Employee Contributions (SOI)

When you participate in the Retirement Investors' Club (RIC), you choose how much to contribute to a 457 employee contribution account through automatic payroll deductions (see contribution limits on this page).

You also choose to have deductions taken from your paycheck before state and federal income taxes (pretax) or after taxes withheld (post-tax Roth). There are no vesting requirements.

Contribution limits

There is no minimum contribution to participate in the 457. The 457 plan maximum contribution limits are declared by the IRS annually. See IRS annual contribution limits.

Payroll deductions

You may change or stop deductions at any time. If you choose to discontinue contributions, your match contributions will also be discontinued.

RIC 457 payroll deduction elections are made in Workday and will affect the next available check from the date of your request. 

To make an election, log into Workday and choose the Benefit Plan option that includes the:

• Name of your provider,
• How you want your deductions taxed (pretax or Roth) and
• Preferred payroll deduction frequency (1st paycheck monthly, 2nd paycheck monthly, 1st and 2nd paychecks monthly or all payrolls)

You will then select the contribution type of either dollar amount or percentage (of gross pay) and enter the dollar amount or percent.  For more information, review the Deferred Compensation Smart Guide

Note: We no longer process payroll change requests submitted on the RIC Account Form. 

Age 50+ limit

If the amount you wish to defer will cause you to go over the Age 50+ limit, you may possibly qualify for the 3-Year Catch-Up limit. This plan allows employees who are close to retirement to make contributions up to twice the regular contribution limit.

Final paycheck

If you are requesting a final check payroll deduction, do not make the election in Workday.

When you retire, you have the option to defer final wages, unused sick pay (up to $2,000), and unused vacation pay from your final paycheck (up to the IRS maximum limit). You have the option to contribute pretax, post-tax, or both. 

Workday terminology

• Retirement Savings refers to the employer-sponsored voluntary retirement savings benefit for State employees. This is not IPERS.
• Available Benefit Plans for the 457 plan refer to the multiple options that describe participant elections for the following: RIC Provider, how the deduction will be taxed, and the payroll frequency.
• Percentage of Pay is based on the percent of gross salary you elect to deduct. The percent you choose will be deducted from each paycheck in the frequency you elect.
• Pretax Deductions are not taxed when invested. This results in a reduction of reported taxable income to the IRS by the amount saved to RIC in the tax year. Taxes are taken when withdrawn.
• Roth (post-tax) Deductions are taxed before being invested. Earnings are tax-free if qualified.
• Payroll Frequency options include all paychecks in a year, just the 1st and 2nd paychecks of each month, or only 1 paycheck each month (participant elects 1st or 2nd paycheck).