Want to boost your retirement-savings strategy? If you’re a Level 9 employee or above, the Deferred Compensation Plan (DCP) is another great way — along with the 401(k) plan — to save money for your future.
- Elect to defer part of your eligible compensation to a subsequent year, which reduces your immediate tax liability.*
- Lower your adjusted gross income by deferring up to 75% of your base pay for a calendar year and up to 100% (or a specific dollar amount) of your performance-based incentive bonus (short-term incentive bonus, or STI).
- CSL may make additional contributions to your account.
- Save tax-deferred money beyond annual 401(k) contribution limits.
- Build even more savings by directing the funds in your account into one of several investment options.
- You’re always 100% vested in your account balance.
* CSL does not provide financial advice and is not a tax advisor. Please consult your financial advisor or tax planner on what’s best for your personal situation.
Watch the "Understanding Your Deferred Compensation Plan" video.
How to Enroll
You can enroll in the DCP only during the annual enrollment window, which occurs every fall. If you’re already enrolled in the DCP, you must reenroll — elections do not carry over from year to year. Visit Fidelity during the enrollment window to enroll or reenroll in the DCP.
Enrolling When You’re Initially Eligible
When you first become eligible to participate in the DCP, you must make your elections during the designated enrollment period (within 30 days of the date you first became eligible to participate).
You may allocate your DCP balance across a diversified menu of investment options, which are closely aligned with investments available in the 401(k) plan. You may update your DCP investment choices at any time.
Your Payment Options
You can receive a distribution from the DCP either when you leave CSL or at a specified date that’s at least four years after the first day of the plan year in which you made your election.
When you enroll in the plan, you must make your distribution elections, which establish when and how you’ll receive your plan distributions. For example, if you elected in 2023 to defer amounts earned in 2024, you may elect to receive these amounts either when you leave CSL or upon a specific date that is not before January 1, 2028.
You must also elect how you’d like to receive your payments — in the form of a lump sum or annual installments. You’ll receive a lump-sum payment if you meet either of the following criteria:
- You leave CSL prior to retirement (age 55, with 60 months of service) or your specified in-service withdrawal date.
- Your account balance is less than $50,000 at the time you leave CSL.
Payment will be delayed for seven to eight months from the time you leave CSL if you’re in Level 9 or above, a key employee and in IPE Class 55 or above.
If you pass away, your entire account balance will be distributed to your beneficiary(ies) as a lump-sum payment.
Keep in Mind
You need to make your deferral elections before the year in which your base pay is earned or the performance period for which your bonus is paid. You must make a new election for each year you wish to defer your base pay or bonus during the annual enrollment window.