A new Payroll Deduction form must be completed any time employees want to change the amount of or stop their deductions. Two periods of time are important under any annuity contract. During the accumulation period, contributions are made, deposited, and invested in options selected by employees to provide future retirement income. At this point, the amounts accumulated for employees can be used to provide income payments. During this annuity period, employees receive periodic retirement benefit payments.
Employees can choose from several different payment options.
At any time, employees may increase or decrease their contributions to the plan in while dollar amounts, within the legal limits. They may also stop, or restart their deferrals. If employees terminate employment before they are eligible to retire, the value of their deferred compensation account may be paid to them as specified in their Participant Agreement . Income taxes will become due for the tax year in which they receive the money. Retained funds will continue to participate in investment performance on a tax-favored basis.