New York City's Deferred Compensation Program is to start to gather information on fixed income managers.
According to Georgette Gestely, program director of the DCP, a mandate could be put out to tender once the fixed income manager research is completed.
The City of New York Deferred Compensation Program is a tax deferred savings plan governed by Section 457 of the Internal Revenue Code. The purpose of the program is to encourage employees to make and continue careers with the city of New York, and to provide eligible employees with a convenient way to save on a regular and long-term basis, thereby providing for their retirement.
For employees who are members of a NYC pension plan, the DCP is a supplemental savings plan to their pension and Social Security. For non-pension member employees, DCP, if elected, is their sole retirement plan To non-pension member employees who are contributing less than 7.5% to the program, DCP is a supplement to Social Security.
DCP allows employees to set aside a portion of their compensation before the deduction of federal, state, and local income taxes through automatic payroll deductions. Both pre-tax contributions and their respective earnings will remain tax deferred until withdrawn through plan benefit payments, at which time they will be taxed as ordinary income.
By Geoffrey Ho
The registration deadline for the Workplace Savings & Benefits Awards 2019 is today.
This week's top stories were the DWP giving the green light to CDC and TPR granting extensions for 11 master trust authorisation applications.
Susan Martin says building strong foundations for business are the only way forward as the pensions industry is radically shaken up
The Pensions Regulator (TPR) has granted Now Pensions a six-week extension for its master trust authorisation application after the 31 March deadline, PP can reveal.