Deferred Compensation – 457(b) Plans

What is a 457(b) Plan?

A 457(b) plan is an employer-sponsored (not employer contributed), tax-favored retirement savings account. This type of plan is offered to state and local government employees, including police officers, firefighters, and other civil servants. You can think of the 457(b) plans as a 401(k) for government-workers. A 457(b) plan is a lot like a 401(k) or 403(b). These plans all offer individuals a great way to save for retirement, in addition to your CalPERS retirement pension plan.

A 457(b) plan is offered through an employer, and contributions are taken from your paycheck on a pre-tax or post-tax basis. All three of the 457(b) plans offer the traditional pre-tax option as well as the Roth post-tax option.

If you aren't sure to choose between a pre-tax or post-tax option, it is recommended that you consult a financial or tax advisor. You can make both pre-tax and post-tax contributions, but the annual limits take into consideration your total contributions.

The 2024 annual contribution limits are: 

Under age 50: $23,000

Age 50+: $30,500

3 Yr. Special Catch-Up: $46,000

You can learn more about each of the plans and find applicable forms below. Please reach out to Human Resources with any questions.

Why Should I participate?

You can start anytime
Your deferred comp plan will work for you whether you're approaching retirement or just getting started investing – putting away money in a tax-deferred account can offer several benefits.

Every little bit helps
Even investing a little bit of money can really add up over time – it's just important to get started! And if you continue to bump up contributions on a regular basis, the overall impact to your paycheck may not seem too painful. Consider putting raises or bonuses into deferred comp – it's an easy way to invest a little more.

Even though you are contributing to your retirement through CalPERS and may have contributed to Social Security in the past, in today’s economic outlook you will never regret having additional funds available for retirement.


Funds will be invested based on your age and years to retirement. More conservative as you get closer to retirement and more aggressive if you are just starting off in your career. You may also choose to select your own investments.


Options to select a Target Date where you simply choose the funds that are the closest to your target retirement date from a list of options or choose your own investments.


To get investment performance and links to fund profiles, and/or to enroll online, employees can go to our website at, check "enroll", enter your information and the City's plan number (305506).

couple saving for retirement
Close window