In 1976, the board implemented the State of Nebraska Deferred Compensation Plan (DCP). DCP, as authorized by IRS Code §457, is a voluntary retirement savings plan which allows state employees the ability to defer and invest a portion of their compensation for retirement. DCP should be considered a long-term retirement savings account designed to supplement the mandatory retirement plan.
Effective 2020, election to participate in DCP will be an option for State employees during open enrollment. In addition, year round DCP enrollment and the ability to change contribution amounts will be available via the Employee Work Center (Workday). Individuals who do not have access to the online process may complete a DCP Enrollment Form and submit to their HR/Payroll department to enroll. HR/Payroll will approve, sign, and forward the form to NPERS.
- Contributions to DCP are made on a pre-tax basis. There is no employer match.
- Distributions may not be taken 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 stop and then resume contributions.
- State and federal income tax will be applied when distributions are taken from the account.
- Participants must make their own investment decisions. Rates of return vary based on investment choices and market performance. Contributions are placed in the default investment option until an investment election has been made. To view the investment funds current rates of return, click historicalReturnsHereHERE or utilize the Online Account Access (see below).
Enrollments (and changes to contribution amounts) will begin as soon as administratively possible, but no earlier than the first of the following month. Elections made during open enrollment will be reflected on the first paycheck in July. Enrollments submitted using the DCP Enrollment Form must be received by NPERS the calendar month prior to the month that participation and contributions are to begin.
Deferrals of unused leave payments (for terminating employees) may only be requested by submitting the DCP Plan Change or DCP Enrollment form to your agency HR/Payroll department. HR/Payroll will approve, sign, and forward the form to NPERS. In all instances, this form must be received by NPERS the calendar month prior to the month of termination.