About the Plan

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.

Eligibility

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

Withdrawals

You are eligible to withdraw savings from your MNDCP account at any age upon retirement, termination of employment, or disability. If you are still employed, you are eligible to withdraw your MNDCP savings anytime after age 59½. Upon your death your designated beneficiary(ies) can withdraw funds.

More Information

Review the MNDCP Enrollment brochure (pdf) to plan now for your financial future.

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Why Choose MNDCP?

  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.

 

 

  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.

 

  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.



 

 

  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 59½.