The New York City Deferred Compensation Plan is a program through which New York City employees can save money for retirement by choosing to contribute to 457 or 401(k) accounts, or to both, states the NYC Office of Labor Relations. City employees who participate in the program can make contributions to their savings plans through regular contributions from their pay, or they can make accelerated payments to 457 plans if they are nearing retirement age.
The New York City Deferred Compensation Plan offers free financial planning seminars, online access to accounts, telephone and in-person customer service, newsletters, and individual financial counseling, states the NYC Office of Labor Relations. Because the plan is self-administered and paid for by members' fees, there are no sales charges or commissions on contributions, though members do pay quarterly fees and administrative fees for participation.
Members can choose to invest the money they contribute through their 457 or 401(k) New York City Deferred Compensation Plan accounts in pre-arranged portfolios or by creating their own portfolios by selecting from core investment funds, according to the NYC Office of Labor Relations. Those who choose 457 plans can make additional contributions they cannot make to their 401(k) plans, to compensate for years in which they were eligible to participate in savings but chose not to, notes Investopedia.