Deferred compensation
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. Newly hired full-time employees* will be automatically enrolled in DCP three months after their hire date. If you wish to opt out of automatic enrollment or wish to learn more please visit the DCP Automatic Enrollment page for additional information.
*Automatic Enrollment does not apply to new temporary and student employees (undergraduates or graduate ASE’s)
The DCP is a 457(b) deferred compensation plan. Your contribution are made pre-tax and you get to choose your investment funds from the Washington State Investment Board’s menu of options. 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.