Wisconsin Deferred Compensation

What is the Wisconsin Deferred Compensation Program?

The Wisconsin Deferred Compensation (WDC) program is a supplemental retirement savings program authorized under Section 457 of the Internal Revenue Code (IRC). Similar to the tax-sheltered annuity program, the WDC program differs in that it allows participants to begin receiving a distribution of their funds anytime after termination of employment or retirement without penalty. Participants in the TSA program must wait until age 59-1/2 to begin penalty-free distributions. This makes the WDC worth exploring for those employees considering early retirement. However, participants in WDC are offered limited investment options versus the TSA program. Please visit the Wisconsin Deferred Compensation program online as a guest or ETF for more detailed information regarding the WDC program.

Am I eligible to participate?

If you are a state or university employee in Wisconsin, or an employee of a local government or school district employer in Wisconsin that has elected to participate in the Wisconsin Deferred Compensation Program, you are eligible to enroll in the plan at any time.

How do I invest with WDC?

Creating an investment plan requires some time and research. If you have a financial planner, he or she may be able to lend you advice. If you are a new investor, you must look at your overall financial picture and investment goals. The WDC is only one part of your financial retirement, and there are many financial planning tools available to help you. Some of these additional resources are available by visiting Retirement and Investing Resources

How much can I contribute?

You may begin participating in the WDC with $20 monthly or $8 bi-weekly. Contributions to a TSA are subject to a maximum amount determined annually by the IRS. The Economic Growth and Tax Relief Reconciliation Act (EGTRRA) made several changes to maximum contribution amounts, causing the maximum amount to vary by year and individual circumstances.

Participant fees and reimbursements from investment providers provide funding for program administration. Program fees vary depending on the participant's balance, but range from $6 (for balances less than $5,000) to $120 (for balances $150,001 and more) annually

How do I enroll in the program?

1. To enroll by phone or have an enrollment kit and participation agreement mailed to you, contact the plan administrator's office at:

     Wisconsin Deferred Compensation Program
     325 Wall Street, Suite 2755
     Madison, Wisconsin 53718-7982
     Madison local: 608-241-6604
     Toll Free: 1-877-457-9327
     E-mail: WDC.MadisonOffice@gwrs.com
     TTY # for the hearing or speech impaired:
     1-800-766-4952