Retirement Savings

City of Chicago Deferred Compensation Plan - Nationwide

The City of Chicago offers a Section 457 deferred compensation plan. As an employee of the City of Chicago, you are eligible to enroll and contribute to the 457(b) plan. This plan provides you an opportunity to invest a portion of your salary on both a pre-tax and/or Roth (after-tax) basis to save for retirement. Employees who enroll in the plan make voluntary contributions each pay period and invest in an array of investment options to help prepare for their income needs in retirement. This account is a voluntary contribution that can help to bridge the gap between your defined benefit plan (pension) and how much you will need while in retirement. Some Collective Bargaining Agreements (CBAs) provide for employee matching contributions into a 401(a) match plan. See your applicable CBA for details.

City of Chicago Deferred Compensation Plan

IRS deferral limit

Regular Limit: $23,000
Age 50+ Catch-up: $30,500
Special 457 Catch-up: $46,000

Plan Document

City of Chicago Deferred Compensation Plan Document Revised September 5, 2014

Enrolling into the Deferred Compensation Plan

Start saving or increase your contribution today at ChicagoDeferredComp.com.

Schedule an in person or virtual appointment with a Retirement Specialist.

Key reasons to consider your Chicago Deferred Compensation Plan:
Tax Flexibility — Tax-deferred and Roth after-tax contributions	Low Cost — Through group buying, we negotiate lower fund fees than individuals may be able to get on their own
Easy — Payroll deduction means your contributions are automatic	Portability — If you leave your job, you may be able to roll your assets into another eligible retirement plan or IRA
Flexible — Change your investment mix or contribution amount at any time	Automatic — Earnings are reinvested, harnessing the power of compounding
Access — You can withdraw 457(b) assets when you leave service or retire, regardless of your age

Monthly Webinars

Enrollment

Join us for a session on the benefits of enrolling and participating in the City of Chicago Deferred Compensation Plan. Learn about tax deferred savings, investment options available and an overview of our easy and secure online enrollment process. All are welcome to participate.

Every First Wednesday of the month | 1:00 PM & 5:00 PM CST | Register now

Roth

Join us for a session about the Roth contribution option now available in the City of Chicago Deferred Compensation Plan. Learn more about the potential benefits of after-tax contributions and whether they are a good fit in your retirement account. All are welcome to participate.

Every Second Wednesday of the month | 1:00 PM & 5:00 PM CST | Register now

Approaching Retirement

Join us for a session about important considerations as you get closer to retirement. We will discuss longevity, income sources, asset consolidation, and required minimum distributions. All are welcome to participant.

Every Third Wednesday of the month | 1:00 PM & 5:00 PM CST | Register now

Retirement Myths and Realities

Join us for a session about Retirement Myths and Realities. Separating fact from fiction to help you plan for your retirement. In this session we will share some of the biggest myths concerning retirement as well as the truth to help you confidently plan for retirement. Come take part in this virtual discussion to make sure you are aware of all the tools and resources available to prepare you for your retirement. All are welcome to participate.

Every Fourth Wednesday of the month | 1:00 PM & 5:00 PM CST | Register now

Plan Information

City of Chicago Deferred Compensation Plan Retirement & Separation from Employment Checklist

Your account can remain open!

Investment funding options and account management services continue to be available
Contributions stop with your last paycheck

Explore opportunities to add payments to your account

Consider deferring eligible time-due accumulated pay (i.e., “Buyout”); participants may defer vacation, furlough, and comp time upon retirement (eligibility may vary)
– Election must be signed on a Nationwide Buyout Form prior to your retirement date and is subject to applicable annual contribution limits

Consider incoming rollover opportunities to consolidate retirement assets

Your plan accepts eligible rollover distributions from other eligible retirement plans — regardless of employment status
Eligible plans include 401(a) pension, spousal and widowers’ refunds, 401(k), 403(b), 457(b) and traditional IRA accounts
Rollovers are not subject to annual contribution limits

– Complete the Nationwide Incoming Rollover Form and contact the carrier institution to request a direct rollover to Nationwide

Review your asset allocation with a Nationwide Retirement Specialist Confirm and/or update beneficiaries.

Understand distribution options and procedures

Withdrawals are permitted at any age upon separation of employment; the employer must update employment records and report to Nationwide before the first distribution can be processed

– Time frames may vary; after the retirement/ termination date, please allow approximately 30 days for the employer to provide Nationwide with an employment status update

In-service withdrawals are permitted upon reaching age 591/2
Payout options are flexible; partial lump-sum and systematic withdrawals are permitted.

– Distributions are taxable; withdrawn amounts are considered ordinary taxable income

– 457(b) assets are not subject to an early withdrawal penalty

– Direct deposit is available

– Distribution requests may be initiated online or by completing a form

Required minimum distributions (RMDs)

– Currently, distributions must begin no later than April 1 following the calendar year when you reach age 73 or sever employment, whichever is later; the RMD age is set to increase to 75 by year 2033.

Three reasons to contact Nationwide® when you’re planning to retire:

1. Understand your withdrawal options

The City of Chicago Deferred Compensation plan provides multiple distribution options to provide flexibility when determining how and when you receive funds from your account after severing employment.

2. Learn how to roll over pension refunds and/or contribute accumulated time buyouts

Leverage the plan to maximize your income tax deferrals. You may be eligible to convert unused vacation, comp time and/or furlough days into a deferred compensation plan contribution. Also, if you are eligible to receive a refund from your pension fund — such as a spousal or widower’s payment — you may elect to roll over the proceeds into your account.

3. Your account keeps working for you

Talk with a local Nationwide Retirement Specialist about how and why you should consider letting your account’s investments potentially grow through your retirement. The City of Chicago Deferred Compensation Plan is with you for life.