Minnesota Deferred Compensation Plan Overview

The Minnesota Deferred Compensation Plan (MNDCP) is a voluntary savings plan intended for long-term investing for retirement. Authorized under Section 457 of the Internal Revenue Code, the MNDCP is a smart and easy way to supplement retirement income from your Minnesota public pension and Social Security benefits.

Available to any full-time, part-time, or temporary Minnesota public employee (state, city, county, township, school districts, etc.), the MNDCP allows you to build retirement savings through automatic payroll deductions--you control how your money is invested.

You are eligible to withdraw savings from your MNDCP account upon retirement, termination of employment or disability. Upon your death, your designated beneficiary(ies) can withdraw funds.

For more information, see the Plan Now Brochure.


Why choose MNDCP?

  • No IRS Early Withdrawal Tax Penalty - One advantage the MNDCP has over other types of plans (i.e., 401(k), 403(b), 401(a), or IRA's) is that your withdrawals are not subject to the IRS 10% tax penalty usually assessed on withdrawals made before age 59 ½ .

  • Low fees — Take advantage of the competitive fees that result from MNDCP's economies of scale. This allows more of your money the potential for growth.  

  • No commissions or sales charges – The administrators of MNDCP are public employees, just like you, and receive no financial incentives for increased participation.

  • Low minimum contributions — Contribute as little as $10 each paycheck.

  • Matching contributions – Some employers or bargaining units match a portion of your contributions. Ask your employer if they offer matching contributions.

  • It's your money — All account assets are held in trust for your exclusive benefit. Your account assets are never subject to the claims of creditors in the event of the State or public employer's bankruptcy.