In 1976, the board implemented the State of Nebraska Deferred Compensation Plan (DCP). DCP is a voluntary savings plan, authorized by IRS Code §457, which allows participants to defer and invest a portion of compensation for retirement. DCP is designed to provide employees a supplementary income during retirement.
Individuals who wish to enroll in DCP should complete a DCP Enrollment Form and submit to their HR/Payroll department. HR/Payroll will sign and forward the form to NPERS. This form must be received by NPERS the calendar month prior to the month that participation and contributions begin. For vacation and sick leave payments for terminating employees, this form must be submitted the calendar month prior to the month of termination. Participants should be aware this is a long term retirement savings program and funds may not be withdrawn from the plan until termination, retirement, or approved financial hardship.
- DCP is available for all State, Judges, and State Patrol employees. County employees may participate in the State plan if their county does not offer a Section 457 plan.
- Any individual employed on a permanent or temporary basis, full-time or part-time, may participate in the plan.
- Participants may increase, decrease, or cease then resume contributions.
- Contributions to DCP are made on a pre-tax basis and not reported as income or subject to state or federal income tax.
- State and federal income tax will be applied when distributions are taken from the account.
- Qualifying events for distribution are retirement, termination, or death.
- Provisions allow emergency withdrawals for unforeseen financial hardships with board approval.
- Participants in DCP must make their own investment decisions. There is no guaranteed rate of return. Rates of return vary based on investment choices and market performance. To view the investment funds current rates of return, click historicalReturnsHereHERE or utilize the Online Account Access (see below). Returns are generally available and posted approximately 30 days after the end of each quarter.