Deferred Compensation Plan

457(b) Supplemental Retirement

457(b) Supplemental Retirement

The College of William & Mary offers both a 457(b) Deferred Compensation Plan (DCP) and a 403(b) Tax Sheltered Annuity Plan as supplemental retirement plans.

The 457 Deferred Compensation Plan offers you the opportunity to contribute up to $17,000.00 ($22,500.00 if over age 50) of your annual salary.  The contributions are made on a pre-tax basis.  

Deferred Compensaion 457(b) Automatic Enrollment

Automatic enrollment was implemented on January 1, 2008 to help you save for retirement. If you do not voluntarily enroll in the DCP** or a tax sheltered annuity within the first sixty days of employment, you will be automatically enrolled in DCP.  The deduction will be $20 per pay period.  If a 457 Plan is not right for you, you will have the option of enrolling in a 403(b) Tax Sheltered Annuity with TIAA-CREF or Fidelity.  

Why add a supplemental retirement plan?

Benefits of either a DCP or TSA Supplemental Retirement Plan:

• Your contributions are automatically made through payroll deduction;
• A variety of investment choices are available;
• You don't pay federal or Virginia income tax on the deferrals, earnings on your account, or your plan account savings;
• State employees who contribute the specified amount receive an employer-paid cash match(does not pertain to hourly employees), and
• You choose the amount you want to save, subject to tax code and plan limits.

Can I Participate in Both the 403(b) and 457 Plans?

Yes. As an employee of a College, you now have the opportunity to contribute up to the maximum in BOTH a 403(b) TSA plan and the 457 Deferred Compensation plan at the same time. However, you are only eligible to receive the cash match with one plan (does not pertain to hourly employees). Employees who join both plans will default their cash match plan to the 457 unless they specify otherwise.

The Virginia Cash Match Plan 401(a) (does not pertain to hourly employees)

The Virginia Cash Match Plan is an employer-paid program where the employer will match on a semi-monthly basis up to 50% of the full-time participant's contribution, or $20 per pay period with the employee contributing $40, whichever is less.  If you are interested in participating in either the 457 or 403(b) with a cash match plan, please contact Rita Metcalfe at 221-3158, Amy Byxbe at 221-3155 or Michelle McBeth at 221-3151 for additional information and/or assistance. Note: Cash match is only available to full-time employees.

How Do I Enroll?

The Benefits Office has literature and enrollment forms. The effective date of enrollment and contributions in a tax shelter annuity must be the first day of the pay period, the 10^th or 25^th.

Who is the vendor of the Deferred Compensation Plan? 

VA DCP  | 1-877-327-5261

If you have any questions, please contact Rita Metcalfe at 221-3158 or by email at rfmetc@wm.edu, Amy Byxbe at 221-3155 or by email at arbyxbe@wm.edu, or Michelle McBeth at 221-3151 or by email at mdmcbeth@wm.edu. For detailed information, request IRS Publication 571.