Montana Single Audit Report, Financial-Compliance Audit for the Two Fiscal Years Ended .. 2002

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DEFERRED COMPENSATION PLAN The administration of the State of Montana Deferred Compensation Program was transferred to the PERB effective July 1, 1999. The Deferred Compensation plan is a voluntary, tax-deferred retirement plan designed to supplement State Service Retirement, Social Security and other retirement plans and savings. The State of Montana has offered this plan since 1976. Internal Revenue Service Code (Section 457) and MCA (Title 19, chapter 50) govern the plan.
Assets of the defer
...red compensation plan are required to be held in trusts, custodial accounts or insurance company contracts for the exclusive benefit of participants and their beneficianes.
All employees of the State, including the Montana University System and contracted employees, are eligible to participate. The compensation deferred is not available to employees until separation from State service, retirement, death, or upon an unforeseeable emergency, when still employed and meeting IRS specified criteria. Participating Page B-48 employees are able to direct their deferrals into two primary investment options; (1) a "fixed" or stable value option which guarantees both principal (the payroll deferrals) and a quarterly rate of earnings; and (2) a "variable" option which currently consists of twenty-three mutual funds, and five lifestyle/profile funds.


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