Deferred Compensation Program
Section 457 Internal Revenue Code

The Library District offers employees the opportunity to participate in the (P.E.D.C.) Public Employee Deferred Compensation Program (457) available through the ICMA Retirement Corporation or the Deferred Compensation Plan offered through the Educational Employees Credit Union. These savings plans permit employees to set aside a portion of their salary in accordance with the terms and conditions of the plan, to be paid at a later date. No federal or state income taxes are assessed on contributions until the time of withdrawal.

The Library District shall evenly match employee contribution, based on years of continuous service as of July 1. Matching will begin on January 1 following the date of enrollment into the Plan.

Less than 5 years of service 1% of salary

5 through 9 years of service 2% of salary

10 or more years of service 3% of salary

EXAMPLE: An employee with less than 5 years of service elects to Contribute 10% of his salary. On January 1 the District will contribute another 1%. An employee with 12 years of service elects to contribute 1% of his salary. On January 1 the District will match his 1% contribution.

More details are available in the Policy Manual.