MetroMax 457 Deferred Compensation Plan

To help you achieve your financial and retirement goals, Metro Nashville & Davidson County sponsors a 457 Deferred Compensation Plan (called "MetroMax").  MetroMax is available to any employee, officer, or elected or appointed official of Metro with at least 20 hours of work per week, with the exception of contract workers for the Metropolitan Board of Education, the Transit Authority, Nashville Electric Service, and the Metropolitan Development and Housing Authority.

Voya Financial®, Inc. has developed this custom website to provide you with easy access to information about MetroMax, account access, and the ability to make account transactions. It will also provide you with comprehensive plan information, and educational materials for investment and retirement planning.

Learn about the benefits of the Plan and how to contact your local office.

Please contact us if you have any questions.  Retirement Readiness Service Center (call center) representatives and an automated voice response line are available at the toll-free telephone number: (800) 584-6001.  Representatives are available Monday – Friday from 7:00 a.m. to 8:00 p.m. Central Time.

Investing for retirement requires a good plan and the discipline to follow it.  The financial choices you make today can determine the quality of your retirement tomorrow. Smart retirement planning requires accurate information available to you when you need it.

This website is only one of the methods for you to receive information about MetroMax or, to receive information on your account. Other services available include:

  • 1-on-1 meetings on topics including enrollment, investment principles and distribution planning.
  • Group meetings and seminars led by licensed Voya® representatives.
  • Investment education tailored to individual learning needs.
  • Toll-free access to a customer information center and 24 hour automated Voice Response System (VRS).
  • Timely and comprehensive account statements.
  • Informative quarterly newsletters.
  • Dedicated Voya representatives located in downtown Nashville.

Overview

MetroMax’s Deferred Compensation Plan is established under Internal Revenue Code (IRC) Section 457. With a deferred compensation plan, you postpone receiving (defer) a portion of your salary. It works like this:

  • You decide, within certain legal limits, how much of your income you want to defer.
  • Metro will reduce your paycheck before income tax by that amount and forward it to Voya on a regular basis.
  • Contributions are invested in the investment options you have selected.
  • The contributions and any earnings that accumulate are not taxed until you receive them. This is usually at retirement when you may be in a lower tax bracket.

Eligibility

Any employee, officer, or elected or appointed official of Metro with at least 20 hours of work per week, with the exception of contract workers for the Metropolitan Board of Education, the Transit Authority, Nashville Electric Service, and the Metropolitan Development and Housing Authority is eligible to participate in MetroMax. A minimum annual contribution of $240 is required under the Plan.

Contributions

Contributions under the Plan are voluntarily made by participants through a reduction in salary. Under the Plan, annual contributions are limited to 100% of includible compensation*, or the amount shown below. 

Contribution Limits
Year Annual Maximum
2017 $18,000 regular limit
$24,000 Over 50 Catch-up Limit ($6,000 over the regular limit)
$36,000 Normal Retirement Age catch-up limit (Double the regular limit)

*Refers to compensation received for services performed for Metro Nashville & Davidson County that is includible in gross income for that year.  Includible compensation excludes:

  • 414(h) pick-up contributions

Includible compensation includes:

  • Deferrals to a 457(b), 403(b), 401(k) or SEP plan.
  • Pre-tax contributions to a section 125 cafeteria plan.
  • Pre-tax contributions with respect to Section 132(f)(4) – Qualified Transportation Fringe Benefits.

A higher limit may be available during the three consecutive years prior to attaining Normal Retirement Age (NRA) under the 457(b) Special Catch-up Option.  A higher limit may be available to participants of 50 years of age or greater using the Age 50+ Catch-up Option.  A participant cannot use both the 457(b) Special Catch-up Provision and the Age 50+ Catch-up Provision during the same year.  The Participant must choose whichever is greater. For additional information on the catch-up provisions, please click here.

Distributions

When can I receive a distribution under the Plan?
 

Distributions are allowed only upon:

  • Separation from service (or retirement);
  • Attainment of age 70½;
  • Death; or
  • An unforeseeable emergency.

Unforeseeable Emergency Withdrawals: IRC Section 457(b) defines an unforeseeable emergency as a severe financial hardship to the participant or the participant’s beneficiary (collectively referred to as the “account holder”) resulting from:

  • An illness or accident involving you, your beneficiary, the spouse of you or your beneficiary or a dependent (as defined by the Internal Revenue Service (IRS)) of you or your beneficiary;
  • The loss of your or your beneficiary’s property due to casualty (including the need to rebuild a home following damage to a home not otherwise covered by homeowner’s insurance, such as a result of a natural disaster); or
  • Other similar extraordinary and unforeseeable circumstances arising as a result of events beyond your or your beneficiary’s control.

 

Even if the account holder meets the above requirements, this does not mean that he/she will be able to withdraw funds from the Plan. Withdrawals are permitted only to the extent the hardship cannot be relieved:

  1. through reimbursement or compensation by insurance or otherwise;
  2. by liquidating your assets (to the extent this would not itself cause severe financial hardship); or
  3. by stopping deferrals under the Plan. Also, participants will not be allowed request an unforeseeable emergency once a distribution has begun. Situations that may constitute unforeseeable circumstances include:
  • The imminent foreclosure of or eviction from the participant’s or beneficiary’s primary residence.
  • The need to pay for medical expenses, including non-refundable deductibles, as well as the cost of prescription drug medication.
  • The need to pay for the funeral expenses of a spouse or dependent (as defined by the IRS).

Only the amount reasonably necessary to meet the emergency need is available for withdrawal.

What are the options for payment of my benefits under the Plan?
MetroMax provides you with a wide variety of payout options.  They include:

  • Systematic withdrawal of your account over a specified period or of a specified amount.
  • Deferral of all or a portion of your benefits to a later date.
  • Lump sum, or partial lump sum distribution in combination with other options.
  • Distribution over your lifetime and the lifetime of your designated beneficiary.
  • Distribution over a set period not extending beyond your life expectancy.
  • Distribution over a set period of time not extending beyond the joint and last survivor life expectancy of both you and your designated beneficiary.
  • Distribution over your lifetime.

The plan permits the transfer of your 457 benefits to another 457 deferred compensation plan that accepts such transfers.  You are also permitted to roll over your benefits into another eligible retirement plan or a traditional IRA (an eligible retirement plan is a 401 qualified plan, a 403(b) tax deferred annuity program, or another governmental 457(b) deferred compensation plan).

When am I required to begin receiving distributions?
The IRS requires that distributions under a 457 plan begin no later than the April 1st of the calendar year following the calendar year in which you attain age 70½ or separate from service, whichever occurs later.

When am I subject to taxation?
Amounts distributed directly to you from the plan will only be taxable to you when actually paid, will be reported on IRS Form 1099R, and will be subject to 20% federal tax withholding (to the extent that the distribution is rollover eligible).  Governmental 457 plan benefits are not subject to the IRS 10% premature penalty tax, even if distributed prior to your attaining age 59 ½.  Rollover amounts from a non 457(b) plan will be subject to a 10% premature penalty tax, unless an IRS exception applies.

Payout Options

When you are eligible to receive a distribution under the plan, MetroMax provides you with a wide variety of payout options.  Please call our Retirement Readiness Service Center (call center) at (800) 584-6001 for additional information on distributions or to request distribution paperwork.  These payout options include:

Systematic withdrawal of your account over a specified period or of a specified amount

  • Specified Period- not less than three (3) years and no more than 30 years.
  • Specified Amount - minimum payment amount is $250.
  • Once payments begin, you can continue to make investment changes on the balance remaining in your account.
  • Payments can be monthly, quarterly, semi-annually or annually.

Deferral of all or a portion of your benefits to a later date

  • The latest date to which you can defer payments is the April 1st of the year following the year you reach age 70 ½, or April 1st of the year following the year you retire, whichever is later.
  • If you defer a payout at the time you separate from service or retire, you may make one additional election to further defer the payment of your benefits, as long as it does not go beyond the dates described above.  This second election allows you to postpone your payments to a later date, but not to accelerate them to an earlier date.

Lump sum, or partial lump sum distribution in combination with other options

  • Take all or a portion of your account balance in cash.

Distribution over your lifetime and the lifetime of your designated beneficiary - Joint and Survivor Annuity

  • Guaranteed payments for the lives of the participant and a designated beneficiary.

Transfer to Another 457 Plan

  • Under the 457 plan, you are also permitted to transfer your 457 benefits to another 457 deferred compensation plan that accepts such transfers.

Distribution over a set period not extending beyond your life expectancy - Life Annuity with Period Certain

  • Guaranteed payments for participant’s lifetime. Guarantee is based on the claims’ paying ability of Voya Retirement Insurance and Annuity Company (“VRIAC”).
  • Minimum guarantee period (five (5) to 20 years).

Distribution over a set period of time not extending beyond the joint and last survivor life expectancy of both you and your designated beneficiary - Joint and Survivor Annuity with Period Certain

  • Guaranteed payment for the lives of the participant and a designated beneficiary.
  • Minimum guarantee period (five (5) to 20 years).

Distribution over your lifetime - Life Annuity

  • Payments guaranteed for participant’s life only.  Upon the participant’s death, no payments are made to a beneficiary.

You should consider the investment objectives, risks, and charges and expenses of the mutual funds offered through a retirement plan, carefully before investing. The fund prospectuses and information booklet containing this and other information can be obtained by contacting your local representative. Please read the information carefully before investing.

Mutual funds under a custodial or trust account agreement are intended as long-term investments designed for retirement purposes. Account values fluctuate with market conditions, and when surrendered, the principal may be worth more or less than the original amount invested. A group fixed annuity is an insurance contract designed for investing for retirement purposes. The guarantee of the fixed account is based on the claims-paying ability of the issuing insurance company. Although it is possible to have guaranteed income for life with a fixed annuity, there is no assurance that this income will keep up with inflation. Money taken from the plan will be taxed as ordinary income in the year the money is distributed. An annuity does not provide any additional tax benefit, as tax deferral is provided by the Plan. Annuities may be subject to additional fees and expenses, to which other tax-deferred funding vehicles may not be subject. However, an annuity does offer other features and benefits, such as lifetime income payments and death benefits, which may be valuable to you.

Not FDIC/NCUA/NCUSIF Insured | Not a Deposit of a Bank/Credit Union | May Lose Value | Not Bank/Credit Union Guaranteed | Not Insured by Any Federal Government Agency

Insurance products issued by Voya Retirement Insurance and Annuity Company, One Orange Way, Windsor, CT 06095-4774. Securities are distributed by Voya Financial Partners, LLC (member SIPC). Custodial account agreements or trust agreements are provided by Voya Institutional Trust Company. Insurance obligations are the responsibility of each individual company. All companies are members of the Voya family of companies. Securities may also be through other broker-dealers with which Voya has selling agreements. Product and services may not be available in all states.