06:33:00 Deferred Compensation

Deferred Compensation Program

06:33:00 Deferred Compensation Program

1. The Deferred Compensation Program (DCP)

1. The Deferred Compensation Program (DCP)is offered by the state of Tennessee, and consistent with sections 403(b), 401(k), and 457 of the Internal Revenue Code and related provisions of the IRS and guidelines established by the Tennessee Board of Regents. It offers employees the option of accumulating additional savings beyond the retirement income afforded through the Tennessee Consolidated Retirement System or Optional Retirement Program. With this program, the employee sets aside designated amounts of money (beginning with as little as $20 per month) through payroll deduction before federal income taxes are applied. This allows employees to postpone (“defer”) receiving part of their salary until retirement, thereby postponing federal income taxes on the deferred amount and its earnings until the money is paid to the employee or his/her beneficiary. Responsibility for vendor selection and subsequent investment performance shall be that of the employee and the vendor.
2. How to enroll: Employees electing to participate in a deferred compensation program may contact Human Resources for details.

Additional information on deferred compensation is described in TBR Guideline No. P- 045.

Approved: Executive Staff, 05/20/09
Approved: President’s Cabinet, 05/20/09
Approved: President, 05/20/09
Reviewed and Revised: Human Resources, November, 2000