As a public sector employee, you may participate in a Section 457 deferred compensation plan that allows you to save toward retirement by deferring pre-tax dollars through payroll deduction. When you contribute to the Deferred Compensation program with pre-tax dollars, you reduce your taxable income, while contributing to your retirement savings.
For 2014, the normal contribution is $17,500 or 100% of your salary, whichever is less. The “Pre-Retirement” Catch-Up limit is $35,000. The “Age 50” Catch-Up Limit is $23,000. There is no minimum biweekly contribution.
All Full-time or permanent part-time employees are eligible to participate in deferred compensation. Eligible employees can enroll, change or stop deductions at any time. Enrollment and deduction changes will take effect in the month following receipt of your form. Henrico County offers two vendors for the deferred compensation program: Voya and ICMA-RC. Both vendors provide a wide range of investment options to meet the needs of employees saving for retirement. Saving for retirement is important and any amount contributed can be beneficial toward overall retirement savings.
ING has changed its name to Voya Financial effective September 1, 2014. This is a name change only. See voya.com for more information.
For additional details, check out Henrico County’s Deferred Compensation brochure.
Vendor Web sites
Voya Financial Services
Richmond, VA 23229
Voya Customer Service
ICMA-RC Customer Service
Henrico Department of Human Resources
What is the minimum amount I can contribute biweekly?
There is no minimum biweekly contribution.
What is the maximum amount I can contribute per year?
One hundred percent (100%) of your annual salary or the current year annual max, whichever is less. The 2014 contribution limit is $17,500.
When will contributions/changes start being deducted from my pay?
No earlier than the following month after the form is signed.
Can I request deductions to stop coming out of my pay at any time?
Yes, deductions can by stopped at any time as long as you complete a change form and return it to the Department of Human Resources.
When can I withdraw my contributions?
Monies in your account can only be withdrawn when you leave employment with the County.
Can I withdraw money from my account for emergency situations?
You may submit a request directly to Voya or ICMA-RC for an unforeseeable emergency withdrawal if your situation meets the strict guidelines set for 457 deferred compensation plans. For questions regarding emergency withdrawals, please contact the vendors directly: Voya 800-262-3862 and ICMA 800-669-7400.
How can I change where I have my money invested?
Both ICMA-RC and Voya have made it easy to make changes to your investments. You may make fund changes or transfer funds via their web sites (Voya at voya.com or ICMA-RC at www.icmarc.org.
What is the “Pre-Retirement Catch-Up” provision?
The “Pre-Retirement Catch-Up” provision allows you to make additional contributions in excess of the annual maximum in the 3 years prior to your eligibility for unreduced retirement benefits. Contact the Department of Human Resources for specific information about “Pre-Retirement Catch-Up.” The “Pre-Retirement Catch-Up” limit for 2014 is $35,000.
What is the “Age 50 Catch-Up” provision?
The “Age 50 Catch-up” provision allows you to make an additional contribution up to a specified dollar limit. To qualify, you must turn 50 by the end of the year in which you wish to participate. The dollar limit for 2014 is $23,000.