As a regular County employee, you can elect to set aside part of your income each year into a personal tax-advantaged savings account. “457 Plans” for public employees are similar to the more familiar “401(k) Plans” offered by private employers.
You can put funds into your account by authorizing a payroll deduction, which will come out of your pay pre-tax. When you leave employment with the County, whether for retirement or for any other reason, you take your account with you.
The County offers you a choice between two administrators for your account. You can invest with:
Both of these administrators offer a wide selection of options for you to choose how your funds are invested. Generally, you can invest a set amount per year through this plan. Certain Management employees can also qualify for County contributions into their accounts.
For assistance, contact the deferred compensation representative directly.
The Auditor-Controller’s Payroll office provides forms to authorize and change payroll deductions for this Plan. Both deferred compensation administrators have great materials available to help you understand the program and the investment options available to you. You’ll find these advisors ready to help you with your overall financial planning for retirement. They’ll provide recommendations tailor-made to help you meet your own financial goals.
The CalPERS pension plan the County provides is a great foundation. Other programs can also help, including the Retiree Health Defined Contribution program, Social Security, and Medicare. But you must carefully consider whether these programs will be enough by themselves.
For most employees, the 457 Plan through the County is the best way to save for retirement. Automatic payroll deductions make investing easy and the money in your account, including any earnings, accumulates tax deferred. Your future financial security is in your own hands – take advantage of this great program!