Updated April 24, 2020 to reflect COVID-19 related changes
As a UW employee, you’re eligible to participate in Washington state’s Deferred Compensation Program (DCP), a retirement plan that offers you another opportunity to maximize your tax-advantaged savings.
As a 457(b) deferred compensation plan, you pick the funds then invest a pretax portion of each paycheck. Your investments grow tax free until you’re ready to withdraw them at retirement. Because DCP is a voluntary savings program, you can start, stop, or change your contributions at any time. Any changes to your contribution rate will be effective the pay period after you elect a change. For example, a contribution rate change on January 5 will be effective for the January 16 through January 31 pay period. This pay period is paid on February 10, which is where you will see your new contribution rate.
You can use the DCP in addition to both your mandatory UW retirement plan and the UW Voluntary Investment Program (VIP), if you’re enrolled. The annual contribution limit for the DCP is separate from the limit that applies to the UW VIP. So consider enrolling in the DCP if you want yet another option for building your tax-advantaged retirement savings.
Learn more and enroll
The DCP is part of the Washington State Department of Retirement Systems. Visit their website to learn more about how DCP works including the investment options available and the annual contribution limits. You’ll also find enrollment instructions on their website.
Requesting a coronavirus-related distribution
The Coronavirus Aid, Relief and Economic Security (CARES) Act of 2020 was signed into law on March 27, 2020. The CARES Act adds a new opportunity to receive up to a $100,000 distribution from certain retirement plan accounts if you meet qualifying circumstances related to COVID-19. Deferred Compensation Program (DCP) is included, read more on the DRS webpage.