Nevada Public Employees’ Deferred Compensation Program (NDC)
Plan History and Purpose
NDC is a voluntary retirement savings program sponsored by the State of Nevada pursuant to Nevada Revised Statue (NRS) 287.250 – 287.370, and Title 26 IRS Code, Section 457(b). NSHE is not the plan sponsor but NSHE employees are eligible to participate in the plan.
How You Participate
NDC is a voluntary plan that provides you with an opportunity to supplement your retirement savings and build a larger retirement nest egg than you otherwise would be able to build.
The plan’s recordkeeper is VOYA. Please note that the recordkeeper is different to those offered under the NSHE sponsored plans (i.e., TIAA).
You can contribute a percentage of your salary up to the maximum amount allowed by law. Currently the maximum allowable contribution is $18,000. Participants over the age of 50 can contribute an additional $6,000. If you are within three years of your normal retirement age, you may qualify to contribute more than the regular maximum under the Program’s 3-year Catch-Up Provision. If you qualify for the 3-year Catch-Up, you can contribute the maximum regular contribution of $18,000 plus the missed contributions up to $36,000. NSHE does not match your contributions in this plan.
You choose how to invest your contributions. The amount of money available to you when you leave NSHE or retire will depend upon the performance of the investments you choose.
When You are Eligible to Receive Your Retirement Benefits
Distribution may be taken under any of the following circumstances:
Severance from employment
Attainment of age 70 ½, whether or not you are severed from employment. However, you may still continue to contribute to the Plan, whether or not you begin a distribution, as permitted under the Code
Subject to certain requirements outlined in section 4.4, in-service de minimis withdrawal.(f) In-Service Distributions from Rollover Accounts. If you have a separate account attributable to rollover contributions to the plan, you may at any time elect to receive a distribution of all or any portion of the amount held in the rollover account
You may also access your account while you are still employed for the following purposes:
PERS Service Credit Purchase – You may request a transfer from your NDC account to Nevada PERS for service repurchase or payment while you are still working. This is a non-taxable transfer. To determine eligibility and cost, please contact Nevada PERS at 1(866) 473-7768.
Cash Out – This provision is only available to participants who have less than a $5,000 account value and have not contributed to the Program in the previous 24 months.
How Your Benefits Are Paid to You
Upon becoming eligible for a distribution, you may elect to receive so much of your account in installment payments made at least annually. You may elect to choose a lump sum payment distribution option in addition to the various systematic payout options that are available and may vary the amount or frequency of any such payments. However, at no time may the installment payment period exceed your life expectancy as determined by Treasury Regulations. The payout options described under this section do not apply to you if you elect to have your distributions annuitized.
Borrowing From the Plan
You may not borrow money from this plan.
For more information about the Nevada Public Employees’ Deferred Compensation Plan, visit the website at http://defcomp.state.nv.us/.