{"id":1242,"date":"2014-08-18T15:50:05","date_gmt":"2014-08-18T20:50:05","guid":{"rendered":"https:\/\/www.wisconsin.edu\/ohrwd\/benefits\/?page_id=1242"},"modified":"2025-12-12T16:51:01","modified_gmt":"2025-12-12T22:51:01","slug":"wdc","status":"publish","type":"page","link":"https:\/\/www.wisconsin.edu\/ohrwd\/benefits\/ret\/wdc\/","title":{"rendered":"Wisconsin Deferred Compensation 457 Program"},"content":{"rendered":"<div id=\"toc\" class=\"uwsa-toc callout hidden-print\"><\/div><style>@media (min-width: 768px) {#toc { max-width: 50%} <\/style><script>jQuery(document).ready(function() {\n \t\t\t\t\tgenerateTOC(\"WDC 457 Program\", \"\", \"div.entry-content\" ,1 ,\"true\", \"toc\");\n \t\t\t\t\t });<\/script>\n<h2><strong>Overview<\/strong><\/h2>\n<p>The Wisconsin Deferred Compensation Program (WDC) 457 Program is a supplemental retirement savings plan regulated by <a href=\"https:\/\/www.irs.gov\/Retirement-Plans\/IRC-457b-Deferred-Compensation-Plans\" target=\"_blank\" rel=\"noopener noreferrer\">Section 457 of the Internal Revenue Code<\/a>. Through the WDC program employees can invest a portion of their income for retirement either on a pre-tax or post-tax (Roth) basis or a combination of both. Participation in the program is voluntary; employees make the entire contribution. There is no employer match.<\/p>\n<p>The WDC program is administered by the <a href=\"http:\/\/etf.wi.gov\/\" target=\"_blank\" rel=\"noopener noreferrer\">Department of Employee Trust Funds (ETF)<\/a> through a third-party administrator, Empower (Empower Retirement).<\/p>\n<p>Learn more about the WDC Program at: <a href=\"http:\/\/www.wdc457.org\" target=\"_blank\" rel=\"noopener noreferrer\">www.wdc457.org<\/a>.<\/p>\n<h2><strong>Eligibility<\/strong><\/h2>\n<p>All Universities of Wisconsin employees (including graduate assistants, rehired annuitants, student hourly), are eligible to participate. Some positions funded by scholarships or fellowships are not eligible.<\/p>\n<p>Eligible employees can enroll at any time.<\/p>\n<h2><strong>Enrollment<\/strong><\/h2>\n<p>Enroll and set up your contribution election directly with WDC. Eligible employees can enroll online or over the phone with the <span class=\"doc-icon\"><a class=\"doc-type pdf\" href=\"https:\/\/www.wisconsin.edu\/ohrwd\/benefits\/download\/WDC-code.pdf\" target=\"_blank\">WDC Plan Enrollment Code<span class=\"sr-only\"> pdf<\/span><\/a><\/span>\r\n. Enter &#8216;UW&#8217; when asked for your employer.<\/p>\n<p>For questions, contact the WDC directly at <a href=\"mailto:wdcquestions@empower.com\">wdcquestions@empower.com<\/a> or (877) 457-9327.<\/p>\n<h2><strong>Contribution Changes<\/strong><\/h2>\n<p>You can change your contribution to the WDC at any time. To change your contribution:<\/p>\n<ul>\n<li>Log into your WDC account at <a href=\"https:\/\/wdc457.empower-retirement.com\/participant\/#\/login?accu=WisconsinWR\" target=\"_blank\" rel=\"noopener\">www.wdc457.org<\/a>\n<ul>\n<li>Use the slider bars to model how different contribution changes will affect your take-home pay and retirement savings<\/li>\n<li>Click on <em>Review change(s)<\/em><\/li>\n<li>Click on <em>Submit your change(s)<\/em><\/li>\n<li>If you would like to change your contribution for a specific paycheck date, you may do so on the WDC website under Account on the Contributions page.<\/li>\n<\/ul>\n<\/li>\n<li>Contact the WDC at (877) 457-9327<\/li>\n<\/ul>\n<p>Consider saving a percent of your salary instead of a flat dollar amount. When you contribute a percent of your pay, the amount you contribute increases automatically if you have a change to your pay. It also helps keep you on track to replacing your working income in retirement. You can contribute a percent of your pay or a flat dollar amount to your account.<\/p>\n<h2><strong>Contribution Limits<\/strong><\/h2>\n<p>Federal tax code limits the amount of money that employees can be contributed to the WDC on an annual basis.<\/p>\n<p>Employees can make the maximum contributions under both the WDC Program and the UW 403(b) Supplemental Retirement Program (SRP).<\/p>\n<h4>2025 contribution limits<\/h4>\n<ul>\n<li>Age 49 and under: $23,500<\/li>\n<li>Age 50 or older at any time during the year to age 59: $31,000 ($23,500 + $7,500 catch-up provision)<\/li>\n<li>Age 60 to 63 at any time during the year: $34,750 ($23,500 + $7,500 + $3,750 super catch-up provision)<\/li>\n<li>Age 64 and over: $31,000 ($23,500 + $7,500 catch-up provision)<\/li>\n<\/ul>\n<p>Your contribution will be truncated when the limit is reached and will remain inactive for the remainder of the calendar year. Your contributions will begin again automatically in the new calendar year.<\/p>\n<h4>2026 contribution limits<\/h4>\n<ul>\n<li>Age 49 and under: $24,500<\/li>\n<li>Age 50 or older at any time during the year to age 59: $32,500 ($24,500 + $8,000 catch-up provision)<\/li>\n<li>Age 60 to 63 at any time during the year: $35,750 ($24,500 + $8,000 + $3,250 super catch-up provision)<\/li>\n<li>Age 64 and over: $32,500 ($24,500 + $8,000 catch-up provision)<\/li>\n<\/ul>\n<p>Your contribution will be truncated when the limit is reached and will remain inactive for the remainder of the calendar year. Your contributions will begin again automatically in the new calendar year.<\/p>\n<p><strong>Mandatory Roth Catch-up Contributions<\/strong><\/p>\n<p>Beginning <em>January 1, 2026<\/em>, employees who <em>earned more than $150,000<\/em>\u00a0from the Universities of Wisconsin\u00a0in <em>2025<\/em>, all\u00a0<em>age-based catch-up<\/em> contributions must be made on and Roth (after-tax) basis. Once your pre-tax contributions reach the 2026 basic limit ($24,500) your contributions will automatically be changed to Roth. You can change or stop your contribution amount at any time.\u00a0Aged-based catch-ups include the age 50 and older catch-up ($8,000) and the age 60-63 catch-up ($3,250).<\/p>\n<p><strong>Special Catch-Up Contributions<\/strong><\/p>\n<p>Employees within the 3 years before attainment of normal retirement age (typically age 65), may be eligible to use the Special Catch-Up Contribution provision, which could be as much as twice the basic amount. Employees may not contribute to both the Special Catch-Up and the Age 50+ Catch-Up options in the same calendar year, even if eligible for both. Catch-up contribution limits are calculated based on how much was under-contributed in prior years. Contact WDC to determine if you are eligible. Employees are responsible for monitoring contributions to ensure that they stay within the annual limits. Special Catch-Up contributions may either be pre-tax or Roth.<\/p>\n<h2><strong>Investment Choices<\/strong><\/h2>\n<p>WDC offers a wide range of investment options. All options are no-load which means there are no sales commissions or broker fees. Participants have access to low-cost institutional share classes. The investment options are divided into 4 tiers:<\/p>\n<ul>\n<li>Target Date Retirement Funds<\/li>\n<li>Passive Index Funds<\/li>\n<li>Actively Managed Funds<\/li>\n<li>Self-Directed Brokerage Account<\/li>\n<\/ul>\n<p>An investment management fee is deducted by each investment option\u2019s management company (not by the WDC) before the daily price or performance is calculated. These fees are used to pay for securities trading in the underlying funds and other management expenses. Investment management fees vary by investment option. A full list of the WDC\u2019s investment options and their expense ratios can be accessed at <a href=\"http:\/\/wdc457.org\/\">wdc457.org<\/a>. Go to <em>Investing,<\/em> then <em>Investment Information<\/em>, and click\u00a0<em><a href=\"https:\/\/docs.retirementpartner.com\/ioag\/98971-01_IOAG.pdf\">Wisconsin Deferred Compensation Program Investment Performance<\/a>.<\/em><\/p>\n<p>For help choosing and\/or managing your investments, schedule a meeting with a local WDC Retirement Plan Advisor. Go to <a style=\"background-color: #ffffff\" href=\"http:\/\/wdc457.org\" target=\"_blank\" rel=\"noopener\">wdc457.org<\/a> then <em>Schedule a Meeting<\/em> in the bottom left-hand corner to schedule time with a WDC Retirement Plan Advisor.<\/p>\n<h2><strong>Fees<\/strong><\/h2>\n<p>WDC administrative fee are based on account balance. Fees are charged as a monthly flat dollar amount and are automatically deducted from participant&#8217;s account. The fees cover the cost of the WDC including the website, statements, and WDC Retirement Plan Advisors located statewide. The WDC is non-profit and participant administrative fees may not exceed the cost of administering the plan.<\/p>\n<table style=\"width: 640.422px\">\n<tbody>\n<tr>\n<td style=\"width: 189px\"><strong>Account Balance<\/strong><\/td>\n<td style=\"width: 187.422px;text-align: center;vertical-align: middle\"><strong style=\"font-family: inherit;font-size: inherit;background-color: transparent\">Monthly \/ Annual Fee<br \/>\n(as of January 1, 2024)<\/strong><\/td>\n<td style=\"width: 187.422px;text-align: center;vertical-align: middle\"><strong style=\"font-family: inherit;font-size: inherit;background-color: transparent\">Monthly \/ Annual Fee<br \/>\n(as of January 1, 2025)<\/strong><\/td>\n<\/tr>\n<tr>\n<td style=\"width: 189px\">$1-$5,000<\/td>\n<td style=\"width: 187.422px;text-align: center;vertical-align: middle\">$0 \/ $0<\/td>\n<td style=\"width: 187.422px;text-align: center;vertical-align: middle\">$0 \/ $0<\/td>\n<\/tr>\n<tr>\n<td style=\"width: 189px\">$5,001 &#8211; $25,000<\/td>\n<td style=\"width: 187.422px;text-align: center;vertical-align: middle\">$0.75 \/ $9<\/td>\n<td style=\"width: 187.422px;text-align: center;vertical-align: middle\" rowspan=\"6\">$3.90 \/ $46.80<\/td>\n<\/tr>\n<tr>\n<td style=\"width: 189px\">$25,001 &#8211; $50,000<\/td>\n<td style=\"width: 187.422px;text-align: center;vertical-align: middle\">$1.75 \/ $21<\/td>\n<\/tr>\n<tr>\n<td style=\"width: 189px\">$50,001 &#8211; $100,000<\/td>\n<td style=\"width: 187.422px;text-align: center;vertical-align: middle\">$4 \/ $48<\/td>\n<\/tr>\n<tr>\n<td style=\"width: 189px\">$100,001 &#8211; $150,000<\/td>\n<td style=\"width: 187.422px;text-align: center;vertical-align: middle\">$5 \/ $60<\/td>\n<\/tr>\n<tr>\n<td style=\"width: 189px\">$150,001 &#8211; $250,000<\/td>\n<td style=\"width: 187.422px;text-align: center;vertical-align: middle\">$7 \/ $84<\/td>\n<\/tr>\n<tr>\n<td style=\"width: 189px\">over $250,000<\/td>\n<td style=\"width: 187.422px;text-align: center;vertical-align: middle\">$10.25 \/ $123<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<h2><strong>Beneficiary Information<\/strong><\/h2>\n<p>You are encouraged to designate a beneficiary(ies) to ensure benefits are paid according to your wishes. Whenever you have a life event, review and update your beneficiary designations. Beneficiary designations can be changed at any time.<\/p>\n<p>For more information on beneficiary designations, see the <a href=\"https:\/\/www.wisconsin.edu\/ohrwd\/benefits\/beneficiary\/\" target=\"_blank\" rel=\"noopener noreferrer\">Beneficiary Information web page<\/a>.<\/p>\n<h2><strong>Forms &amp; Resources<\/strong><\/h2>\n<p>WDC accounts can be managed online, over the phone, or with a local WDC Retirement Plan Advisor.<\/p>\n<ul>\n<li>Online: <a href=\"http:\/\/www.wdc457.org\" target=\"_blank\" rel=\"noopener noreferrer\">www.wdc457.org<\/a>\n<ul>\n<li>The following can be found on the WDC website without logging in:\n<ul>\n<li><a href=\"https:\/\/docs.empower-retirement.com\/EE\/WisconsinWR\/DOCS\/Plan-Highlights.pdf\" target=\"_blank\" rel=\"noopener\">WDC Program Highlights<\/a><\/li>\n<li><a href=\"https:\/\/docs.empower.com\/EE\/WisconsinWR\/DOCS\/Investment-Options-Flier.pdf?_gl=1*whzlkb*_ga*MTQ2NzI2NjgzNy4xNjQ1ODA0ODEw*_ga_MDRRLSW4FM*MTY5OTYyNzYwNy42NzUuMS4xNjk5NjI3NjE4LjQ5LjAuMA\" target=\"_blank\" rel=\"noopener\">WDC Investment Options<\/a><\/li>\n<li><a href=\"https:\/\/docs.retirementpartner.com\/ioag\/98971-01_IOAG.pdf\" target=\"_blank\" rel=\"noopener\">WDC Investment Performance<\/a><\/li>\n<li><a href=\"https:\/\/docs.empower.com\/EE\/WisconsinWR\/DOCS\/Distribution-Options.pdf?_gl=1*8uju7w*_ga*MTQ2NzI2NjgzNy4xNjQ1ODA0ODEw*_ga_MDRRLSW4FM*MTY5OTYyNzYwNy42NzUuMS4xNjk5NjI3NjE4LjQ5LjAuMA\" target=\"_blank\" rel=\"noopener\">WDC Distribution Options Guide<\/a><\/li>\n<li><a href=\"https:\/\/docs.empower-retirement.com\/EE\/WisconsinWR\/DOCS\/Plan-and-Trust-Document.pdf\" target=\"_blank\" rel=\"noopener\">WDC Plan and Trust Document<\/a><\/li>\n<\/ul>\n<\/li>\n<\/ul>\n<\/li>\n<\/ul>\n<ul>\n<li style=\"list-style-type: none\">\n<ul>\n<li>After logging into your WDC account, you may:\n<ul>\n<li>Update your contribution election<\/li>\n<li>Submit or change your beneficiary<\/li>\n<li>Consolidate accounts<\/li>\n<li>Aggregate your outside accounts to obtain your net worth and review your holistic financial picture<\/li>\n<li>Get help budgeting and\/or information about emergency savings<\/li>\n<li>Review your probability of retiring when you want to<\/li>\n<li>Update your account information, such as address, username, and password<\/li>\n<\/ul>\n<\/li>\n<\/ul>\n<\/li>\n<li>By Phone:\n<ul>\n<li>WDC representatives are available Monday through Friday between 7 am and 9 pm, and Saturday between 8 am and 4:30 pm at (877) 457-9327. Press 0 and follow the prompts to speak to a representative.<\/li>\n<li>For local assistance in Madison, answer &#8216;yes&#8217; to the prompts Monday through Friday between 8 am and 4:30 pm.<\/li>\n<\/ul>\n<\/li>\n<li>With a Retirement Plan Advisor:\n<ul>\n<li>Schedule a virtual or in-person meeting with a WDC Retirement Plan Advisor. Go to <a href=\"http:\/\/wdc457.org\" target=\"_blank\" rel=\"noopener\">wdc457.org<\/a> then <em>Schedule a Meeting<\/em> in the bottom left-hand corner.<\/li>\n<\/ul>\n<\/li>\n<li>\u00a0Email:\n<ul>\n<li><a href=\"mailto:wdcquestions@empower.com\" target=\"_blank\" rel=\"noopener noreferrer\">wdcquestions@empower.com<\/a>.<\/li>\n<\/ul>\n<\/li>\n<\/ul>\n<p>The WDC is administered by the <a href=\"http:\/\/etf.wi.gov\/\" target=\"_blank\" rel=\"noopener noreferrer\">Department of Employee Trust Funds (ETF)<\/a>. Because the WDC is administered by ETF, active employees who are vested in the Wisconsin Retirement System (WRS) can view an estimated WRS pension benefit projection in their WDC account. After logging into your WDC account the projection can be found on the homepage under WRS Pension Benefit Estimate.<\/p>\n<p>Review the <a href=\"https:\/\/www.wisconsin.edu\/ohrwd\/benefits\/terms-conditions\/\" target=\"_blank\" rel=\"noopener noreferrer\">Terms and Conditions<\/a>.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Overview The Wisconsin Deferred Compensation Program (WDC) 457 Program is a supplemental retirement savings plan regulated by Section 457 of the Internal Revenue Code. Through the WDC program employees can invest a portion of their income for retirement either on a pre-tax or post-tax (Roth) basis or a combination of both. Participation in the program [&#8230;]<\/p>\n","protected":false},"author":20,"featured_media":0,"parent":55,"menu_order":0,"comment_status":"closed","ping_status":"closed","template":"page-templates\/42.7563.php","meta":{"footnotes":""},"class_list":["post-1242","page","type-page","status-publish","hentry"],"_links":{"self":[{"href":"https:\/\/www.wisconsin.edu\/ohrwd\/benefits\/wp-json\/wp\/v2\/pages\/1242","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.wisconsin.edu\/ohrwd\/benefits\/wp-json\/wp\/v2\/pages"}],"about":[{"href":"https:\/\/www.wisconsin.edu\/ohrwd\/benefits\/wp-json\/wp\/v2\/types\/page"}],"author":[{"embeddable":true,"href":"https:\/\/www.wisconsin.edu\/ohrwd\/benefits\/wp-json\/wp\/v2\/users\/20"}],"replies":[{"embeddable":true,"href":"https:\/\/www.wisconsin.edu\/ohrwd\/benefits\/wp-json\/wp\/v2\/comments?post=1242"}],"version-history":[{"count":11,"href":"https:\/\/www.wisconsin.edu\/ohrwd\/benefits\/wp-json\/wp\/v2\/pages\/1242\/revisions"}],"predecessor-version":[{"id":29608,"href":"https:\/\/www.wisconsin.edu\/ohrwd\/benefits\/wp-json\/wp\/v2\/pages\/1242\/revisions\/29608"}],"up":[{"embeddable":true,"href":"https:\/\/www.wisconsin.edu\/ohrwd\/benefits\/wp-json\/wp\/v2\/pages\/55"}],"wp:attachment":[{"href":"https:\/\/www.wisconsin.edu\/ohrwd\/benefits\/wp-json\/wp\/v2\/media?parent=1242"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}