What is Deferred Compensation?
Deferred Compensation is an optional savings and investment plan for your retirement. Through the State Treasurer's Office, two supplemental retirement savings programs are made available to employee groups.
- 457(b) plan – overseen by the VSERS Board for State employees or legislators; teachers; or municipal employees in a participating municipality.
- 403(b) plan – overseen by the VSTRS Board for employees of Vermont's public school districts and historic academies.
Employees eligible for both the 457 plan and the 403(b) plan may opt to invest in both supplemental retirement savings plans up to the IRS maximum.
Who Administers the Plans?
Vermont’s Deferred Compensation plans have been administered by Empower since August 2022.
Contributing to the Plans
The Plans offer you the opportunity to save with traditional pre-tax and/or Roth after-tax dollars. You also can catch up and contribute more money during the final years of your career.
- In 2024, the maximum annual contribution can be up to $23,000 and may be up to 100% of your annual income.
- Those who will be age 50 and older this year can make an additional contribution of $7,500 for a total limit of $30,500.
- Three years prior to your normal retirement age (whether you will retire then or not), if you have not always maximized your annual contributions to the Plan, you may be able to defer a total amount equal to twice the annual limit ($46,000).
- Rollovers from another employer’s eligible plan or pretax IRA (individual retirement account) are accepted into the Plan at any time.
Retirement Plan Advisors
The Plans offers retirement plan advisors at no additional cost to provide you with personalized service through group meetings and one-on-one consultations. These knowledgeable professionals provide you with convenient service and support. To schedule a personal consultation, Click Here
How Are Funds Invested?
Participants in deferred compensation plans can choose how their funds are invested either independently or through support tools provided by Empower. Empower’s retirement plan advisors can meet with you individually to explain different options. For more information, you can log into your account at empower.com/Vermont.
How to Enroll
All current State of Vermont employees and employees of participating municipalities and school districts are eligible to participate. State employees can enroll through the VTHR website where you submit your timecards (Self Service>Benefits>Deferred compensation Enroll)
Choosing Your Beneficiary
Elect your beneficiary by logging in to your account at empower.com/Vermont or calling 877-RET-VERM (877-738-8376). Even if you have a beneficiary on file with your defined benefit plan, you also need to designate a beneficiary with Empower for your deferred compensation plan.
