Deferred Compensation Plan

Plan Overview

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.

  • 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 HERE or utilize the Online Account Access (see the last paragraph on this page for further details).

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.

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.

Please Note:

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 prior to funds being received in our office.

Recommended Reading for Members

Educational Videos for Members

Deferred Compensation Plan Video

This video is designed to give a brief explanation of the Deferred Compensation plan.

Investment Assistance Video

To help DCP members make informed investment decisions, NPERS offers multiple publications and an Investment Education video. This video covers the investment options and provides an outline on the basics of investing.

Deferred Compensation Plan & Workday

This video details how to use Workday (EDC) access to enroll or make changes to your Deferred Compensation Plan account. Workday Access is currently only available for State of Nebraska employees or employees of the State Patrol plan NOT covered by the SLEBC contract. Members of the County plan or SLEBC covered employees of the State Patrol plan must use paper forms for enrollment and changes to their DCP. Also of note, if you intend to rollover eligible unused sick or vacation leave this must be done on a paper form, given to your HR, and arrive in our office the calendar month prior to your termination date. No exceptions.

Online Account Access

NPERS recommends using the Ameritas Online Access to choose investments. If you have already created an Ameritas Online account for your mandatory retirement, your DCP account will be added to your existing login credentials once Ameritas receives enrollment data from NPERS. If you have not created an online account, Ameritas will mail you correspondence containing the information you will need to create an online account.