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Deferred Compensation / 457 Plan

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The City of Lewisville’s Deferred Compensation Plan is an investment for your future, designed to provide an additional source of income to help you financially in your retirement years.  Participation in the Deferred Compensation Plan is voluntary and full-time employees are eligible to join anytime.  Only full-time employees receive a matching contribution from City of Lewisville.

Participation in the Retirement Plan allows you to:

  • Invest pretax contributions
  • Choose from various investment options 
  • Provide for a supplemental income at retirement 
  • If you contribute at least 4% of your annual gross salary then you will receive a matching
    contribution from the City of 3.76% of your annual gross salary or 5.21% (for participants hired before April 1, 1986)
  • Contributions to the Plan are deducted each pay period on a pretax basis and do not become taxable income until a withdrawal or a lump sum distribution is made after separation or retirement.

Plan Contributions

Employee Contributions to the Plan are deducted on a tax-deferred basis from each paycheck.  The 2017 combined employee and City contribution amount cannot exceed $18,000 annually if under the age of 50, or $24,000 if 50 or over.

Matching Contributions

City of Lewisville matches contribution of full-time employees, based upon the percentage that an employee contributes to the Plan as illustrated in the following schedule:

   matching city contribution

 employee contributes 0% - 3.9%

 

 0%

 Employee contributes 4% or more

(hired on or after 4/1/1986)

 3.76%

 Employee contributes 4% or more

(hired before 4/1/1986)

 5.21%

Plan Vesting

In the majority of retirement plans, vesting is based on the number of years that you actively participate in a plan.  Vesting in your Deferred Compensation Plan is immediate.

Providers

You may invest your account balance among a wide variety of investment options to achieve maximum return on your savings.  You have the options of choosing from the following providers:

All account information can be obtained through the customer service center of each provider.  The customer service center provides account information on:

  • account balances
  • distributions
  • reallocated funds
  • emergency withdrawals
  • loan information & loan packages

Loan & Unforeseeable Emergency Withdrawals

Loan Program
Participants may borrow up to 50% of their account balance.  The minimum amount that can be borrowed is $1,000.  The maximum amount that can be borrowed is $50,000.

Financial Hardship Withdrawals
The retirement plan is designed to be a long-term investment program to supplement an employee’s retirement income.  We encourage you to make these funds your last resort for taking care of financial emergencies.  But in specified instances where funds cannot be obtained from other sources, City of Lewisville Deferred Compensation Plan has a provision which allows funds to be withdrawn for financial hardships.  Employees should contact the provider for further details regarding hardship withdrawals.