Deferred compensation is a tax-deferred, supplemental retirement savings program that allows public sector employees to contribute a portion of their salary pre-Federal tax to a retirement account. (State income taxes may also be deferred in certain states.) 

> The Purpose of Deferred Compensation
>How Deferred Compensation Can Work for Me
>Deferred Compensation Providers and How to Enroll
>Deferred Compensation Reps On Site
>Tax Advantages
>Questions and Answers
> Link to information about the Supplemental Retirement Program


The Purpose of Deferred Compensation
Deferred compensation plans for public sector employees were established through legislation passed by Congress in 1978, and outlined in Internal Revenue Code Section 457. The government's aim in establishing these tax-favored plans is to encourage workers to establish their own financial security.

How Deferred Compensation Can Work For Me
Using deferred compensation gives you several benefits:

> Provides opportunity to build financial independence for retirement.
> Effective January 1, 2006, the deferral amount is $15,000 per year or 100% of taxable income (less 457 deferrals), whichever is less.   
> There are "catch up" provisions for individuals over age 50 or who are nearing retirement. 
> Contributions to 457 plans are on a pre-tax basis.
> Defers income and investment earnings from current taxes.
> Allows flexible enrollment, participation, and contributions.
> Permits withdrawal of funds for an "unforeseeable emergency." (see Q&A)

Deferred Compensation Providers and How to Enroll
For information on Deferred Compensation or to enroll, you have a choice of two vendors: ICMA/RC or Nationwide Retirement Solutions. Their contact information is provided below. The deferred compensation representative(s) will contact you to answer any questions or establish your account.

Nationwide Retirement Solutions
Contact Person: Ross Plumberg
Group Number: 616001
816-588-8886 or 913-825-0070
E-mail: plumber@nationwide.com
Website: www.nrsforu.com






ICMA
Contact Person: Clint Haynes
Group Number: 301416
Phone: 816-361-5803
E-mail: chaynes@icmarc.org
Website: www.icmarc.org

Deferred Compensation Representatives On-Site

Representatives from ICMA and Nationwide are available to speak with employees onsite at the Administration Building each month. HR/Personnel Payroll Representatives receive a copy of the monthly schedule in advance for distribution to employees. Appointments must be scheduled in advance. Please contact Susan Gray at 913-715-0701 for more information or to schedule an appointment.

Tax Advantages
Your deferred compensation program offers tax advantages that some other types of savings plans do not offer.

The primary benefit of your deferred compensation plan is that you pay no current federal income tax on : 1) the amount you elect to contribute, and 2) on the earnings credited to your account until withdrawal. This is not the case with conventional savings plans (such as “passbook” savings accounts) where your contributions, and most likely the earnings, are subject to current taxation. The following illustrations show the impact of this tax savings: