Start Retirement Planning by Learning More About the Florida Deferred Compensation Plan
The Florida Deferred Compensation Plan is a supplemental retirement plan for Government employees in the State of Florida, established under Internal Revenue Code (IRC), Section 457b. The Plan supplements any retirement benefits offered by the Florida Retirement System (FRS) and the Social Security Administration (SSA). Participants may contribute a portion of their income through payroll deduction each pay period.
The Florida Deferred Compensation Plan is an excellent way to increase retirement security. Contributions can be 457b Pre-Tax and/or 457b Roth (post-tax), and Participants benefit from exceptional investment options.
The Florida Deferred Compensation Plan is offered to all State of Florida Government Employees. This includes OPS employees, employees of the State University System, the State Board of Administration, and other Government Employers, including Counties*, Cities*, State Colleges*, Special Districts*, Water Management Districts*, and more*.
*Subject to employer participation.
Key Benefits of the Plan
- Easy to understand fee structure and low fund expense fees
- Excellent investment options, including Fixed Accounts, Target Date Funds, numerous Mutual Funds, and a Self-Directed Brokerage Account
- Penalty-free account modification, such as contribution change, investment reallocation, and Investment Provider addition/replacement
- 457b Pre-Tax and 457b Roth payroll contributions are allowed
- Consolidate other eligible retirement accounts
- Dedicated customer service and professional investment performance oversight from the Bureau of Deferred Compensation and the Plan’s Investment Providers
- Immediate vesting
Payroll Contributions
Payroll contributions made to the Florida Deferred Compensation Plan can be either 457b Pre-Tax or 457b Roth (post-tax). 457b Pre-Tax payroll contributions are tax-deferred, meaning you will pay withholding when you take a distribution. 457b Roth payroll contributions are subject to all applicable wage-withholding requirements at the time they are contributed. Qualified distributions from 457b Roth payroll contributions (and the interest they earn) are tax-free.
457b Pre-Tax
- Payroll contributions that lower taxable income
- Distributions taxed as income
- Penalty-free withdrawals after 31 days of separation from employment
457b Roth
- Post-tax payroll contributions
- Qualified distributions are not included in gross income
- 457b Roth qualified distribution rules apply
Informational Videos
Check out the Informational Videos on the Florida Deferred Compensation Plan website. The Bureau of Deferred Compensation will, periodically, update the website with new videos, designed to inform employees about the Deferred Compensation Plan. Learn how to enroll in the Plan, what types of investments are in the Plan, and more.
457b vs 403b
Certain University employees are eligible for the Florida Deferred Compensation Plan (457b) and the supplementary 403b plan. IRS contribution limits to the 457b and the 403b do not compete. Visit the Universities page for more information.
Not Sure Where to Start?
The Florida Deferred Compensation Plan has three Investment Providers: Corebridge Financial, Nationwide Retirement Solutions, and Voya Financial. Each Investment Provider has a long history of providing top-notch investment opportunities and excellent customer service to Plan Participants. Each of the Investment Providers offers a menu of Mutual Funds, a Fixed Account, and a suite of Target Date Funds.
Looking for the next step? Check out these retirement planning resources provided by the Plan's Investment Providers.
VISIT THE INVESTMENT PROVIDER PAGES
TYPES OF INVESTMENTS
Mutual Funds
Mutual Funds respond to the ebbs and flows of the financial markets and the overall economy. Each Investment Provider has a menu of Mutual Funds to choose from. Each Mutual Fund falls into an asset category, which identifies what types of stocks or bonds are held within that fund. Additional information about the Mutual Funds offered by the Plan can be found in the Quarterly Performance Report or on the Investment Provider websites.
Fixed Accounts
Fixed Accounts are much like savings accounts that gain a predetermined amount of interest, guaranteed through the end of the quarter. Participants can use the Fixed Account to minimize risk and diversify investments. Each Investment Provider offers a Fixed Account, guaranteeing a certain return for the quarter. The assets in Fixed Accounts are backed by the financial strength of the insurance companies offering these products.
Target Date Funds
Target Date Funds provide a diverse mix of investments (stocks, bonds, and cash equivalents) that periodically and automatically adjust over time to grow more conservative as you near your target retirement date. Target Date Funds automatically adjust your investments for you. Early in your career, you are primarily allocated in growth-based investments. Over time, you are primarily allocated in more stable investments as you gradually near retirement.
Ready to Enroll?
Enrolling in the Plan is quick and easy! Click Enroll Now to fill out and submit the online EZ Enrollment Form. Alternatively, enroll by visiting any of the Investment Providers' websites or schedule an appointment with them to enroll in-person.
This website is intended to provide information about the State of Florida's Government Employees Deferred Compensation Plan. It is not intended as investment, legal, or accounting advice. If investment advice or other expert assistance is required, the services of a competent professional should be sought. For changes to your account, go to your Investment Provider's website and log in using the ID and password you created for that Investment Provider.