Deferred Compensation Plan For Government Employees In Minnesota
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Multi-State
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US-00418BG
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Deferred compensation is an arrangement in which a portion of an employee's income is paid out at a date after which the income is actually earned. A Deferred Compensation Agreement is a contractual agreement in which an employee (or independent contractor) agrees to be paid in a future year for services rendered. Deferred compensation payments generally commence upon termination of employment (e.g., retirement) or death or disability before retirement. These agreements are often geared toward anticipated retirement in order to provide cash payments to the retiree and to defer taxation to a year when the recipient is in a lower bracket. Although the employer's contractual obligation to pay the deferred compensation is typically unsecured, the obligation still constitutes a contractual promise.
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The Minnesota Deferred Compensation Plan (MNDCP) is a voluntary savings plan intended for long-term investing for retirement. If you have questions about the deferred compensation plan, please contact the Minnesota Deferred Compensation Plan at 1-800-657- 5757. 4.Login to your account account1 - Select Go to Savings Plans; then select Beneficiaries under Account Information in the left navigation menu. The Minnesota Deferred Compensation 457b Plan or mndcp is available to all public employees who work for the state. This plan offers a tax-deferred savings plan that can help supplement other retirement benefits. In this section we discuss the features of the MNDCP and how to use your MNDCP savings to supplement your pension and social security income.