The National Association of Counties (NACo), in partnership with Nationwide Retirement Solutions (NRS), and state associations of counties, provides county employees with a Section 457 Deferred Compensation Program. Since its inception in 1980, NACo’s Deferred Compensation Program has grown to become the largest supplemental retirement income program available to county employees. More than 380,000 county employees from over 1,900 counties currently participate in the Program, with accumulated assets of more than $6.0 billion.
The NACo Deferred Compensation Program offers county employees a way to augment retirement savings while postponing the payment of federal, and in many cases, state income taxes. The NACo Deferred Compensation Program allows county employees the opportunity to voluntarily contribute a portion of their wages to a special account and to direct these contributions to one or more investment options. Thus, the Program offers county employees a valuable savings alternative that can be used to supplement their retirement income. The Program also provides county governments an additional benefit option to offer to their employees.
- Helps public employees save for their future at no cost to their employer.
- Enables public employees to reduce current taxes.
- Institutes a systematic savings program for public employees.
- Automatic contribution deductions make it easy for employees to save.
- Contributions grow on a tax-deferred basis.
- Employees are 100% vested in their accounts.
- Helps employers to recruit and retain high–caliber personnel.
- Usually less expensive to maintain than defined benefit plans.
- Employer contributions are not subject to Federal Insurance Contributions Act (FICA).
- Flexibility in program design.