The Wisconsin Deferred Compensation Program is an optional, supplemental retirement savings plan for all working state and university employees. Local government and school district employees may also use the WDC if their employers offer it.
The WDC is an Internal Revenue Code Section 457 deferred compensation plan . A 457 deferred compensation plan allows you to save money directly from your paycheck for retirement, and offers tax benefits and different investment options. The plan has a bit more flexibility than similar plans like those offered through IRC sections 401(k) or 403(b).
The value of your WDC account is based on how much money you put into the account and how much money your investments make over time.
The cost to save for retirement with the WDC depends on your account balance. No state tax dollars may be used to run the WDC. Employees using the plan fund it.
As of January 1, 2020, the costs are:
|If Participant Balance is Between:||Fee Per Month||Fee Per Year|
|$0 to $5,000||$0.00||$0.00|
|$5,001 to $25,000||$1.00||$12.00|
|$25,001 to $50,000||$3.25||$39.00|
|$50,001 to $100,000||$6.50||$78.00|
|$100,001 to $150,000||$8.50||$102.00|
|$150,001 to $250,000||$11.75||$141.00|
The Deferred Compensation Board oversees the WDC. This Board maintains the Plan and Trust document, which governs the WDC. The Board also has a written Investment Policy Statement that explains how investment options are selected and monitored. Options that do not meet the Board’s standards may be removed and other options added.
For more information, see the WDC website, or contact the WDC at:
Wisconsin Deferred Compensation Program
5325 Wall Street, Suite 2755
Madison, WI 53718-7982