Important Notice for Potential Retirees:
Deadlines Affecting Your Ability to Tax-Defer Leave Payouts
The tax code allows participants to defer leave payouts into the Commonwealth’s Deferred Compensation Program (DCP). Both the current annual deferral limit and any applicable catch-up limit may affect the actual amount of the leave payout that you can defer into the DCP.
Current DCP Participants
If you are currently a DCP participant, you must submit a signed Salary Deferral Agreement to the DCP Third Party Administrator, Great-West Retirement Services (Great-West) before the first day of the month in which you will receive your leave payout. But that isn’t the only deadline you need to be aware of; your employer’s payroll processing schedule also needs to be considered. Because payroll processing schedules differ by employer and may take several weeks, please contact Great-West as soon as possible to determine your deadline.
Non-DCP Participants
If you are not a DCP participant, you must first enroll in the DCP, which will require additional processing time. Once enrolled, you must meet the deadlines mentioned above requiring you to submit a signed Salary Deferral Agreement before the first day of the month in which you will receive your leave payout. Both the current annual deferral limit and any applicable “catch-up limit,” as determined by Great-West records, may affect the actual amount of leave payout that can be deferred into the DCP.
Great-West representatives will provide counseling about contribution limits*, forms for new enrollments, and leave payout deductions. Great-West counselors can be reached toll-free at (866) SERS457—ask for the local office.
*Representatives of GWFS Equities, Inc. are not registered investment advisors and cannot offer financial, legal, or tax advice. Please consult with your financial planner, attorney, and/or tax adviser as needed.
