Washington State Deferred Compensation Program (WSDCP) is a retirement savings program operating under Section 457(b) of the Internal Revenue Code (IRC). It is an agreement between an employee and the state that postpones ("defers") part of the employee’s income. This income deferral reduces current taxable income and allows the deferred income to grow untaxed until retirement. The state of Washington retains ownership of funds invested through this plan until retirement.
Note: UW employees may participate in both the Voluntary Investment Program and the WSDCP in the same tax year at the same time. If you wish to maximize your tax deferred savings by using both plans in the same tax year, contact the Department of Retirement Systems at 1-888-327-5596 for assistance in plan enrollment.
You are eligible to participate in the WSDCP if you are a UW employee working:
Under WSDCP, you have several investment choices depending on how closely you want to manage your portfolio:
For 2015, you are allowed to defer up to:
For 2014, you are allowed to defer up to:
Special limits may apply for those within three years of retirement. Contact the WSDCP for more information.
For enrollment materials, contact the WSDCP, or call the WSDCP Information Line at 1-888-327-5596. Once you have enrolled with WSDCP, the UW Benefits Office will establish your payroll deductions according to instructions from WSDCP.
Call the WSDCP Information Line at 1-888-327-5596 to stop your contributions to the plan.