Deferred Compensation Board

Overview

In 1986, the County established the Nassau County Deferred Compensation Board (the “Board”) to oversee the implementation of the Nassau County Deferred Compensation Plan (the “457(b) Plan”).  The Plan was established pursuant to Section 5 of the New York State Finance Law and Section 457 of the Internal Revenue Code.  The Board is responsible for the administration and operation of the 457(b) Plan.

In 2024, the County established a 401(a) Special Pay Plan (the “401(a) Plan”) to expand the retirement options made available to County employees.  Pursuant to a Resolution approved by the County Legislature, the Board is authorized to oversee the administration and operation of the 401(a) Plan as well as the 457(b) Plan (together, the “Plans”).

Meetings

The Board meets at least quarterly to review the Plans’ structure, administration, fund performance, and costs. The Board is responsible for reviewing the annual audited financial statements of the Plans. In addition, the Board holds special meetings as necessary.

Board Members

The Board consists of nine voting members and two non-voting members.  Five of the members are representatives from each of the five largest bargaining units (unions). The other four members are appointed by the County Executive and approved by the County Legislature.

About the 457(b) Plan

The 457(b) Plan is a voluntary retirement savings plan that is offered to all Nassau County employees, including employees of Nassau Community College.  The Plan is intended to help employees bridge the gap between their pension and Social Security income, and their total retirement income needs.  Participants make contributions to the Plan on a tax-deferred basis through payroll deductions. The Plan currently offers 29 core investment options from which participants can choose, including equity and bond funds, a stable value fund, and a self-directed brokerage option.  The fund lineup is determined by the Board.

457(b) Plan’s Vendors

For More Information About the 457(b) Plan

Should you have any questions, please contact the Empower Service Center at 800-701-8255.

About the 401(a) Plan

In 2024 the County implemented its 401(a) Plan as an additional retirement benefit for all eligible employees. The Plan is administered by BENCOR, Inc.  The trustee of the 401(a) Plan is Charles Schwab Bank.

The County’s 401(a) Plan is a retirement program satisfying the requirements of Section 401(a) of the Federal tax law. The 401(a) Plan enables the County as well employees to save up to 7.65% of Social Security and Medicare taxes on certain forms of termination pay contributed to the 401(a) Plan. As with the 457(b) Plan, income taxes are not imposed until a participant withdraws money from the Plan. Social Security and Medicare tax savings, on the other hand, are permanent, because these taxes are not imposed on withdrawals from the 401(a) Plan.

To be eligible to participate in the 401(a) Plan, an employee must meet the eligibility requirements established by Ordinance (for non-union employees) or their collective bargaining unit. When an employee separates from service, if they meet the applicable eligibility requirements, then they will automatically participate in the Plan (i.e. the 401(a) Plan is mandatory for employees who meet the eligibility requirements at the time of separation from service). 

For employees that meet the eligibility requirements, when they separate from service, the County will make a contribution into an account established in the employee’s name, subject to the annual maximum limit.   Contributions to the 401(a) Plan consist of accumulated termination pay that otherwise would be paid to the employee in cash at the time of separation from service. 

The amount of termination pay that is contributed to the 401(a) Plan on the employee’s behalf is subject to the contribution limit under IRS Code Section 415(c)(1)(A).  For 2024, that limit is the lesser of (i) $69,000 or (ii) 100% of wages compensation as shown on the W-2 statement. Amounts contributed to the 401(a) Plan are not included as earnings on the W-2 statement.

The 401(a) Plan currently offers 11 core investment options from which participants can choose, including a stable value fund.  The fund lineup is determined by the Board.

401(a) Plan’s Vendors

For More Information About the 401(a) Plan

Should you have any questions, please contact the BENCOR Service Center at 866-296-9712.