457(b) Deferred Compensation Plan

A 457(b) Deferred Compensation Plan is a supplemental retirement plan that allows employees to contribute a portion of their pretax salary, within certain Internal Revenue Service (IRS) limits, to a personal account currently maintained by Voya Financial Services to save for retirement. Employees may select from multiple mutual funds and a fixed interest account when investing their funds. The County, as Plan Administrator, regularly monitors the investment options and deletes or replaces funds that fail to perform according to the guidelines set forth in the County of San Bernardino Investment Policy and Procedures Statement. For detailed information, refer to the 457(b) Deferred Compensation Plan document.

You may also make deferrals on an after-tax basis with the Roth 457 Plan Option.

Website: cosb.beready2retire.com

Voya Customer Service: 909.748.6468 or 1.800.452.5842



How the Plan Works

This is a supplement to the County's Retirement Plan (SBCERA) that allows you to defer a certain portion of your salary. Essentially, you put aside an amount from each pay and invest it until withdrawal. Only at that time will your savings be taxed.


Eligibility

All General employees in regular positions, and other employees that are granted this benefit through an employment contract or Exempt Compensation Plan, are eligible to participate. Participating employees may be eligible to receive a County contribution subject to the maximum amounts specified in your Memorandum of Understanding (MOU), Exempt Compensation Plan, salary ordinance or contract.


Enrollment

If you are interested in joining, contact the local office of Voya Financial Services at 1.909.748.6468 or 1.800.452.5842 to schedule an appointment. For full contact information, visit Voya's Contact page. A representative will be happy to meet with you at your work site to advise and enroll you in the plan. You can also view the relevant EMACS Salary Savings forms webpage.

457(b) Deferred Compensation Plan Enrollment Form
457(b) Deferred Compensation Information Change Form


Contributions

You decide what percentage of your salary you wish to contribute, within certain Internal Revenue Service (IRS) limits. The County will reduce your paycheck before taxes each pay period by the requested amount and will forward it directly to an investment service provider (currently Voya Financial Services) who will place it in an account on your behalf.


Investments

You decide how to invest the money in your account. The plan offers various investment options. You are solely responsible for choosing the investment options for your account. Refer to the Investment Terms section and the Comparison of Investment Options to assist you in making choices that are right for you.

The County, as Plan Administrator, monitors the investment options and will delete or remove funds that fail to perform according to the guidelines set forth in the County of San Bernardino Investment Policy and Procedures Statement. As such, the investment options offered under the plan are subject to change from time to time. Any money invested in an investment option that is removed or replaced will be mapped to another fund offered by the plan. You always have the ability to change the way an investment is mapped by directing your balance to another option offered under the plan.


Taxes and Withdrawals

Since you are postponing receiving a portion of your income, you are also postponing the income taxes that will be due on that amount. Contributions and any earnings that accumulate over the years are not taxed until you receive them. This is generally at retirement when participants are usually in a lower tax bracket.

Unlike 401(k) plans and other “qualified” plans, there is no penalty for withdrawals made from a 457 Plan before age 59 ½. So, if you have a complete break in service from the County, you may choose to withdraw a portion or all of your 457 account balance. You will only have to pay the Federal and State taxes due on the amount withdrawn.


Loan Provisions

As a result of recent changes in applicable pension law, active participants in the 457 Plan are now eligible to take a loan against their account balance. Loans (and hardship withdrawals) are subject to several restrictions and the participant should make themselves thoroughly familiar with the loan provisions in the 457(b) Plan document before requesting a loan.

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