457(b) Deferred Compensation Plan

The Drexel University 457(b) Deferred Compensation Plan is a voluntary retirement savings plan for faculty and professional staff members whose salary exceeds $150,000 during a calendar year. The plan is intended as a nonqualified, deferred compensation plan to provide supplemental retirement savings. The 457(b) Plan is another way to save more for retirement if you already contribute the maximum amount allowed under the 403(b) Plan. However, you are not required to do so in order to participate.

Contributions to the 457(b) Plan are made on a pre-tax basis, which allows you to build your retirement savings while reducing your current taxable income. There is no post-tax (Roth) option or employer contributions.

The plan offers a wide range of investment options [PDF] available through TIAA. Once enrolled, you can view and manage your investments through the TIAA website, along with beneficiary assignment.

Unlike the 403(b) Plan, which is a qualified plan, the 457(b) Plan is a nonqualified deferred compensation arrangement. This means that the assets that are held pursuant to the 457(b) Plan will be subject to the claims of all unsecured creditors of the University if the University becomes bankrupt or insolvent.

For more information on the 457(b) Plan, review the resources below:

Am I eligible to participate?

When can I start making contributions?

How much can I contribute?

What is the special 457(b) catch-up contribution?

Does the University contribute to my 457(b) account?

How do I become vested in the plan?

Can I change my contribution amount?

When can I take money out of the plan?

Can I take a loan against this plan?

What is a hardship withdrawal?

What are the tax effects of a withdrawal or distribution from the plan?

Investment Options