Frequently Asked Questions
Voya® is a leading provider of deferred compensation and defined contribution plan education, administration and investment services to governmental plan sponsors and participants. We have provided services to government plans since 1972.
A 457(b) deferred compensation plan is a retirement plan that allows you to make contributions into an account established on your behalf. Your contributions are made on a pre-tax basis, and any earnings are tax-deferred. Taxes are due when money is distributed from the plan. The amounts accumulated on your behalf are distributed at retirement, or due to another qualifying event, such as severance from employment or death. For additional information regarding the City and County of Honolulu’s 457(b) Deferred Compensation Plan, including employees who are eligible to participate, please see the Plan Overview.
No. Contributions to the Deferred Compensation Plan have no effect on your Employee Retirement System pension or Social Security benefits. These benefits will be based on your total compensation, including amounts paid into the Deferred Compensation Plan.
In order to change your contribution amount, simply call our Honolulu Service Center. You can increase, decrease or suspend at anytime. Changes must be made in the month prior to the pay period for which the change is to be effective.
You are automatically 100% vested immediately upon joining the Plan.
You don’t. For Federal and Hawaii State income tax purposes, your W-2 form will show as taxable income only the amount of salary you actually receive. It will not report as gross (taxable) income any salary you defer to the City and County’s Plan as long as that amount is less than the IRS permitted maximum. Voya does not offer tax or legal advice. You should consult with a tax advisor and /or tax attorney concerning your personal situation before making a financial / investment decision.
Yes. The Plan permits you to rollover benefits from another employer-sponsored eligible retirement plan or traditional IRA. Note that amounts rolled into a governmental 457 plan from another plan type would be subject to the federal 10% premature penalty tax if distributed prior to age 59½ (unless an IRS exception applies).
Compare your options for differences in cost, benefits, charges and other important features before you rollover assets. You may want to consult your legal or tax advisors.
Distributions are allowed only upon the following “triggering events”: retirement, severance from employment, death, the occurrence of an unforeseeable emergency, or if your account does not exceed $5,000 and certain conditions are met.
Yes. If at a later date you decide your existing payment option may not be appropriate for your current situation, you may make a change. (Please note: an annuity payment option may not be revoked.)
A systematic withdrawal option, or SWO, is one of the forms of periodic payment options available for the distribution of your benefits. Under SWO, you elect whether to receive your benefits in a specified amount or over a stated period of time. Once your election is made, Voya will pay your installment payments automatically in the method you select. You may choose to receive benefits monthly, quarterly, semiannually or annually. While you are receiving your SWO payments, you are still able to direct the investment of amounts remaining in the Plan. You may change the amount and timing of your SWO payments, as long as you receive the minimum required distributions under the Plan. Please refer to the "Payment Options" section of this website for additional information on SWO.
At retirement or severance from employment, you are permitted to rollover your benefits to another employer-sponsored eligible retirement plan or traditional IRA.
All distributions are eligible for rollover except for:
- an unforeseeable emergency withdrawal;
- IRS minimum required distributions payable on or after you attain age 73; and
- periodic payments made over your life or a specified period of 10 years or more.
Amounts rolled from the Plan to another plan type would be subject to any applicable federal 10% premature penalty tax if distributed prior to age 59½ (unless an IRS exception applies).
Amounts awarded and paid to a former spouse as a result of a divorce will be taxable to that former spouse.
You will need to complete an “Employee’s Beneficiary Change Form” to change your beneficiary. This form is available by calling our Honolulu Service Center. The completed form must be returned to the Honolulu Service Center.
No. Loans are not available.
There is a toll-free number, (800) 584-6001, set up to make these transfers. You may also call our Honolulu Service Center at (808) 597-8213 . You can also make changes through this website by selecting Home tab of this site. A confirmation of activity will be generated and mailed to you within two days of any account transaction.
Statements are mailed quarterly, showing all transactions within your account for the quarter. This would include contributions and fund transfers.