Deferred compensation is a voluntary defined contribution retirement plan established by the state under IRS Code 457 to help employees provide a supplement to their retirement income. Deferred compensation reduces income taxes while helping retirement savings grow.
The employee decides how much money to defer based on IRS limits. The amount is automatically set aside from the employee's pay warrant and invested for the employee in the investment options chosen by the employee. The employee currently pays no federal or state income taxes on the deferred amounts or on any of its earnings. The employee pays no up-front administrative charges or annual fees, so 100 percent of the employee's contribution is invested in the employee's account.
For information on participating in the ING deferred compensation plan:
ING Plan Office: 1-800-232-0024
KUMC Benefits Office: 913-588-5087