State's Deferred Comp Among The Nation's Largest Public Plans

JULY 2004
- ING Continues To Service Members - With over $2.9 billion in assets, the Commonwealth's Deferred
Compensation Program ranks as the sixth largest public deferred
compensation ("457") plan in the country. Established some 29 years
ago, the Mass. 457 program offers to state workers, and local employees
from the 250+ municipalities and subdivisions that participate in the
state program, a voluntary retirement plan in addition to our public
pension (Chapter 32) system.

Under
the Mass. 457 plan, an employee can decide to save a portion of their
salary in their own deferred comp account, up to $13,000 in 2004, and
then invest these savings in the investment options (for example,
mutual funds) offered by the plan. By choosing to do this, in addition
to contributing to their regular pension, an employee "defers" any
income tax on the money deposited in the 457 account and the earnings,
made from the investments, until they withdraw the money. Editor's
Note: Remember federal law requires that you join the 457 plan while
you are still working. You can't sign up once you've retired.

"A
growing number of members took advantage of deferred comp during their
careers," according to Association official Bill Rehrey. "With regular
pension contributions deducted from their paychecks, they saved
additional money in deferred comp in order to secure a better financial
package when they retired."

State
Treasurer Tim Cahill administers the 457 plan, which is known as SMART
(Save Money And Retire Tomorrow). With its contract recently renewed by
the Treasurer (see September 2003 Voice), ING, the multi-national
insurance and financial services giant, continues to work closely with
the Treasury staff on the plan's day-to-day operations and to service
our members, who participate in SMART.

In
addition to its offices in Quincy, Waltham and Worcester, ING
representatives are available at the State Retirement Board in Boston.
Two seasoned client account managers, Nicole Payne and W. Fran Peters,
currently service this location.

"Undoubtedly,
your (Association) members met with us to discuss their accounts and
future plans when they visited the Board to file their retirement
papers," comments Payne. "But it certainly doesn't stop there.
Everyday, both Fran and I spend considerable time on the phone and the
internet, fielding questions from retirees and assisting them with
their accounts."

 TOP TWENTY PUBLIC DEFERRED COMP PLANS



New York State Deferred Compensation Plan $5,663
New York City Deferred Compensation Plan $4,793
Ohio Public Employees’ Deferred Compensation $4,554
California State Savings Plus Program $3,154
County of Los Angeles Deferred Compensation $3,070
Massachusetts Deferred Compensation $2,909
Minnesota State Board of Investment $2,162
State of Illinois Deferred Compensation $1,937
State of Michigan Retirement Systems $1,770
Chicago Deferred Compensation Plan $1,701
City of Los Angeles Deferred Compensation $1,581
Washington State Investment Board $1,520
Florida Dept of Financial Services $1,475
Pennsylvania State Employees’ Retirement $1,122
Maryland Supplemental Retirement Agency $1,064
State of Wisconsin Investment Board $1,034
Hawaii Deferred Compensation Fund $1,004
San Francisco City & County $926
Missouri Deferred Compensation Commission $851
South Carolina Deferred Compensation $779
(Figures Shown In Millions)
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