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Plan Overview

The Mississippi Deferred Compensation Plan & Trust (MDCPT), offered through the Mississippi Public Employees` Retirement System (PERS), is a supplemental retirement savings plan authorized under Section 457 of the Internal Revenue Code and enacted by the Mississippi State Legislature. Participation in the Plan is available to all state employees, elected officials, and employees of participating political subdivisions and independent contractors of the State or its participating political subdivisions. The MDCPT provides you with an opportunity to reduce your current taxes while investing in a variety of investment options to save for your future retirement needs.

Pursuant to Mississippi Code Annotated Section 25-14-1 et seq. (Rev. 1991) the PERS Board has full power and authority to adopt rules and regulations for the administration of the Plan consistent with the provisions of this Plan or I.R.C. Section 457 and any Treasury Regulations.

  • The Board contracted with Systematized Benefits Administrators, Inc. (SBA), to provide administrative, marketing and record keeping services to the MDCPT. SBA is a wholly owned indirect subsidiary of ING Groep, N.V..
  • SBA is staffed with knowledgeable Mississippians to serve you with information about program benefits, investment options, account transactions, or other matters relating to the Plan.
  • The Board has established standards and criteria by which investment products are selected and monitored. Based on the periodic evaluation of the investment options, the Board may remove options from the MDCPT that do not continue to meet the established standards or objectives of the Plan.

    • How does the Deferred Compensation Plan Work?

  • You decide how much of your income you want to invest. Through payroll deduction you may defer as little as $25.00 per month, or up to the maximum deferral allowed under I.R.C. Section 457, which is 100% of includible compensation not to exceed $16,500 annually. Or, if you are within four years of retirement eligibility, you may qualify for the plan’s retirement "catch-up", or 50+ catch-up provision and be able to contribute a larger amount.
  • Several investment options are offered by the Plan. Your contributions are invested in any one or more of the investment options, selected by you the participant.
  • Your contributions and any earnings that accumulate over the years are not taxed until you receive them. Normally this is upon separation from service or retirement (when you may be in a lower tax bracket). At that time you select from a variety of payment options, an option that best suits your retirement needs.
  • The MDCPT will not affect your Social Security Benefits. Your Social Security contribution and benefits will be based on your gross pay before your contributions are deducted.

    • DEFER TODAY....FOR YOUR TOMORROW

    THE BENEFIT THAT CAN LAST A LIFETIME

    Investment options offered through a retirement plan are long-term investments designed for retirement purposes. Money distributed will be taxed as ordinary income in the year the money is received. Account values fluctuate with market conditions, and when surrendered the principal may be worth more or less than its original amount invested.

    Prospectuses that contain additional information are available through your local SBA representative.

     

    Third Party Administration services provided by and securities distributed through Systematized Benefits Administrators, Inc. (SBA).