Deferred Compensation/457 Plan

The City of Lewisville sponsors a deferred compensation program as described under Section 457 of the Internal Revenue Code. The purpose of the program is to allow employees to set aside and invest a portion of their earnings for future income at retirement. Participation in the program is entirely voluntary, except for Part-time and Seasonal employees, who do not participate in the Texas Municipal Retirement System. Part-time and Seasonal employees are required to participate due to the Consolidated Omnibus Budget Reconciliation Act of 1990 which requires all Part-time and Seasonal employees to participate in some kind of retirement plan if they do not participate in Social Security.

Regular, full-time employees who elect to participate must contribute at least 4% of their income each pay day in order to receive the City match of 3.76% (or 5.21% for employees hired prior to April 1, 1986).

Part-time employees and Seasonal employees must contribute 7.5% to the plan, in lieu of Social Security.

Effective January 1, 2010, employees may defer $16,500 of their gross income if they are under the age of 50 and $22,000 of their gross income if they are age 50 or over. Employees may choose to direct their deferred compensation funds into various investment options available through the plan.

For more information on the plan or to access your account directly, link to:

Nationwide Retirement Solutions

VALIC - American General Financial Group