Deferred Compensation Plan

457(b) Supplemental Retirement

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 $18,000.00 ($24,000.00 if over age 50) of your annual salary.  The contributions are made on a pre-tax basis.  

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 William & Mary, 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. Full-time employees who contribute at least $20 per pay period to the 403(b) Tax Deferred Savings Plan or to the 457 Deferred Compensation Plan are eligible for an employer cash match.*  The cash match program offers a 50% employer match on one plan only, with a cap of $20.00 per pay period.

* Note: Employees who are enrolled in the Virginia Retirement System Hybrid retirement plan must be contributing a total of 9% to the Hybrid plan in order to be eligible for the cash match program.

If you are interested in participating in either the 457 or 403(b) with a cash match plan, please contact  the main Human Resources Office number at 757-221-3169 for additional information and/or assistance. 

How Do I Enroll?

403(b) Tax Sheltered Annuity - The Benefits Office has literature and enrollment forms for the 403(b) plans.  The effective date of enrollment and contributions in a tax shelter annuity must be the first day of the pay period, the 10th or 25th.

457 Deferred Compensation Plan - To enroll, please contact ICMA-RC at 877-327-5261 to enroll and/or make changes to your contribution amount or fund lineup.

Who is the vendor of the Deferred Compensation Plan? 

VA DCP  | 1-877-327-5261

To review the current investment option performance, please visit http://www.icmarc.org/x3333.xml?RFID=C2809.

If you have any questions, please contact the main Human Resources Office number at 757-221-3169. For detailed information, request IRS Publication 571.

 History of Maximum Limitations on
403(b) or 457 contributions :

403 B Limits

457 Limits

Over 50

1994

$9500

$7500

1995

$9500

$7500

1996

$9500

$7500

1997

$9500

$7500

1998

$10000

$8000

1999

$10000

$8000

2000

$10500

$8000

2001 (effective in 2001 you could have both a 403(b) and 457)

$10500

$8500

2002

$11000

$11000

$12000

2003

$12000

$12000

$14000

2004

$13000

$13000

$16000

2005

$14000

$14000

$18000

2006

$15000

$15000

$20000

2007

$15500

$15500

$20500

2008

$15500

$15500

$20500

2009

$16500

$16500

$22000

2010

$16500

$16500

$22000

2011

$16500

$16500

$22000

2012

$17000

$17000

$22500

2013

$17500

$17500

$23000

2014

$17500

$17500

$23000

2015

$18000

$18000

$24000

2016

$18000

$18000

$24000

2017 $18000 $18000 $24000