» Overview

A deferred compensation program is the voluntary option of an employee to have payroll deductions made from their paycheck. The employee needs to authorize the deductions in writing. These monies are then placed in an individual account and are used to augment the retirement plan of the individual by investing this additional money into shares in mutual funds or other managed investments, or annuity contracts from an insurance company, all selected by the Board of Trustees of the Government of Guam Retirement Fund. A combination of these types of investments may be selected.

The 457 Plan is designed to ensure that an employee has the opportunity to have up to $11,000 of the employees actual salary placed in investments for retirement, at the employees option, in addition to the mandatory standard retirement plan for employees.

Many employees may not take the time or trouble to invest their personal funds to their retirement benefit, and this program makes retirement investments user friendly, in conjunction with the normal retirement plan.

» Eligibility Requirements

All current Government of Guam employees are eligible to participate in the Plan.

The Plan does not allow participation by employees who are:

• Employees paid by commissions only.
• Leased employees.
• Persons compensated on a fee basis.
• Independent Contractors.
• Persons employed in Senior Citizens Community Employment Program.

Any member contributing to the Defined Benefit Plan or Defined Contribution Retirement System may voluntarily contribute to the 457 Plan.

Other requirements may also have to be met, as described in the Summary Plan Description.

» Enrollment

Eligible employees may join at any time.