Frequently Asked Questions
Deferred Compensation
Wisconsin
Deferred Compensation Program Web Site
Online Video: Wisconsin
Deferred Compensation
What is the Wisconsin Deferred Compensation
Program?
The Wisconsin Deferred Compensation Program (WDC) is a supplemental
retirement savings program authorized under Section 457 of the Internal
Revenue Code (IRC). The WDC was created by Wisconsin Laws of 1981
Chapter 187 and established in 1982 for state employees; it has
been available to local employers since 1985.
Who is eligible to participate?
All state and university employees are eligible to participate
in this benefit program. Also eligible are the employees of the
approximately 700 local government and school district employers
that have adopted the WDC.
What are the benefits of this program?
The WDC allows eligible employees an opportunity to save pre-tax
earnings to supplement retirement income. Under Sec. 457, participants
are allowed to defer up to the lesser of 100% of gross income or
$16,500 in 2009.
How is the WDC administered?
The Department of Employee Trust Funds and the Deferred Compensation
Board have statutory authority for program administration and oversight.
The Board contracts for administrative services (marketing, record
keeping, daily program administration) through a competitive bid
process. Great-West Retirement Services is under contract to provide
these services through at least November 30, 2008.
How are my deferrals invested?
Currently, there are twenty-one core investment options available
to participants. These options include two fixed interest options,
three commingled funds, 12 mutual fund, five lifecycle funds and
a self-directed brokerage option. Investment choices range from
conservative to aggressive and include both actively managed and
index funds.
How are the investment options selected?
The Deferred Compensation Board is responsible for selecting and
monitoring the investment options offered by the WDC. The Board
annually reviews the performance of the investment options offered
to determine if they continue to meet established benchmarks. Options
that are determined to be no longer acceptable may be removed from
the WDC and new options may be added.
Can I make changes to my account?
The WDC is as flexible as federal tax law allows. Participants
may change the amount of their deferrals at any time, redirect deferrals
to other investment options offered by the WDC, and exchange existing
account balances from one option to another subject to the excessive
trading policy.
Can I roll dollars in or out of my
account?
Yes, under the Economic Growth and Tax Relief Reconciliation Act
of 2001, you may roll dollars from a traditional individual retirement
account (IRA), a 401(k) or 403(b) plan into the WDC. Likewise, if
you cease working for a WDC-eligible employer, dollars from your
WDC account can be rolled out of the WDC into these programs and
may be rolled out to a Roth IRA account as well. Dollars rolled
out of the WDC will be subject to the tax rules of the new plan.
How can I enroll or make changes to
my account?
Plan representatives are available via the telephone to assist
eligible employees and participants between 7:00 a.m. and 7:00 p.m.
every work day of the year. The WDC administrative office is located
at:
Wisconsin Deferred Compensation Program
5325 Wall Street, Suite 2755
Madison, WI 53718-7982
Telephone: 1-877-457-9327
E-Mail: wdcprogram@gwl.com
TTY: 1-800-766-4952
FAX: (608) 241-6045
An automated voice response telephone system can be accessed by
calling 1-877-457-9327 on a touch tone telephone. This system is
available seven days a week, 24 hours a day, for participants to
obtain personal account information, execute transactions and obtain
past investment performance information on the WDC's options.
A Web site is also available for information about the WDC or to
make changes to accounts at Wisconsin Deferred Compensation
or www.wdc457.org.
How often will I receive a statement
of account?
Distribution of an itemized participant statement, newsletter,
and investment performance report occurs within 20 days of the end
of each quarter.
Is there a cost to participate in
the WDC?
Annual participant fees currently in effect are as follows:
If Participant Balance is Between: |
Fee Per Month / is: |
Fee Per Year / is: |
$0 to $5,000 |
$0.00 |
$0.00 |
$5,001 to $25,000 |
$1.00 |
$12.00 |
$25,001 to $50,000 |
$2.00 |
$24.00 |
$50,001 to $100,000 |
$4.00 |
$48.00 |
$100,001 to $150,000 |
$5.50 |
$66.00 |
Funding for program administration is provided by participant fees
and reimbursements from the investment providers. State funds are
not used for the administration of the WDC.
The Board annually reviews administrative revenues and expenses
and adjusts participant fees as necessary.
When can I receive a benefit from
the WDC?
You can only receive a distribution from your account at termination
from service, retirement, death or unforeseen financial hardship
situations, as defined by the Internal Revenue Code. After you terminate
employment or retire, you may elect a distribution date anytime
up to April 1 of the calendar year following the year you attain
age 70½ or the year you terminate employment, if later.
What type of distribution options
are available?
Distribution options that are available include a lump sum payment
of your full or partial account balance or periodic payments [monthly,
quarterly, semi-annually or annually] directly from your account.
Where can I find more information
on the WDC?
Plan representatives are available via telephone from 7:00 a.m.
to 7:00 p.m. to assist eligible employees and participants every
work day of the year. The administrative office is located
at:
Wisconsin Deferred Compensation Program
5325 Wall Street, Suite 2755
Madison, WI 53718-9327
Telephone: 1-877-457-9327
E-Mail: wdcprogram@gwl.com
TTY: 1-800-766-4952
FAX: (608) 241-6045
An automated voice response telephone system can be accessed by
calling 1-877-457-9327 on a touch tone telephone. This system is
available seven days a week, 24 hours a day, for participants to
obtain personal account information, execute transactions and obtain
past investment performance information on the WDC's options.
A Web site is also available for information about the WDC or to
make changes to accounts at Wisconsin Deferred Compensation
or www.wdc457.org.
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