Retirement Savings

City of Chicago Deferred Compensation Plan - Nationwide

The City of Chicago offers a Section 457 deferred compensation plan. As an employee of the City of Chicago, you are eligible to enroll and contribute to the 457(b) plan. This plan provides you an opportunity to invest a portion of your salary on both a pre-tax and/or Roth (after-tax) basis to save for retirement. Employees who enroll in the plan make voluntary contributions each pay period and invest in an array of investment options to help prepare for their income needs in retirement. This account is a voluntary contribution that can help to bridge the gap between your defined benefit plan (pension) and how much you will need while in retirement. Some Collective Bargaining Agreements (CBAs) provide for employee matching contributions into a 401(a) match plan. See your applicable CBA for details.

City of Chicago Deferred Compensation Plan

Enrolling into the Deferred Compensation Plan

Start saving or increase your contribution today at ChicagoDeferredComp.com.

Register to attend the monthly webinar series to learn more about your plan.

Schedule an in person or virtual appointment with a Retirement Specialist.

 

Key reasons to consider your Chicago Deferred Compensation Plan:
  • Tax Flexibility — Tax-deferred and Roth after-tax contributions
  • Low Cost — Through group buying, we negotiate lower fund fees than individuals may be able to get on their own
  • Easy — Payroll deduction means your contributions are automatic
  • Portability — If you leave your job, you may be able to roll your assets into another eligible retirement plan or IRA
  • Flexible — Change your investment mix or contribution amount at any time
  • Automatic — Earnings are reinvested, harnessing the power of compounding
  • Access — You can withdraw 457(b) assets when you leave service or retire, regardless of your age
  
  • Investment funding options and account management services continue to be available
  • Contributions stop with your last paycheck
  • Consider deferring eligible time-due accumulated pay (i.e., “Buyout”); participants may defer vacation, furlough, and comp time upon retirement (eligibility may vary)

    – Election must be signed on a Nationwide Buyout Form prior to your retirement date and is subject to applicable annual contribution limits

  • Your plan accepts eligible rollover distributions from other eligible retirement plans — regardless of employment status
  • Eligible plans include 401(a) pension, spousal and widowers’ refunds, 401(k), 403(b), 457(b) and traditional IRA accounts
  • Rollovers are not subject to annual contribution limits

                    – Complete the Nationwide Incoming Rollover Form and contact the carrier institution to request a direct rollover to Nationwide

  • Withdrawals are permitted at any age upon separation of employment; the employer must update employment records and report to Nationwide before the first distribution can be processed

– Time frames may vary; after the retirement/ termination date, please allow approximately 30 days for the employer to provide Nationwide with an employment status update

  • In-service withdrawals are permitted upon reaching age 591/2
  • Payout options are flexible; partial lump-sum and systematic withdrawals are permitted.

– Distributions are taxable; withdrawn amounts are considered ordinary taxable income

– 457(b) assets are not subject to an early withdrawal penalty

– Direct deposit is available

– Distribution requests may be initiated online or by completing a form

  • Required minimum distributions (RMDs)

– Currently, distributions must begin no later than April 1 following the calendar year when you reach age 73 or sever employment, whichever is later; the RMD age is set to increase to 75 by year 2033.

Three reasons to contact Nationwide® when you’re planning to retire:

The City of Chicago Deferred Compensation plan provides multiple distribution options to provide flexibility when determining how and when you receive funds from your account after severing employment.

Leverage the plan to maximize your income tax deferrals. You may be eligible to convert unused vacation, comp time and/or furlough days into a deferred compensation plan contribution. Also, if you are eligible to receive a refund from your pension fund — such as a spousal or widower’s payment — you may elect to roll over the proceeds into your account.

Talk with a local Nationwide Retirement Specialist about how and why you should consider letting your account’s investments potentially grow through your retirement. The City of Chicago Deferred Compensation Plan is with you for life.

Pension and Annuity Funds
  • Address: 321 N Clark Street, Suite 700, Chicago, IL 60654-4739
  • Phone: (312) 236-4700
  • Fax: (312) 527-0192
  • Address: 321 N Clark Street, Suite 1300, Chicago, IL 60654-4739
  • Phone: (312) 236-2065
  • Fax: (312) 236-0574
  • Address: 20 South Clark Street, Suite 300, Chicago, IL 60603
  • Phone: (312) 726-5823
  • Fax: (312) 726-2316