AboutAbout New York State Deferred Compensation Plan


The New York State Deferred Compensation Plan is a 457(b) retirement plan created for New York State employees, and employees of participating agencies.

Retirement may last for a long time. Your pension and Social Security benefits may be your primary retirement income source, but that might not be enough. Many retirees may face an income gap in retirement. In addition, inflation could erode the value of these benefits. Preparing for retirement through the Plan may help overcome any retirement income gap and potentially provide additional financial security for unexpected expenses.

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What is NYSDCP?

The Plan is a voluntary retirement savings plan offered by New York State and your employer, to allow public employees like you to put aside money from each paycheck toward retirement. The Plan can help bridge the gap between what you have in your pension and Social Security, and how much you’ll need in retirement. The Plan offers both traditional pre-tax and Roth 457(b) accounts to provide you with retirement savings choices.

Here are some frequently asked questions about the Plan:

  • What sets this Plan apart from other retirement plans?The Plan is a supplemental retirement savings plan. New York State retirement plans will generally provide your primary retirement income. The Plan differs from other defined contribution retirement plans (like a 401(k) or 403(b)), because it is designed and managed with public employees in mind. The New York State Deferred Compensation Board establishes and administers the Plan policies.
  • What does tax-deferred mean? Basically, you don’t pay income taxes on your Plan account contributions or earnings until you begin to take payments from your account. This may lower your taxable income now and in retirement.
  • Can I combine retirement accounts?Your Account Executive will work with you to combine, or consolidate your eligible retirement accounts into your Plan account. This may make managing your retirement investments a little easier. Qualified retirement plans, deferred compensation plans and individual retirement accounts are all different, including fees and when you can access funds. Assets rolled over from your account(s) may be subject to surrender charges, other fees and/or a 10% tax penalty if withdrawn before age 59½.
  • How much can I put into the Plan? Check out the current contribution limits.

View Invest in Your Future (PDF)

Read the Education Workbook (PDF)

Get the help you need

The sooner you enroll, the more you can possibly save. Take a look at the Enrollment Checklist to see what you’ll need to have handy and enroll today!



How Does it Work?

There are three steps to participating in the Plan:

  1. Enroll in the Plan - It’s easy to participate in the Plan. Contributions are automatically deducted from each paycheck and deposited to your account, so you don’t have to remember to budget or write a check.

    Use the Paycheck Impact Calculator to see how saving pre-tax will affect your paycheck.

  2. Invest your money – You’ll choose funds from the list of investment options available within the Plan. Keep in mind, any investment involves risk and there’s no guarantee that any fund will achieve its investment objectives. But, we’re here to help.

    Use the My Investment Planner to get a personalized retirement strategy, including recommendations for your retirement income goal, savings rate and portfolio asset mix. You’ll need to enroll first and then set up online access to use this tool.

  3. Receive income – You’ll want to invest enough to live in retirement on your terms. Before you begin taking benefit payments, review our Retirement Checklist to make sure you’re ready to transition from investing to spending. Withdrawals are taxable income to you in the year the payments are made.

When you’re ready to receive income, these tips will help you do so wisely.

Get the help you need

The sooner you enroll, the more you can possibly save. Take a look at the Enrollment Checklist to see what you’ll need to have handy and enroll today!



Why Should I Participate?

The Plan helps put you in control of when, where and how much you invest. And that's just the beginning—here are four more reasons why it's smart to participate in the Plan:

1. You can start anytime

Your deferred comp plan will work for you whether you're approaching retirement or just getting started investing – putting away money in a tax-deferred account can offer several benefits.

2. Every little bit helps

Even investing a little bit of money can really add up over time – it's just important to get started! And if you continue to bump up contributions on a regular basis, the overall impact to your paycheck may not seem too painful. Consider putting raises or bonuses into deferred comp – it's an easy way to invest a little more.

Growth Period Ending Balance
Deferral Per Pay Paycheck Impact Annual Pay Reduction Accumulation 10 Years Accumulation 20 Years Accumulation 30 Years
$10 $7.75 $260 $3,525 $9,837 $21,142
$25 $18.75 $650 $8,812 $24,593 $52,855
$50 $37.50 $1,300 $17,624 $49,187 $105,710
$100 $75.00 $2,600 $35,249 $98,374 $211,421
$250 $187.50 6,500 $88,122 $245,934 $528,552
$750 $562.50 $19,500 $264,365 $737,802 $1,585,656

Chart assumptions: 25% tax rate for paycheck impact. 6% annual rate of return. This hypothetical illustration is not intended to predict or project investment results or the performance of your deferred compensation account. It does not assume taxes, fees or account withdrawals during accumulation; if it did, results would be lower.


3. This plan is made for you

The Plan is a State-sponsored benefit available to State employees, and employees of other participating agencies. The New York State Deferred Compensation Board provides strategic direction for the Plan.

4. You'll get personalized service

We are ready and willing to answer your questions. From the HELPLINE to our Account Executives, we have helped educate thousands of employees about investing through the Plan. Feel free to call today — there is no fee to work with an Account Executive.

Learn more about how the Plan serves you throughout your lifetime (PDF).

Get the help you need

The sooner you enroll, the more you can possibly save. Take a look at the Enrollment Checklist for tips on the information you'll need to have handy and enroll today.



What Are My Investment Options?

As a participant in the Plan, you have access to a variety of investment options (PDF) to help you build your retirement account. Whether you're a hands-off investor, a do-it-yourselfer, or somewhere in between, you can potentially find the right investments for you with the Plan's three approaches to investing.

If you get stuck when choosing which funds are right for you, we offer different levels of assistance so you can get the help you need. Keep in mind that investing involves market risk, including possible loss of principal. As you get started in the plan, we’ll help you understand market risk and strategies that may help you deal with it.

Three approaches to investing

The three approaches to your investment option choices are generally aligned with how comfortable or willing you are to manage how your retirement assets are invested through the Plan. Get an overview in How Do I Choose Investment Options? and learn more in the Plan Investment Options Guide (PDF).

Here is a high-level look at each investment approach:

  • Do It For Me: Retirement Date Trusts – Choose a T. Rowe Price Retirement Date Trust based on when you will reach age 65.
  • Do It Yourself: Create a portfolio of investment options based on your investment strategy and tolerance for risk.
  • Specialty Options: A selection of special interest options such as opportunistic growth, environmental, social, governance and self-directed.

Retirement Date Trusts are designed for people who plan to withdraw funds during or near a specific year. Retirement Date Trusts are subject to market risk and loss. Loss of principal can occur at any time, including before, at or after the target date. There is no guarantee that Retirement Date Trusts will provide enough income for retirement.

Before investing, you should carefully consider the fund’s investment objectives, risks, charges, and expenses. This and other information is contained in the fund prospectus or Fact sheet, which is available by calling 1-800-422-8463. Read it carefully before you invest.

Fund performance

Fund performance can help you understand how a particular fund has performed – how much its value has gained or lost over different periods of time. Remember, you may not want to use fund performance alone to make investment decisions, past performance isn't a guarantee of how the fund will perform in the future.

The Plan also provides investment performance reports which contain information about returns, gross investment management fees, etc. They are generally available 25 days following the close of each calendar quarter.

Get the current Quarterly Investment Performance Report (PDF).

View fund performance

Fund prospectuses, fact sheets, and additional investment option information

Get more information about individual investment options within each asset class by reviewing the option’s prospectus and fact sheet.

Some mutual fund companies pay reimbursements to the Plan for administrative functions they would normally perform themselves. Learn more about mutual fund reimbursements.

Get the help you need

Talk to an Account Executive about your investment options, or learn how to choose funds.



Get Ready to Enroll

It only takes a few minutes to sign up. Here are some things you'll need:

Start Enrollment Now

Learn how to fill out a paper enrollment form

Get paper enrollment form

Get the help you need

We'll even walk you through it. If you need more help, call one of our Account Executives.


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