Deferred Compensation
Put this benefit to work for you
What is Kentucky Deferred Compensation?
Kentucky Deferred Compensation (KDC) is a tax-deferred retirement savings plan offered to all state employees, public school employees, university employees, and employees of local political subdivisions that have elected to participate.
Why participate?
Chances are Social Security benefits, plus your state and other system retirement, will not provide enough income to maintain your current standard of living. By contributing to a supplemental retirement plan, you consistently save with the goal of having additional income at retirement. KDC helps bridge the gap between what you'll collect from your pension and what you need for retirement.
Easy contributing — Contribute as little as $30 per month or $15 per pay.
Convenient — Contributions are automatically deducted from your paycheck.
Tax advantages — No federal or state income taxes on pre-tax contributions and earnings until the money is paid to you.
Low cost — As a KY State Government program, there is no profit incentive, and savings are passed on to participants.
Accessible — Manage your account online anytime, day or night.
Personal service — Local Retirement Specialists are available across the Commonwealth.
Easy enrollment — Only one form and a few minutes to begin. Anniversary Kentucky's official supplemental retirement plan
 Help me do it1 |  Do it myself |  Do it for me2 |
|---|---|---|
| Target Date Retirement Funds from Vanguard | Your own strategy | Nationwide ProAccount\textregistered |
| Invest in the fund that's closest to the year in which you expect to retire or take a distribution.The fund is managed, automatically rebalanced, and designed to become gradually more conservative as the selected date approaches. | Define your investment goals and strategy.Select funds from KDC's Investment Guide.Use the My Investment Planner SM tool for free investment recommendations that are right for you.2Opt for automatic rebalancing to keep investments in line with your goals.Spend the time and energy to manage your own investments. | Professional investment managers select funds from KDC's lineup based on your age, risk tolerance, and investment goals.These managers actively manage your account according to the information you provide.Wilshire, a leading provider of investment products and services, actively manages your account, including periodic rebalancing according to the information you provide.Pay for this service through an additional asset management fee deducted from your account balance each quarter |
Employees can enroll anytime. Let us help. Call 800-542-2667 or 502-573-7925 or find us online at kentuckydcp.ky.gov.
1 The Vanguard Target Retirement Funds Invest in a wide variety of underlying funds to help reduce investment risk. Their expense ratio represents a weighted average of the expense ratios and any fees charged by the underlying mutual funds in which the Vanguard Target Retirement Funds invest. The Vanguard Target Retirement Funds do not change any expenses or fees of their own. Like other funds, Vanguard Target Retirement Funds are subject to market risk and loss. Loss of principle can occur at any time, including before, at or after the target date. There is no guarantee that target date funds will provide enough income for retirement.
2 Investment advice for Nationalwide ProAccount is provided to plan participants by Nationwide Investment Advisors LLC (NIA), an SEC-registered investment advisory. NIA has retained Wilshire Associates as the Independent Financial Expert for Nationwide ProAccount. Wilshire Associates is not an affiliate of NIA or KDC. Nationwide Investment Advisor LLC (NIA) is not affiliated with Wilshire Associates or KDC.
Investing involves market risk, including possible loss of principal. No investment strategy or program can guarantee a profit or avoid loss. Actual results will vary depending on your investment and market experience.
KDC Retirement Specialists are Registered Representatives of Nationwide Investment Services Corporation (NISC), member FINRA. Nationwide representatives cannot offer investment, tax, or legal advice. You should consult your own counsel before making retirement plan decisions. NRM-17372KY-KY (08/19)