The State of Arkansas, through legislation, entered into an agreement under Act 669 of the 1975 Acts of General Assembly of Arkansas for an eligible State deferred compensation plan as defined in Section 457 of the Federal Internal Revenue Code. This program is intended to be a voluntary supplement to the state employees' retirement and social security. Payments to the Plan are made through payroll deduction. Enrollment amounts can then either be increased or decreased by the employee at any time. Participation can also be stopped or restarted at any time.
Any amount received is reported as ordinary income in the year of receipt.
The participant may apply to the deferred compensation vendor to withdraw a part or all of the deferred compensation funds, provided they qualify in accordance with the above definition. Forms and instructions may be obtained from the contracted vendors. Although the plan is the same, the contracted vendors offer various investment options and pay out methods.