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State of Connecticut Deferred Compensation 457 Plan

Plan Highlights – Plan Overview

  • Eligibility
  • Administration Fee
  • Withdrawal Charges
  • Contributions
  • Catch-up Contributions
  • Fund Transfers
  • Plan to Plan Transfers
  • Rollovers
  • Loans
  • Distributable Events
  • Required Minimum Distribution
  • Unforeseeable Emergency
  • 10% Federal Penalty Tax
  • Payment Options
  • Annuity Options
  • Account Services
  • Eligibility

    Any individual employee of the State or any individual performing services for the State either by appointment or election, including members of the General Assembly, who performs services for the State for which compensation is paid.


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    Administration Fee

    0.12% annually

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    Withdrawal Charges

    None

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    Contributions

  • Minimum Amount - $20.00 per pay period.
  • Maximum Amount - $16,500 annually for 2009.

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    Catch-up Contributions

  • Age 50+ Catch-up – An additional $5,500 annually for 2009.
  • Special Catch-up – Up to $33,000 (for 2009) in the 3 years prior to the year you reach Normal Retirement Age.*

    Both catch-up provisions cannot be used during the same calendar year.

    Click here
    for more information on the Special Catch-up Contribution Option


    *Special Catch-up is not available to employees eligible to participate in the State of Connecticut 403(b) Plan.


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    Fund Transfers

    Currently, there are no restrictions on transfers among investment options (subject to ING’s policy on market timing and excessive trading).

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    Plan to Plan Transfers

  • The Plan accepts transfers from other 457(b) government plans.
  • Transferred assets can only be withdrawn upon a distributable event.

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    Rollovers

  • The Plan accepts rollovers from 401, 403(b), 457(b) government plans, and traditional IRAs.
  • The Plan does not accept rollovers of after-tax dollars.
  • Rollover assets may be withdrawn without a distributable event. However, non-457 rollover assets may be subject to an Internal Revenue Service (IRS) 10% penalty tax on premature distributions.

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    Loans

    Loans are not available under the Plan.


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    Distributable Events

  • Separation from Service
  • Retirement
  • Death
  • Unforeseeable Emergency
  • A One-time in-service distribution of account values of $5,000 or less is permitted under the Plan, if you have not made contributions to the Plan during the previous two years and you have not received this type of in-service distribution from the Plan in the past.

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    Required Minimum Distribution

    You are required to begin distributions by April 1 following the calendar year in which you attain age 70½ or retire, whichever occurs later.

    The Worker, Retiree, and Employer Recovery Act of 2008 waives the requirement to take a Required Minimum Distribution for the 2009 Calendar Year


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    Unforeseeable Emergency

    An unforeseeable emergency is defined as a severe financial hardship resulting from:

  • Illness or accident of the participant, spouse or dependent; or
  • Loss of the participant’s property due to casualty; or
  • Other similar extraordinary and unforeseeable emergency arising as a result of events beyond the control of the participant.
  • There is a six month suspension on making contributions following an unforeseeable emergency withdrawal.


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    10% Federal Penalty Tax

    The 10% federal penalty tax on distributions prior to age 59 1/2 does not apply to distributions from your 457 Plan assets.

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    Payment Options

  • Partial or Lump-sum Withdrawal
  • Systematic Withdrawal Option – Specified period or specified amount
  • Estate Conservation Option – IRS annual required minimum distribution
  • Rollover to another eligible retirement plan
  • Combination of payout and annuity options

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    Annuity Options

  • Period Certain for 5-50 Years
  • Period Certain for 5-50 Years with Withdrawal Rights
  • Single Life
  • Single Life with 5-50 Years Guaranteed
  • Single Life with 5-50 Years Guaranteed with Withdrawal Rights
  • Single Life with Cash Refund
  • Joint and Full Survivor
  • Joint and Full Survivor with 5-50 Years Guaranteed
  • Joint and Full Survivor with 5-50 Years Guaranteed with Withdrawal Rights
  • Joint and 2/3 or 1/2 Survivor (Payment decreases on death of either)
  • Joint and 1/2 Contingent (Payment decreases on death of primary annuitant)
  • Required minimum distribution regulations may affect issue ages.


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    Account Services

  • Local ING Representatives
  • Quarterly Account Statements
  • Quarterly Newsletter
  • Financial Education Seminars
  • 24-Hour Toll-Free Account Access by Calling 1-800-584-6001
  • Connecticut Defined Contribution Plan Web site at www.CTdcp.com

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    © 2002 - 2009 ING North America Insurance Corporation

    Insurance products issued by ING Life Insurance and Annuity Company (ILIAC). The 403(b)(7) is a series of mutual funds offered through a custodial account with ING National Trust.Seminars and securities offered through ING Financial Advisers, LLC (member SIPC), One Orange Way, Windsor, CT 06095-4774, or other broker-dealers with which ILIAC has selling agreements.