Q Is the 457 tax-deferred retirement plan one and the same as the PERF
Retirement Plan, or is the 457 something totally different?Thank you
A Good question. I was a bit confused on this subject initially as well.
The two plans are totally different.
The 457 plan is simply a convenient way (payroll deduction) for employees to save money for retirement - and reduce their taxes. Money is deducted out of our checks BEFORE taxes and deposited in an account for us - where we direct how it will be invested. The investment gains are also deferred into the future. It is assumed that when we withdraw this money we will be retired - and be taxed at a lower rate than when we were working. The 457 Plan is strictly optional and only employee money is involved - there is no Library contribution.
We've described aspects of the PERF Retirement Plan in this blog before. There are two parts of PERF - the Annuity Savings Account and the Defined Benefit Plan. Both are fully paid for by the Library. For details, contact HR, check the PERF website (www.PERF.IN.GOV), or call PERF toll free at 1-888-526-1687.
Peter
Allen County Public Library!
"Great Hall"
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