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