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NJ State Employees' Deferred Compensation Plan (NJSEDCP)

Type of Plan

IRC Section 457 – Pre-Tax Contributions

Who is Eligible

To enroll in the NJSEDCP, you must be employed by Rutgers University or the State of New Jersey or an eligible agency, authority, commission, or instrumentality of state government.

Employee Contribution

Under age 50: A combined pre-tax and after-tax contributions: $20,500 in 2022

Age 50 and Over: A maximum pre-tax and after-tax contributions: $27,000 in 2022

If eligible to make Special 457 Catch-up contributions: You may make a catch-up contribution in addition to your regular contribution during the last three years of employment prior to normal retirement. The maximum allowable catch-up amount is one times the normal contribution amount for that year. Contact Empower (formerly Prudential) at 866-657-3327 to request eligibility and available catch-up amount.

How it Works

You may voluntarily tax shelter a portion of your salary from federal income taxes while saving for retirement. Federal income tax is not due on deferred pre-tax amounts or accumulated earnings until you take a distribution from your account. You can take a distribution without penalty once you are no longer employed by Rutgers University.

Roth contributions are made on an after-tax basis, so the amount you contribute is included in your W-2 in the year you make your contribution. You can take a Roth distribution that is free from federal income taxes once (1) you have reached the age of 59 ½; (2) your first Roth contribution was made at least five years prior (going back to January 1 of that year); and (3) you are no longer employed by Rutgers University. Your Roth money is tracked separately from your pre-tax money and will appear as a separate item on the NJSEDCP participant website and on your detailed NJSEDCP statements.

Investment Options

A broad array of investment options. The NJSEDCP Website contains additional information.

How to Enroll

How to Make Changes

Employees may make changes to an existing NJSEDCP account at any time. Simply visit Empower NJSEDCP or complete the Salary Deferral Change Form and upload it to the OneSource portal. Ensure to write Rutgers/002 and your department name at the top of the form. Fax completed form to a Prudential representative at 844-514-3100.

For additional information about the Roth Contributions visit Empower NJSEDCP. You may also call OneSource at 732-745-SERV (7378) and visit the Roth 457 Contributions FAQs.