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Deferred Compensation 457(b) Plan

The Deferred Compensation 457(b) Plan allows eligible participants to accumulate tax-deferred savings for retirement or other financial needs beyond the limits of the University of Rochester 403(b) Retirement Program. With the Deferred Compensation 457(b) Plan you can:

  1. Save more of what you earn on a pre-tax basis.
  2. Defer taxes until you take the money out.
  3. Choose how contributions are invested.

Deferred Compensation 457(b) Plan Overview


Eligible individuals include:
Faculty members or senior staff (pay grades 59, 98, and 99) of the University who meet the following eligibility requirements:

Scheduled to earn annual compensation* in 2018 of at least $130,000 ($10,000 more than the IRS-specified highly compensated employee dollar limit for the year [$120,000 for 2018])


Are contributing the IRC maximum amount to the University 403(b) Retirement Program ($18,500 for 2018)

Service Requirement

No service requirement

Voluntary Contributions

Pre-tax salary deferrals
Note: You may enroll in the Plan any time after you become eligible; however, IRS regulations dictate that enrollments must be processed no earlier than the first of the month following the month in which you enroll.

Contribution Limits

$18,500 for 2018
Note: Catch-Up Contributions permitted if within 3 years of age 65 (normal retirement age)

Investment Options

Faculty/staff decide how contributions are invested among a selection of professionally managed funds. For investment option details, visit TIAA.

“Commencement Period” – Distribution Election Requirement upon Termination/Retirement

Following separation from service, participants have 60 days to make an election with respect to when they want funds paid. Failure to make an election within the 60-day Commencement Period will result in a lump-sum payment distribution, less applicable taxes withheld.


Federal tax and employee benefit rules require the Deferred Compensation 457(b) Plan to be “unfunded.”

To defer taxation, i.e., to create an unfunded plan, it is necessary that accounts be subject to potential risk of forfeiture should the University become insolvent. This does not mean that the Plan does not have any assets. The University remits contributions to the recordkeeper, TIAA.

Ownership of Assets

Under Section 457(b) of the Internal Revenue Code, your deferrals under this Plan (including any earnings) must be part of the University of Rochester’s general assets. This means that in the unlikely event that the University of Rochester ever became insolvent, your Plan benefits would be subject to the claims of the University’s general creditors and you might lose part or all of your benefits.

* Annual compensation for 457(b) eligibility means the current annual pay rate and the previous calendar year’s extra compensation and summer compensation

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To enroll, change investments, change your beneficiaries, and to view your account, visit or call 800-410-6297.

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