2019 Increase to Maximum Payroll Deduction

  • The 2019 contribution limits were just updated, and the 457(b) contribution limit increased from $18,500 in 2018 to $19,000 in 2019.

  • There is no change to the 50 and older catch-up contribution, which remains at $6,000. If you are 50 years or older in 2019, you will be able to contribute a maximum amount of $25,000 in 2019.

  • The Special 457(b) Catch-Up Contribution will increase to $38,000 in 2019.

If you would like to max out your payroll contribution, don’t forget you must add Dauphin County’s employer contribution of $4 per year. Also, when you submit your payroll deduction change, it will take place the first pay of the following month. To have your payroll deduction updated for January, you must submit your payroll deduction change by the end of December 2018.

Payroll deduction changes can be made on the Alerus participant website or by contacting HR. If you have questions regarding your account or payroll deductions, please Contact Us.

Update to Loan Interest Rate

PLAN LOAN INTEREST RATE INCREASES FROM 6.25% TO 6.50%

The Dauphin County, PA Deferred Compensation Plan offers participants the opportunity to take loans against their account value.  So that you do not fall behind with your retirement income goals, you are required to pay interest on the loan.  The plan's loan interest rate is 1% plus the prime interest rate. The key point is that you are paying yourself the interest.  Essentially, you are acting as your own bank.  Below is more information on how the loan interest rate is calculated and the plan's loan provisions. Changes to the loan interest rates only affect new loans.

THE PRIME INTEREST RATE

You might have heard that the Federal Reserve Bank (Fed) recently raised its Federal Funds Target Rate (Target Rate) again.  The Target Rate is the suggested range of interest which one bank may charge another for overnight lending. In December, the Fed raised its Target Rate by 0.25%.  The Fed does not set the prime interest rate. However, once the Fed establishes the Target Rate, then U.S. banks take action to set the rate for their best or "prime" customers. Generally, a bank's prime rate is linked to the Target Rate and moves in lockstep with it. Each U.S. bank can determine its own "prime" rate that it offers customers. However, there is no central authority which sets "prime."

The loan interest rate is based upon the prime interest rate.  The Wall Street Journal (WSJ) publishes the prime rate, which is determined by surveying the thirty largest banks in order to come up with a consensus amount.  The WSJ reports changes to the prime rate when the surveyed banks have adopted a new rate, which occurred when the Fed raised its Target Rate in September when it moved from 5.25% to 5.50%.

PLAN LOAN PROVISIONS

Any active employee may borrow money from his/her account for any reasonable purpose. Provisions of the loan program are as follows:

  • You may borrow up to half of your total vested account balance for any purpose, with a minimum loan of $1,000 and a maximum loan of $50,000.

  • The maximum number of loans a participant may leave outstanding at any time is two.

  • You may choose a repayment schedule of up to five years, except if the loan is used to acquire your principal residence (up to 15 years). All loans will be paid back through payroll deduction.

  • The interest rate charged on your loan will be 1% above the prime interest rate. All interest that you pay on your loan is credited to your account.

  • A one-time, non-refundable fee of $75 plus a $25 per year administrative fee will be deducted from your loan proceeds.

  • It may take three to four weeks to process your loan application, so plan accordingly.

If you have questions regarding the plan loan provisions, Contact Us.

Update to Loan Interest Rate

PLAN LOAN INTEREST RATE INCREASES FROM 5.75% TO 6.00%

The Dauphin County, PA Deferred Compensation Plan offers participants the opportunity to take loans against their account value.  So that you do not fall behind with your retirement income goals, you are required to pay interest on the loan.  The plan's loan interest rate is 1%+ the prime interest rate. The key point is that you are paying yourself the interest.  Essentially, you are acting as your own bank.  Below is more information on how the loan interest rate is calculated and the plan's loan provisions.

THE PRIME INTEREST RATE

You might have heard that the Federal Reserve Bank (Fed) recently raised its Federal Funds Target Rate (Target Rate) again.  The Target Rate is the suggested range of interest which one bank may charge another for overnight lending. In September, the Fed raised its Target Rate by 0.25%.  The Fed does not set the prime interest rate. However, once the Fed establishes the Target Rate, then U.S. banks take action to set the rate for their best or "prime" customers. Generally, a bank's prime rate is linked to the Target Rate and moves in lockstep with it. Each U.S. bank can determine its own "prime" rate that it offers customers. However, there is no central authority which sets "prime."

The loan interest rate is based upon the prime interest rate.  The Wall Street Journal (WSJ) publishes the prime rate, which is determined by surveying the thirty largest banks in order to come up with a consensus amount.  The WSJ reports changes to the prime rate when the surveyed banks have adopted a new rate, which occurred when the Fed raised its Target Rate in September when it moved from 5.00% to 5.25%.

PLAN LOAN PROVISIONS

Any active employee may borrow money from his/her account for any reasonable purpose. Provisions of the loan program are as follows:

  • You may borrow up to half of your total vested account balance for any purpose, with a minimum loan of $1,000 and a maximum loan of $50,000.

  • The maximum number of loans a participant may leave outstanding at any time is two.

  • You may choose a repayment schedule of up to five years, except if the loan is used to acquire your principal residence (up to 15 years). All loans will be paid back through payroll deduction.

  • The interest rate charged on your loan will be 1% above the prime interest rate. All interest that you pay on your loan is credited to your account.

  • A one-time, non-refundable fee of $75 plus a $25 per year administrative fee will be deducted from your loan proceeds.

  • It may take three to four weeks to process your loan application, so plan accordingly.

If you have questions regarding the plan loan provisions, Contact Us.

Update to Loan Interest Rate

PLAN LOAN INTEREST RATE INCREASES FROM 6.00% TO 6.25%

The Dauphin County, PA Deferred Compensation Plan offers participants the opportunity to take loans against their account value.  So that you do not fall behind with your retirement income goals, you are required to pay interest on the loan.  The plan's loan interest rate is 1%+ the prime interest rate. The key point is that you are paying yourself the interest.  Essentially, you are acting as your own bank.  Below is more information on how the loan interest rate is calculated and the plan's loan provisions.

THE PRIME INTEREST RATE

You might have heard that the Federal Reserve Bank (Fed) raised its Federal Funds Target Rate (Target Rate) recently.  The Target Rate is the suggested range of interest which one bank may charge another for overnight lending. In June, the Fed set the range at 1.75% to 2.00%. This is an increase of 0.25% over the prior Target Rate.  The Fed does not set the prime interest rate. However, once the Fed establishes the Target Rate, then U.S. banks take action to set the rate for their best or "prime" customers. Generally, a bank's prime rate is linked to the Target Rate and moves in lockstep with it. Each U.S. bank can determine its own "prime" rate that it offers customers. However, there is no central authority which sets "prime."

The loan interest rate is based upon the prime interest rate.  The Wall Street Journal (WSJ) publishes the prime rate, which is determined by surveying the thirty largest banks in order to come up with a consensus amount.  The WSJ reports changes to the prime rate when the surveyed banks have adopted a new rate, which occurred when the Fed raised its Target Rate in December.

PLAN LOAN PROVISIONS

Any active employee may borrow money from his/her account for any reasonable purpose. Provisions of the loan program are as follows:

  • You may borrow up to half of your total vested account balance for any purpose, with a minimum loan of $1,000 and a maximum loan of $50,000.

  • The maximum number of loans a participant may leave outstanding at any time is two.

  • You may choose a repayment schedule of up to five years, except if the loan is used to acquire your principal residence (up to 15 years). All loans will be paid back through payroll deduction.

  • The interest rate charged on your loan will be 1% above the prime interest rate. All interest that you pay on your loan is credited to your account.

  • A one-time, non-refundable fee of $75 plus a $25 per year administrative fee will be deducted from your loan proceeds.

  • It may take three to four weeks to process your loan application, so plan accordingly.

If you have questions regarding the plan loan provisions, Contact Us.

Changes to the U.S. Real Estate Investment Option

As part of the Dauphin County, PA Deferred Compensation Plan’s ongoing due diligence process, the investment options in your retirement plan are monitored over time. The objective of this monitoring is to offer investment choices with strong performance relative to peers, low volatility, and consistent style.  Based upon this due diligence process, the Plan will remove its U.S. Real Estate Investment Option, which had not been meeting its monitoring requirements, and replace it with a fund that is meeting the monitoring requirements.  The DC Conservative, Conservative Growth, Moderate Growth, Growth and Aggressive Growth Models will also be updated to the allocations on page two, which include the newly added U.S. Real Estate Investment Option.  You can use the link below to read the Plan memo that was distributed with the 05/11/2018 paychecks.  If you have any questions, Contact Us.

Westcore Plus Bond Fund Name Change

Later this month, it is anticipated that Segall Bryant & Hamill LLC purchase of Denver Investments (Westcore Funds) will be finalized.  Once finalized, the Westcore Plus Bond Fund Retail Class's name will change to the Segall Bryant & Hamill Plus Bond Fund Retail Class.  Fortunately, the management team will stay the same, so we do not anticipate any changes to their bond investment strategy.  The fund's ticker symbol (WTIBX) will also stay the same.

If you have any questions regarding the name change, your account, or retirement planning; please contact us.

 

Update to Loan Interest Rate

PLAN LOAN INTEREST RATE INCREASES FROM 5.50% TO 5.75%

The Dauphin County, PA Deferred Compensation Plan offers participants the opportunity to take loans against their account value.  So that you do not fall behind with your retirement income goals, you are required to pay interest on the loan.  The plan's loan interest rate is 1%+ the prime interest rate. The key point is that you are paying yourself the interest.  Essentially, you are acting as your own bank.  Below is more information on how the loan interest rate is calculated and the plan's loan provisions.

THE PRIME INTEREST RATE

You might have heard that the Federal Reserve Bank (Fed) raised its Federal Funds Target Rate (Target Rate) recently.  The Target Rate is the suggested range of interest which one bank may charge another for overnight lending. In March, the Fed set the range at 1.50% to 1.75%. This is an increase of 0.25% over the prior Target Rate.  The Fed does not set the prime interest rate. However, once the Fed establishes the Target Rate, then U.S. banks take action to set the rate for their best or "prime" customers. Generally, a bank's prime rate is linked to the Target Rate and moves in lockstep with it. Each U.S. bank can determine its own "prime" rate that it offers customers. However, there is no central authority which sets "prime."

The loan interest rate is based upon the prime interest rate.  The Wall Street Journal (WSJ) publishes the prime rate, which is determined by surveying the thirty largest banks in order to come up with a consensus amount.  The WSJ reports changes to the prime rate when the surveyed banks have adopted a new rate, which occurred when the Fed raised its Target Rate in December.

PLAN LOAN PROVISIONS

Any active employee may borrow money from his/her account for any reasonable purpose. Provisions of the loan program are as follows:

  • You may borrow up to half of your total vested account balance for any purpose, with a minimum loan of $1,000 and a maximum loan of $50,000.
  • The maximum number of loans a participant may leave outstanding at any time is two.
  • You may choose a repayment schedule of up to five years, except if the loan is used to acquire your principal residence (up to 15 years). All loans will be paid back through payroll deduction.
  • The interest rate charged on your loan will be 1% above the prime interest rate. All interest that you pay on your loan is credited to your account.
  • A one-time, non-refundable fee of $75 plus a $25 per year administrative fee will be deducted from your loan proceeds.
  • It may take three to four weeks to process your loan application, so plan accordingly.

If you have questions regarding the plan loan provisions, Contact Us.

This site is intended for the employees of Dauphin County.  It contains information on the Dauphin County, PA Deferred Compensation Plan, educational material, and investment and financial planning resources provided by Retirement Collaborative LLC.  In order to access the website content, please log in.  If you would like to access the Plan's participant website, select Access Account.  On the Plan's Participant Website, you will be able to view and make changes to your account.  If you have questions, please contact Retirement Collaborative LLC at 717-545-1447.

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