Four things before you begin...
Step #1 Learn More
If you have not gone through the Learn More section, we recommend you start there.
Step #2 Beneficiaries
Before you begin, you will need to know who will receive the money when you die. These people are called your beneficiaries. You can have Primary and Contingent (Back-Up) Beneficiaries. Primary Beneficiaries receive the money first. Should a Primary Beneficiary pre-decease you, then the money would be distributed to the Contingent Beneficiaries. If you do not name a beneficiary, the assets held in the plan will be distributed to your estate and allocated as per your will.
Retirement Collaborative strongly recommends naming Primary and Contingent Beneficiaries.
In order to complete the enrollment process, you will need to know the beneficiaries name, relationship to you, whether they are Primary or Contingent, and what percentage they will receive. It is not required, but it is advisable to include the beneficiaries date of birth, SSN, and contact information. If you do not have this additional information at the time of enrollment, you can add it in the future.
Step #3 Contribution Rate and Type
You will also need to determine how much you will contribute and what type of contribution you will use. The minimum contribution rate is $10 per pay. The maximum annual amount is periodically adjusted for inflation. There also also additional catch-up contribution available to participants age 50 and a special catch-up contribution available to participants close to retirement. For current information regarding maximum and catch-up contributions rates, read the Plan Summary in the Learn More Section.
If you are unsure how much to invest, we recommend that you go through the Investing Help process, after which Retirement Collaborative LLC will provide you with an estimated amount you could withdraw from your account in retirement given your chosen contribution rate and portfolio.
The Dauphin County, PA Deferred Compensation Plan offers two types of payroll contributions - Traditional Pre-Tax 457(b) Contributions and Roth After-Tax 457(b) Contributions. Participants may use either contribution type or both. The combination of the two must meet the minimum contribution amount of $10 per pay and may not exceed the maximum annual contribution limit.
It is important to understand the impact that your contribution type will have on your current and future tax rate. To learn more before enrolling, use the link below:
Step #4 Investments
The final step before enrolling is selecting which investment options you will use to create your retirement portfolio. Unlike the Dauphin County Pension Plan, you are responsible for selecting your retirement plan investments. The Plan has hired a registered investment advisor to help the Voluntary Employee Benefits Committee select and monitor the Plan Investment Options, as well as help participants select appropriate investment options for their deferred compensation plan account. If you would like assistance, select the button below:
The plan has added target date funds as default investment options should you not make an investment selection. They are designed to provide a diversified investment strategy based upon your retirement date. Simply select the fund that best matches your retirement date. Over time, as your retirement date approaches, the fund will change automatically to be more appropriate for one your target date. If you are unsure of what to select, these funds could be a good starting point, but we urge you to contact us if you have any questions. Depending upon your risk profile and how you will use this money in retirement, these funds might not be the best option.