Trust Committee Meetings for the City of Seattle Voluntary Deferred Compensation Plan
Trust Committee Agendas for the City of Seattle Voluntary Deferred Compensation Plan
Trust Committee Minutes for the City of Seattle Voluntary Deferred Compensation Plan
- 10:00am to 12:00pm on Wednesday, January 25, 2017, SMT 4080
- 10:00am to 12:00pm on Wednesday, March 29, 2017, SMT 4080
- 10:00am to 12:00pm on Wednesday, May 31, 2017, SMT 4080
- 10:00am to 12:00pm on Wednesday, July 26, 2017, SMT 4080
- 10:00am to 12:00pm on Wednesday, September 27, 2017, SMT 4080
- 10:00am to 12:00pm on Wednesday, November 29, 2017, SMT 4080
The City of Seattle Voluntary Deferred Compensation Plan and Trust (“Plan”) is administered by Prudential Retirement. Prudential offers 24-hour, 7-days-per-week telephone and online services where you can obtain your account information and conduct account transactions. Customer Service Representatives are available Pacific Time from 5:00 a.m. to 6:00 p.m. Monday thru Friday, except for holidays observed by the U.S. Stock Exchange.
Locally, you can reach your Prudential Retirement Deferred Compensation Education Consultant at:
Contacting your Deferred Compensation Plan Staff just got easier! Have questions about the plan’s administrative policies or processes? Feel free to review our Frequently Asked Questions (FAQs) document (link below) or send us an email by clicking the link below.
Email to Deferred Compensation City Staff
Deferred Comp FAQs
Dial 1-800-833-5761 to reach Prudential Retirement toll-free. Prudential's Interactive Voice Response (IVR) service is available virtually 24-hours a day, 7-days a week.
Prudential’s Customer Service Representatives are also available Pacific Time from 5:00 a.m. to 6:00 p.m. Monday thru Friday, except for holidays observed by the U.S. Stock Exchange.
By phone you can enroll in the Plan, make exchanges among your investment options, redirect your contribution investment elections, change your contribution amounts, obtain current quotes, prices, yields and account balances, apply for a loan, talk to a representative about the investment options, request literature such as distribution brochures, catch-up contribution brochures, prospectuses and statements, and create or change your personal identification number for the security of your account.
Log on to Prudential's website www.retirement.prudential.com to view current balances and chart savings, obtain daily fund quotes and real-time market options, review historical fund performance information, view your 90-day transaction history, order literature and prospectuses, change your investment elections, obtain Plan information, change your contribution amount, and apply for a loan.
Transaction requests confirmed after the close of the market, normally 1:00 p.m. Pacific Time, or on weekends and holidays, will receive the next available closing price.
You can access your account Online by visiting www.cityofseattledeferredcomp.com and clicking on “Access Your Account”
||Regular Contribution Limits
||Age 50+ Catch-up Contribution Limits
||Last Three Year Special Catch-up Contribution Limits
Up to $36,000
Annual Regular Contributions
To start, increase, decrease, or stop your contribution(s), please contact a Prudential Customer Service Representative toll-free at 1-800-833-5761, or access their website at www.retirement.prudential.com. Changes, including increasing, decreasing, starting or stopping contributions, generally take effect in the month following the change request.
You can consolidate your retirement assets into the City of Seattle Voluntary Deferred Compensation Plan account. Rolling over accounts can potentially lower costs, make it easier to manage a single account, and obtain comprehensive asset allocation help. To roll over balances from other retirement Plans (e.g., Governmental 457(b), 403(a), 403(b), 401(k), 401(a), IRA, and Simplified Employee Pension (SEP) Plan) into your City of Seattle Voluntary Deferred Compensation Plan account, please visit www.cityofseattledeferredcomp.com, select “FORMS”, download the “Rollover From Another Plan Form”, and follow the instructions on the form. You may also seek guidance from the local Prudential Retirement Deferred Compensation Education Consultant located in the Seattle Municipal Tower.
Age 50+ Catch-Up Contributions
If you are age 50 or older, you are eligible to contribute an additional amount above the regular annual limit. The contribution limits are shown in the table above. To take advantage of the age 50+ catch-up provision, access your City of Seattle Deferred Compensation Plan account at www.retirement.prudential.com or contact a Prudential Customer Service Representative at toll-free at 1-800-833-5761 to make a contribution change. Changes, including increasing, decreasing, starting or stopping contributions, generally take effect in the month following the change request.
Last Three-Year Special Catch-Up Contributions
If you are within three years of "normal retirement age" you may be eligible to defer up to twice the regular annual limit, or the amount which you were eligible to contribute in previous years but didn't, whichever is less. To take advantage of the last three-year special catch-up provision, contact Deferred Compensation Plan Staff at firstname.lastname@example.org.
In order to take advantage of the three-year catch-up provision you must complete the Three-Year Catch-Up Deduction Authorization Form.
City of Seattle Voluntary Deferred Compensation Plan and Trust Investment Options
City of Seattle Voluntary Deferred Compensation Investment Style Guide - 3.31.16
If you are a participant in the Plan, actively employed by the City of Seattle, on paid taxable status, and have an account balance of at least $2,000, you are eligible to apply for a loan. Please read the Plan’s Loan Policy found on the education website of www.cityofseattledeferredcomp.com for information on the loan limits and repayment terms.
An unforeseeable emergency is a severe financial hardship to you resulting from a sudden and unexpected illness or accident to you or a dependent, loss of your property due to casualty, or other similar extraordinary and unforeseeable circumstances arising as a result of events beyond your control. No payment can be made to the extent that your hardship may be relieved through reimbursement, compensation by insurance or otherwise; a sale of your assets without causing severe financial hardship; or suspending your deferrals. The payment may not exceed the lesser of the current value of your account or the amount required to satisfy your emergency need [Regs. § 1.457-2(h)(4-5)]. Please speak to a Prudential Customer Service Representative at 1-800-833-5761 to apply for an unforeseeable emergency withdrawal. Your application will be reviewed by Prudential, and withdrawals are subject to approval by the Trust Committee of the City of Seattle Deferred Compensation Plan.
You may elect to receive a lump sum "in-service withdrawal" payment of a low balance, inactive account prior to your permanent separation from City of Seattle service if you meet certain Code requirements which include the following:
- No deferrals have been made to your account for the previous twenty-four (24) months
- Your account balance is less than $5,000
- You have not previously received an in-service cashout distribution under the Plan
- You are an active employee of the City of Seattle
Payment will be made at least thirty (30) days after the Trust Committee receives and approves your written request for payment. Only one in-service withdrawal election will be made available to you during your membership in the Plan [Code §457 (e)(9)(A)].
Segregation of Assets for Alternate Payees
The Plan will establish a sub-account for the Alternate Payee of a Participant upon the Plan’s receipt and acceptance of a domestic relations order providing for the Participant's benefits under the Plan.
Acceptance of a Domestic Relations Order
No action to segregate or otherwise recognize the claim of a Participant's Alternate Payee will be taken unless the Plan is served with a certified copy of a court order providing for all of the following without reference to any separate document unless the separate document is attached:
- The court order must state that it relates to the provision of child support, alimony, or distribution of marital property.
- The court order must refer unambiguously to the City of Seattle Voluntary Deferred Compensation Plan and Trust by clearly defining the plan name.
- The court order must clearly specify the name and mailing address of the Participant and the Alternate Payee. The taxpayer identifying number (i.e., Social Security number) and date of birth of the Participant and Alternate Payee must also be provided to the Plan either in the court order or by separate cover.
- The court order must specify the amount or percentage (or clearly state the method of manner in which the amount or percentage is to be determined) of the Participant's account to be segregated for the separate sub-account of the Alternate Payee.
- The court order must specify the date of segregation (i.e., valuation date) if the Participant is not yet receiving payout under the Plan, or, if the Participant is currently receiving payout, the court order must specify the beginning date of transfer of the Participant's benefits and the amount or percentage (or clearly state the method by which the amount or percentage is to be determined).
- The court order must specify if earnings (gains or losses) are included or excluded in the Alternate Payee’s award.
- The court order must specify if the Alternate Payee shall share in the Participant’s loan with the applicable valuation date, if applicable.
Domestic Relations Order-Provisions Not Acceptable
The Plan shall not accept a domestic relations order that provides for any of the following:
If a domestic relations order contains any of the above provisions, the Plan may reject the order and require the parties to obtain a new order conforming with these requirements.
- The court order requires the purchase of investments or distribution of benefits in a form or method other than those provided by the Plan.
- The court order does not clearly specify the amount or percentage, the method of calculating the amount or percentage to be segregated, the treatment of the Participant’s loan and/ or earnings as of the valuation date.
- The court order specifies a tax treatment of the benefits. The order may state that the tax characterization of the distribution may be determined by Internal Revenue Service regulations and rulings.
- The court order assigns the benefits to the Alternate Payee in violation of the non-assignment provisions of the Plan.
Alternate Payee Sub-Account
When a domestic relations order has been accepted by the Plan, an Alternate Payee sub-account will be established in the Alternate Payee's name.
The assets will be segregated into a sub-account for the Alternate Payee, and the sub-account will be subject to the same terms and conditions of the Plan except the alternate. The Alternate Payee will be allowed to manage the sub-account, transfer its assets among the investment options offered by the Plan, and receive a separate account statement.
The Alternate Payee's sub-account will be subject to the same administrative fees, restrictions on investment transfers, and the ordinances and administrative rules established for the Plan.
The Alternate Payee assumes all risks inherent in participating in the Plan and its investment selections.
The Alternate Payee will be allowed to designate a beneficiary or beneficiaries for the sub-account.
The Alternate Payee will be responsible for keeping the Plan informed of changes in address, and the City of Seattle, Plan, nor Prudential Retirement shall not be responsible for the failure to receive notices or the Alternate Payee's failure to timely exercise options under the Plan because of the Alternate Payee's failure to keep the Plan informed of address change.
Designating a Beneficiary
As a Participant, you have the right and duty to designate a beneficiary to receive benefits under the Plan.
You can add or change your beneficiary online, by calling our vendor Prudential Retirement, or by completing a beneficiary designation form.
- Simply log on to your City of Seattle Deferred Compensation Plan account at www.retirement.prudential.com,
- Once on the landing page, go to the "Personal Information" tab
- Then to the "Beneficiary Information" section
- Complete all requested fields and remember to save the information before logging out.
If calling Prudential Retirement:
- You can contact them toll-free at 1-800-833-5761 Monday thru Friday from 5:00 a.m. to 6:00 p.m. Please press #1 to speak to a Customer Service Representative.
If by form:
- Go to www.cityofseattledeferredcomp.com, select "FORMS", and download the “Beneficiary Form”. Complete the form in its’ entirety and mail or fax the form using the instructions provided at the top of the form for Prudential Retirement.
If you are married, your beneficiary automatically will be your spouse. If you wish to designate another beneficiary, then your spouse must acknowledge in writing the effects of the election, and a Notary Public must witness the spouse's written consent.
The Trust Committee will accept as valid a consent which does not satisfy the spousal consent requirements if the Trust Committee establishes that you do not have a spouse, if the Trust Committee is not able to locate your spouse, if you are legally separated or have been abandoned (within the meaning of state law) and you have a court order to that effect, or if other circumstances exist under which the Secretary of the Treasury would excuse the consent requirements under applicable Tax Code rules. If your spouse is legally incompetent to give consent, your spouse's legal guardian (even if the guardian is you) may give consent.
If you fail to name a beneficiary in accordance with the above procedures, or if the beneficiary named by you predeceases you, then the Plan will pay your benefits in the following order of priority:
- (a) The Participant’s surviving Spouse or state registered domestic partner (SRDP); and if no surviving Spouse or surviving SRDP to
- (b) The Participant’s surviving children, including adopted children, in equal shares; and if none to
- (c) The Participant’s surviving parents, in equal shares; and if none to
- (d) The Participant’s surviving brothers and sisters, in equal shares; and if none to
- (e) The Participant’s estate.
Distribution to Beneficiaries
If you die before drawing benefits or before all benefits are paid, benefits shall be paid to your beneficiary in the manner provided by administrative rule, [Regs. § 1.457-2(i)(3)]. Payments must be sufficiently rapid to satisfy the requirements of Code § 457(d)(2) and Code § 401 (a)(9).
When distribution begins prior to your death, then payout must be made at least as rapidly as it was being made to you. When your beneficiary is an organization, estate, or trust, then payment will be payable in a lump sum in the next monthly payment cycle.
When distribution does not begin prior to your death, and is to be made to an organization, estate, or trust, then payment will be payable in a lump sum within the next monthly payment cycle.
When distribution does not begin prior to your death, and is to be made to your surviving spouse, whether as designated beneficiary, or by default, then payment must begin prior to April 1st in the year after the end of the calendar year in which you would have attained age 70½ or, if your separation date occurs after 70½, prior to April 1st in the year after the end of the calendar year in which you separated from service, and payment may be made over the lifetime of your surviving spouse.
If your surviving beneficiary dies, then the balance of the account will be paid in a lump sum to the beneficiary's estate.
Vacation and Sick Leave Conversions
The City of Seattle Deferred Compensation Plan allows an employee separating from City of Seattle employment due to retirement, termination, or resignation to convert accrued vacation leave into their Plan account. In addition, retiring employees - if their union has not accepted or voted for HRA VEBA - may convert up to 35% or 25% of their accrued sick leave into their Plan account. Other compensatory pay may also be available to convert. Click here for HRA VEBA voting status for unions who are part of the Coalition of City Unions.
Vacation and sick leave and other eligible compensatory pay conversions made to the Plan are subject to the maximum annual contribution limit.
If you are separating from City of Seattle employment and want to convert eligible accrued leave to your Plan account, you will need to:
1. Contact your Human Resources department to determine the value of your accrued sick and vacation leave and other compensatory pay balances.
One month before the conversion of your leave is to be processed, submit the “Leave Conversion Form” found on the education website of www.cityofseattledeferredcomp.com under “Forms”. Upon completion of the form, email the form to Deferred Compensation Plan Staff at email@example.com. You may also fax your request to 206.615.0202, or submit the form via inter-department mail to SHR Deferred Compensation Plan Staff located in the Seattle Municipal Tower on floor 54.
Leaving Your Money in the Plan – Leave all your funds in the Plan until you decide to withdraw funds at a later date using one of the other options listed below. To avoid federal tax penalties, you must begin distribution no later than April of the year after the year in which you turn age 70½. While the money remains in the Plan, your account will continue to be adjusted for investment earnings or losses on remaining funds, and you may receive the benefit of low administrative costs and Plan governance oversight.
Taking Some of the Money Out Soon – You may elect to receive taxable payments in a number of ways. Remember that your account will continue to be adjusted for investment earnings or losses on remaining funds. Although any distribution will be based on your account’s value as of the transaction date, let’s assume your account balance is $36,000 on the day you initiate action.
- Take periodic, taxable payments (e.g., of $500 each) on a monthly, quarterly, semi-annually, or annual basis until you exhaust your total account balance.
- Take a partial, taxable lump sum payment (e.g., $15,000) followed by periodic taxable payments (e.g., of $300 each) until you exhaust your total account balance.
- Take a single taxable payment of part of the account balance (e.g., $5,000), with future distribution(s) delayed until a later time. To avoid federal tax penalties, you must begin your second distribution no later than April of the year after the year in which you turn age 70½.
- Take a taxable lump sum distribution of the entire account balance (i.e., all $36,000), thereby closing your Plan account.
Note: Retired public safety officers are eligible to take a special pre-tax distribution. As permitted by federal law, retired public safety officers may direct that qualified health, accident and long-term care insurance premiums be paid directly from their Plan account; up to $3,000 annually can be exempted from taxation.
Moving Your Money to another Eligible Plan – You also have a number of options. A rollover will not be taxed if funds are transferred per legal requirements. The transfer or rollover will be based on your Plan account value as of the transaction date.
- Roll over your Plan account balance to an Individual Retirement Account (IRA) held by a bank or other financial institution.
- Roll over your Plan account balance to another employer’s plan if your future employer’s plan can accept your funds. (It’s important to check first.) Funds rolled over to other employer plans become subject to the distribution tax provisions of the receiving plan. Depending on the type of employer you move to, the receiving plan may be a 401(a), 401(k), 403(b) or 457 Plan.
Required Minimum Distributions
The Internal Revenue Service requires that you begin distribution of your City of Seattle Deferred Compensation Plan account no later than April 1st of the year after the year you turn age 70½. If you wait until this date, you will receive two taxable distributions; one for the year in which you turned age 70½ and the other for the year following the year you turned age 70½. However, if you continue your service with the City of Seattle beyond age 70½, your distribution shall be no later than April 1st of the calendar year following the calendar year in which you leave City of Seattle service.
Please call Prudential at 1-800-833-5761 to obtain more detailed information and for assistance with determining the minimum amount you are required to withdraw to avoid any tax penalties.
Your funds will remain on deposit until you elect a distribution and/or rollover. When you are ready to elect a distribution or rollover, please call Prudential toll-free at 1-800-833-5761 to speak to a Customer Service Representative.
If you take a distribution, you need to call Prudential toll-free at 1-800-833-5761 at least three business days prior to the date you want your payment to begin. Prudential can also provide additional information on the payment methods and the tax consequences of the option you select.
Until your account is distributed and/or rolled over, it will remain active and will be subject to market-related earnings or losses, as well as regular fees. The distribution and/or rollover will consist of your Plan account value as of the date of the transaction. Until your account is entirely distributed, you may continue to transfer your money among the funds in the Plan and have online access to your account.