We Rep-Percent Savings
National Retirement Security Week
National Retirement Security Week encourages American workers to take control of their retirement savings future. This year, to celebrate this congressionally sponsored event, the Plan is touting the advantages of percent-of-pay contributions with the We Rep-Percent Savings campaign. The We Rep-Percent Savings movement encourages state employees to enroll in the deferred compensation plan, first and foremost, and then contribute a percent of pay to their retirement accounts instead of flat dollar amounts. Currently, 70% of state employees save with the deferred compensation plan, but only 28% of those employees are using percent-of-pay contributions. Change your contribution type today and join the savings movement.
What are percent-of-pay contributions?
Just like the name suggests, percent-of-pay contributions are a retirement savings amount based on a percentage of your pay. For instance, if you earn $1,000 each paycheck and contribute 2.5% of your pay to the deferred compensation plan, that’s the same as saving $25 with each check.
EXAMPLE:
Current Monthly Paycheck: $1,000
Percent-of-Pay Contribution: 2.5%
Amount Saved Each Paycheck: $25
Why are percent-of-pay contributions so important?
Percent-of-pay contributions are important because when your salary changes — because of a raise or promotion, for instance — then your contributions to your retirement account will change too. Percent-of-pay contributions are an automatic way to maintain your savings strategy as your career evolves.
How do you make percent-of-pay contributions?
- Log on to your account through the ESS portal or by visiting www.modeferredcomp.org.
- Navigate to the Contributions page
- Click the blue, “Change My Contribution Amount” button
- Type in your contribution percentage and then choose the “Percent” radio button
- Click the “Next” button and follow the prompts