2018-2019 Fiscal Year Administrative Budget

April 1, 2018 – March 31, 2019

Description of the Plan

The New York State Deferred Compensation Plan (the “Plan”) is a defined contribution supplemental retirement savings plan sponsored by the State of New York. Section 457 of the Internal Revenue Code authorizes public employers to sponsor deferred compensation plans for their employees. Section 5 of the State Finance Law established the New York State Deferred Compensation Board (the “Board”) to administer a deferred compensation plan for the employees of the State of New York and to promulgate Rules and Regulations (the “Rules”) pertaining to the administration of all public employer-sponsored Section 457 deferred compensation plans in the State.

The Plan’s mission is to help State and local public employees achieve their retirement savings goals by providing high quality investment options, educational programs, and related services. The Board’s Rules permit all local governments to become a participating employer in the Plan. More than 1,750 local governments have opted to participate in the Plan. The Plan has approximately 228,500 participants whose accounts total approximately $23.0 billion in assets as of March 31, 2018.

Salary deferrals authorized by employees are deducted directly from their paycheck on a pre-tax or Roth basis and deposited in individual accounts. Earnings, dividends, and capital gains are tax deferred until the participant’s account is distributed to them when they separate from service. The Plan offers an array of mutual fund investment options, custom international funds, and a Stable Income Fund in which salary deferrals may be invested.

Participants may also roll over assets from a 401(k), 403(b), Individual Retirement Account, other 457 deferred compensation plans, and other qualified retirement plans to their Plan account to consolidate many of their retirement assets.

Staff employed by the Board are responsible for day-to-day administration of the Plan and oversight of the Plan’s service providers. The Plan has contracts with administrative service providers for specific services. The Board selects each of the Plan's service providers following a competitive request for proposals process that is conducted in accordance with the Board’s Rules. The administrative services for which the Board selects providers include the following:

  • An Administrative Service Agency that performs all record keeping functions, produces participant statements, employs local Account Executives, maintains the Plan's HELPLINE and Web site, and produces communications materials, including the Plan newsletter. The current provider is Nationwide® Retirement Solutions.
  • A Trustee/Custodian that holds the assets of the Plan in trust for the exclusive benefit of participants, processes transactions, benefit payments and related tax reporting, and accounts for the assets of the Plan. The current provider is State Street Bank & Trust.
  • An Auditor that performs annual audits of the Plan including the annual financial audit, an agreed-upon procedures report, and an audit of the administrative service agency's adherence to performance standards. The current provider is CliftonLarsonAllen LLP.
  • An Independent Investment Consultant that advises the Board regarding investment policy, monitors the performance of the Plan's investment providers, advises the Board on the selection of financial services providers and conducts searches for service providers through request for proposals processes. The current provider is Callan Associates Inc.
  • A Legal Counsel that provides legal services to the Board, including the preparation of amendments to the Plan, advice on regulatory matters, and the negotiation and preparation of contracts with professional services firms. The current provider is Shearman & Sterling LLP.

Plan Expenses

Service Provider Administrative Service Estimated Expense
Nationwide® Retirement Solutions Administrative Service Agency $ 8,671,900
State Street Bank & Trust Trustee/Custodian $ 600,000
Callan Associates Independent Investment Consultant $ 168,000
Shearman & Sterling LLP Legal Counsel $ 600,000
CliftonLarsonAllen Auditing Services $ 136,000
Non-Contractual Services
Board Administrative Expenses $ 660,000
Total Estimated Expenses $ 10,835,900


  • The contract with Nationwide® Retirement Solutions provides for a payment of $3.17 per participant per month ($38.00 annually). For participants who have elected to receive communications electronically, a payment of $2.96 per month ($35.50 annually) is used. The budgeted amount is based on an anticipated 228,500 participants in April 2018 and an increase of 500 participants per month.
  • The fees for individual trust and custody services are included in the Board’s contract with State Street Bank & Trust.
  • The estimated fee for Shearman & Sterling is an estimate based on historical experience.
  • The fees for Callan Associates and CliftonLarsonAllen are predetermined fees for specific services.

Plan Revenues

The Plan does not receive funding from the State or any participating employer to pay for administrative services. Revenues are provided through a combination of the following:

  • A $20 annual per-participant fee that is levied in $10 semi-annual installments in April and October.
  • An asset-based fee that is levied semi-annually at the same time as the per-participant fee. The asset based fee for the 2018-19 Fiscal Year is estimated to be 0.035%. The asset-based fee is levied against all assets in participant accounts where the balance is greater than $20,000. Assets in excess of $200,000 are exempt from the asset-based fee. The amount of revenue to be raised through the asset-based fee equals the Total Estimated Expenses less the per-participant fee revenue, the interest earned on the Plan’s custodial accounts, and any revenue amounts carried over from the prior fiscal year. The result is divided by the estimated total Plan assets subject to the asset-based fee to determine the asset-based fee percentage.
  • Interest earned on the Plan's custodial accounts.
Revenue Source Estimated Revenue
Semi-Annual Per-Participant Fee – April 2018 $ 2,285,000
Semi-Annual Per-Participant Fee – October 2018 $ 2,315,000
Asset-Based Fee – April 2018 (0.02%) $ 2,880,193
Asset-Based Fee – October 2018 (0.02%) $ 2,880,192
Interest on Custodial Accounts $ 260,000
Carry Over Balance from FY 2016-17 $ 215,565

Total Anticipated Revenue $ 10,835,950


  • The April 2018 semi-annual Per-Participant revenue ($10 per participant) is based on an estimated 228,500 participants.
  • The October 2018 semi-annual Per-Participant Fee ($10 per participant) is based on an estimated 231,500 participants.
  • The April 2018 Asset-Based Fee (0.0175%) is based on the total Plan assets subject to the fee ($16,458,242,131) as of January 2018.
  • The October 2018 Asset-Based Fee (0.0175%) is based on the total Plan assets subject to the fee ($16,458,242,131) as of January 2018. The Board may adjust the October 2018 Asset-Based Fee based on changes in total Plan assets subject to the fee as of August 31, 2018.
  • It is estimated that $215,565 will be carried over from FY 2017-2018 and will offset the revenues needed from the Asset-Based Fee.
  • The budget anticipates that revenues will exceed expenses by $50.
Modal Dialog Start Close

You are going to a page that is not part of this website

We make no endorsement of its content or guarantee of its accuracy. If the Continue button does not work, the page may have been moved or removed.

Please consider logging out of your account before you proceed.

Modal Dialog End