New Look For Your Website
Your Commonwealth of Pennsylvania Deferred Compensation Program website is being redesigned with a new look!
This week, you'll be introduced to an easier, smarter and more personalized version of www.sers457.com. Efficient navigation will let you manage your account or access information in an instant. Our new At-A-Glance tile will provide an immediate summary of your account balance and performance. Additional features will include a suite of new calculators to help you make informed investment decisions, and educational material from leading financial experts
Stable Value Fund Rate
The Stable Value Fund rate for the period January 1, 2013 through March 31, 2013, will be 3.098%.
Changing Your Paycheck Contribution Is Easy
You've evaluated your retirement goals and determined that you want to change your payroll deferral percentage or amount. Now what?
You can change your deferral on this website by following these simple instructions:
- Log on to your DCP account.
- Do you want to view your current deferral first? (If not, skip to step 3.)
a. On the left navigation bar, click "Deferral" to view your existing deferral.
b. To continue with changing your deferral, click "Change Account."
- On the left navigation bar under "Change Account," click on "Deferral Update."
- Select "Before tax" or "Roth." If changes are needed for both money types, please check both boxes. Click "Continue."
- Take the following steps:
a. Choose to have your deductions figured either by "Percentage" or "Dollar Amount."
b. Enter the appropriate numbers in the blank field(s).
c. If you elect to contribute to both the before tax and Roth options, click "Calculate Total."
d. Click "Continue." A confirmation page will appear; verify the accuracy of your entry (it might be wise to print this page for your records). Click "Submit."
Deferral changes will be forwarded to your employer for processing. The actual deferral effective date is dependent upon your employer's payroll cutoff date.
Congratulations! You're finished.
Access to the website may be limited or unavailable during periods of peak demand, market volatility, systems upgrades/maintenance or other reasons.
Effective January 1, 2013, BNY Mellon Cash Investment Strategies (CIS), a division of The Dreyfus Corporation (Dreyfus) and current manager of the Deferred Compensation Program's Aggregate Bond Index Fund, will realign its fixed income indexing business with Mellon Capital Management Corporation (MCM).
This reorganization will occur as part of a multi-step internal restructuring of certain subsidiaries of The Bank of New York Mellon Corporation and ultimately means that MCM will be the new manager for the Aggregate Bond Index Fund. This reorganization and transition will take effect at the close of business on December 31, 2012.
MCM will continue to manage your account uninterrupted, with the same commitment to integrity, investment performance and service. Most importantly, we wish to assure you that:
- The manner in which your investment objectives and strategy are currently managed will remain unchanged following the reorganization.
- MCM is currently a trusted investment provider for the Deferred Compensation Program, managing the equity indexing options.
- While share and unit values may change, your overall investment balance will remain exactly the same both pre and post conversion.
GWFS Equities, Inc. is not affiliated with BNY Mellon Cash Investment Strategies or Mellon Capital Management Corporation.
An Increase to 2013 Contribution Limits
In 2013, the maximum amount you may contribute is $17,500 or 100% of your includible compensation (as defined by the Internal Revenue Code), whichever is less. This is an increase of $500 from the 2012 limits.
The additional age 50+ catch-up contribution remains $5,500 in 2013, which means you can contribute up to a maximum of $23,000 if you are age 50 or older during the 2013 calendar year.
The standard 457(b) catch-up contribution amount will also increase in 2013 to $17,500, which means you can contribute up to a maximum of $35,000 if you are within three years of normal retirement age. The additional amount you may be able to contribute under the standard catch-up contribution will depend upon the amount that you were able to contribute in previous years but did not.
You may not contribute to both the standard catch-up option and the age 50+ catch-up option in the same year, even if you are eligible for both options.
To change your contributions, log in to your account and click on "Change Account," then "Deferral Update."
Enhancements to your Program
Two new features:
1. Roth 457
2. Online Deferrals
Click here to find out more!
Tax-Defer Leave Payouts
Important Notice for Potential Retirees:
Deadlines Affecting Your Ability to Tax-Defer Leave Payouts
The tax code allows participants to defer leave payouts into the Commonwealth's Deferred Compensation Program (DCP). Both the current annual deferral limit, and any applicable catch-up limit may affect the actual amount of the leave payout that you can defer into the DCP.
Current DCP Participants
If you are currently a DCP participant, you must submit a signed Salary Deferral Agreement to the DCP Third Party Administrator, Great-West Retirement Services® (Great-West) before the first day of the month in which you will receive your leave payout. But that isn't the only deadline you need to be aware of; your employer's payroll processing schedule also needs to be considered. Because payroll processing schedules differ by employer and may take several weeks, please contact Great-West as soon as possible to determine your deadline.
If you are not a DCP participant, you must first enroll in the DCP, which will require additional processing time. Once enrolled, you must meet the deadlines mentioned above requiring you to submit a signed Salary Deferral Agreement before the first day of the month in which you will receive your leave payout. Both the current annual deferral limit and any applicable "catch-up limit," as determined by Great-West records, may affect the actual amount of leave payout that can be deferred into the DCP.
Great-West representatives will provide counseling about contribution limits*, forms for new enrollments and leave payout deductions. Great-West counselors can be reached toll-free at (866) SERS457, ask for the local office.
* Representatives of GWFS Equities, Inc. are not registered investment advisors, and cannot offer financial, legal or tax advice. Please consult with your financial planner, attorney and/or tax adviser as needed.
Great-WestRetirement Services ® refers to products and services provided by Great-West Life & Annuity Insurance Company and its subsidiaries and affiliates. Great-West Retirement Services ® is a registered service mark of Great-West Life & Annuity Insurance Company. ©2011 Great-West Life & Annuity Insurance Company. All rights reserved.