxes When I Take a Distributions from my Traditional 457 Account?

Your distribution is income tax-free if you are eligible for a distribution from your Plan and you withdraw your Roth contributions and my earnings after holding the account for at least five tax years and:

• You are at least age 59 1/2; or
• You become disabled; or
• You pass away (in which case, your beneficiaries will take a withdrawal)

3 YEAR SPECIAL CATCH-UP

Employees who are within 3 years of normal retirement age and who under-contributed in prior eligible years may increase their 457 contribution, ranging up to $45,000, for 3 consecutive years. Employees may only enroll into a 3 year special catch-up one time. For additional information please contact a member of the Monterey County Employee Benefits team.

457 LOAN

A 457 loan allows employees to borrow from their account up to 50% of their balance or $50,000 whichever is less. Any amount borrowed will be paid back through payroll deductions within 5 years, including interest based on the Prime Lending Rate. All interest payments are paid back to the employee account. First time home loans have a 15 year pay back option.

Loan Fees

There are two fees: 1) a one-time $50 loan initiation fee that is deducted from the proceeds of the loan; and 2) a quarterly $12.50 maintenance fee.

How to Apply

• Call 1 (877) 677-3678
• www.mcdc457.com

TRANSFER AND ROLLOVERS

Participants can request to have certain retirement accounts rolled into the Monterey County Deferred Compensation Plan. Use the Incoming Assets Form to transfer funds from other eligible retirement accounts.

401(a) DEFINED CONTRIBUTION PLAN

The Monterey County 401a Defined Contribution Plan is a retirement savings program set up by the County of Monterey through Nationwide. It is a means for your employer to help you save towards retirement in addition to the CalPERS pension. 401 plans can be offered to employees of state and local governments, subdivisions, state governments, or certain eligible key employees of tax-exempt organizations.

WHO IS ELIGIBLE?

Effective January 1, 2022, all new and existing employees in units D, E, G, M, & N are automatically enrolled in this program. Employees not in these units are not eligible to voluntarily enroll as the 401(a) plan is offered through the union negotiation process.

CONTRIBUTIONS

The 401a offered through the County of Monterey is 100% employer contributions. Employees are not able to make additional contributions to this plan. The County contribution amount is determined through employee Union negotiations. Employer contributions are outlined in your Benefit Summary sheets.

• Prosecutors and Public Defenders Association - Units D & E: $300 (Monthly)
• County Counsel Association - Unit G: $500 (Monthly)
• Probation Association - Units M & N: $250 (Monthly)
• Monterey County Deputy Sheriffs' Association- Units A & B: $200 (Monthly)

ADVANTAGES

• The contributions do not count towards your 457(b) plan deferral limits
• Your taxable income does not increase
• Your earnings may grow tax-deferred until they are withdrawn
• You decide which investment options best fit your needs
• Another savings vehicle to help you prepare for retirement

For more information about the 401(a), please review the Plan Guide or contact your Nationwide Retirement Specialist, Justin Bryant at 831-200-5501 or Justin.Bryant@nationwide.com

Upon separation from the County, you can elect to keep your monies in the Plan, you can rollover funds, or you can take funds as a distribution.

Distribution Request Forms

Monterey County Deferred Compensation 457(b) Plan

Monterey County Defined Contribution 401(a) Plan