457 Deferred Compensation Plan
The Deferred Compensation Plan is a Section 457 Retirement Program, commonly referred
to a supplemental retirement annuity. This plan provides employees with the opportunity
to invest money on a before tax basis, using payroll deduction. Because your taxable
income is reduced, you can invest money and defer taxes. The before tax aspect is
what makes Deferred Compensation Plans very attractive. Participants defer federal
and state income tax on their contributions. In addition, interest or earnings on
your account accumulates tax-deferred. No taxes are paid on the account until you
begin withdrawing funds. You may join the plan with as little at $10 per pay period.
You can contribute the lesser of $18,000 or 100% of compensation per calendar year.
Great West Life and Annuity Insurance Company is the plan administrator for Louisiana
Public Employees Deferred Compensation Plan.
For more information about Louisiana Public Employees Deferred Compensation Plan, please contact C. David Arriaza (225) 663-5502.
EGTRRA (Economic Growth and Tax Relief Reconciliation Act) of 2002 allows for the following contribution limits on tax-deferred annuities for 2017: $18,000.00 per year, plus an additional $6000.00 for participants if they will be over age 50 by the end of the calendar year of those older than 50. An additional catch-up provision may also be available for employees with 15 years of service at the university.
Call (985)549-2057 for more information.