The Deferred Compensation Program (DCP), a 457b plan, is an employee only retirement savings program that helps you save more to achieve the retirement lifestyle you want.
Contributions are made on a pre-tax basis, lowering what you pay in federal income tax now, and will be taxable at withdrawal. Contributions are deducted from your paycheck, can start with as little as $15 or 1% of your salary, and can be changed or stopped at any time. The maximum contribution limits are those allowed by the Internal Revenue Services (IRS)
Contributions made to the plan are invested, with three different investment programs to choose from, including self-directed or managed approaches. Money can be withdrawn from the account once you are no longer working for a state of Washington agency, and all withdrawals made are penalty free. However, income tax is due on any withdrawals. Monies can also remain in the DCP account until you reach required minimum distribution age, and be managed there or rolled into another qualified retirement plan.
If enrolling for the first time:
- If you’re a new employee, please see the automatic enrollment section
- Existing employees who have never contributed to the DCP before can use the Enrollment Form linked in the side bar, and can return the form to Pullman HRS
Current or previous participants can start, stop, or change contributions online at any time.
All new, full-time employees will be automatically enrolled in the DCP if they do not opt out.
Within 30 days or so of hire, WSU will report new hires to DCP. DCP will send notice of the automatic enrollment to your home address, which will include instructions on how to opt out of the automatic enrollment. If you do not wish to be auto-enrolled, follow the instructions on the letter.
If an employee does not opt out, they will begin to see a 3% deduction titled “ST DEF COMP PCT” on your paystub. DCP gives you 90 days from the first contribution to request a refund, but contributions can be stopped at any time. If you do not request a refund within 90 days of the first deduction, your contributions will stay with the plan until you are no longer employed with a state of Washington agency.