City of Milwaukee 457 Deferred Compensation Plan

Frequently Asked Questions

 
Question:
How do I enroll in the City of Milwaukee Deferred Compensation Plan?

Answer:
View Joining the Plan for the City of Milwaukee Deferred Compensation Plan enrollment information.

back to top
 
Question:
How do I change my address on my account?

Answer:
Active employees who are currently deferring to the Plan must change their address or name with their local payroll office. No further action should be needed. Terminated or retired Plan participants, beneficiaries and Alternate payees can 1) call the Information Line at 844-360-MDCP (844-360-6327), verify their Social Security number and password and provide their updated address to a Customer Service Associate or 2) change their address online after logging into their password-protected account.

back to top
 
Question:
How do I verify or change my beneficiary?

Answer:
You can view your current beneficiary designations or make beneficiary designations on this website by going to Personal Information.

back to top
 
Question:
What is the maximum I can contribute from my paycheck?

Answer:
You may contribute between 1% and 80% of your monthly gross compensation on a before-tax or Roth after-tax basis, provided the amount does not exceed the current IRS annual contribution limits. Please refer to www.voya.com/IRSlimits for current limitations.

back to top
 
Question:
What is the difference between before-tax and Roth after-tax contributions?

Answer:
You do not pay taxes on before-tax contributions, in turn lowering your current taxable income. Instead, your before-tax contributions and their related earnings are taxed at withdrawal, just like ordinary income. Roth after-tax contributions are taxed today but let you build a nest egg of tax-free income in retirement, provided certain conditions* are met. For more details, visit www.voyadelivers.com/roth.

*If you keep the Roth money in your account for at least a five taxable-year period, and are age 59½ or older (or upon your death or disability), you’ll pay no taxes on those contributions or earnings when you withdraw them.
back to top
 
Question:
Can I change/stop my contribution amount?

Answer:
Yes, you may change or cancel your contribution amount at any time by logging into your account with your password and accessing through the Contribution & Savings section of this website by selecting "Manage Contributions", or by calling the Information Line at 844-360-MDCP (844-360-6327). The change will take effect as soon as administratively possible the month after your change is requested.

back to top
 
Question:
What is the Age 50 Catch-Up?

Answer:
If you are age 50 or older, and contribute to the annual limit, may also be eligible to contribute an additional amount as catch-up contributions. Please refer to www.voya.com/IRSlimits for current limitations.

Employees who have not contributed at the maximum deferral rate may be permitted to make extra "Three year 457 Catch-up" contributions to the Plan in the three years prior to attaining their normal retirement age. The total amount of contributions (normal and catch-up) cannot exceed IRS contribution limits. If you are interested in participating in the catch-up program, please contact the Information Line at 844-360-MDCP (844-360-6327).

You may not participate in the Age 50 and Over Catch-Up and the Three year 457 Catch-Up described above in the same calendar year. You may change your contribution amount or stop contributions at any time through the Contributions & Savings section of this website by selecting Change Contributions or by calling the Information Line at 844-360-MDCP (844-360-6327).

back to top
 
Question:
Can I use the Special 3-Year Catch-Up with the Age 50 and Over Catch-Up?

Answer:
No. A participant cannot use both catch-up provisions in the same tax year.

back to top
 
Question:
Can I make rollover contributions to my Plan account?

Answer:
Yes. You may transfer or roll all of your pre-tax or Roth after-tax dollars into your City of Milwaukee Deferred Compensation account from a:
  • 457 deferred compensation plan or investment provider
  • Traditional pre-tax IRA (Individual Retirement Account) [only on a pre-tax basis]
  • 401(k) or 403(b) account established with a previous employer
  • 401(a) pension plan [only on a pre-tax basis]


back to top
 
Question:
What kind of transactions and services are available via the website, telephone or mobile app?

Answer:
You can:
  • Check your account balance.
  • Check fund performance and fund prices.
  • Make or change your investment elections.
  • Transfer balances from one fund to another.
  • Reallocate balances.
  • Elect automatic rebalancing
  • Initiate a loan


back to top
 
Question:
When are transactions effective?

Answer:
Transactions completed before 3 p.m. Central time are effective the same business day. Transactions completed at or after 3 p.m. Central time are effective the next business day, except contribution deferral changes which are effective as soon as administratively possible.

back to top
 
Question:
Can I cancel a transaction after I receive a confirmation number?

Answer:
Yes, transactions can be canceled any time before 3 p.m. Central time on the same day.

back to top
 
Question:
What are frequent trading restrictions?

Answer:
These are policies instituted by the individual fund managers to protect long-term shareholders and discourage short-term trading.

back to top
 
Question:
What withdrawal options do I have while I am still employed?

Answer:
You are allowed four different types of in-service withdrawals:
  • A qualified unforeseeable emergency as defined by the IRS
  • A qualified de minimis withdrawal
  • An Age 70.5 Withdrawal
  • A Rollover Withdrawal (Non-Roth and Roth Rollover Sources)


back to top
 
Question:
What distribution options do I have when I leave employment?

Answer:
If you separate from service, you can leave your entire account balance in the Plan until you are required to take minimum distributions at age 73. If you do want to withdraw some money, you have the following distribution methods or options:

  1. Lump-sum Distribution,
  2. Partial Lump Sum,
  3. Installment Payments (specified number of payments or specific dollar amount)
  4. Required Minimum Distributions
  5. Direct Rollover
  6. Convert Pre-tax Dollars into Roth After-tax Dollars
  7. Combination of the above


For more information regarding the distribution options in the Plan, please review the Plan Highlights section of this website.

back to top
 
Question:
Do I have to pay taxes and/or penalties on the money I withdraw from the Plan?

Answer:
Withdrawals from your pre-tax account are subject to State and federal income taxes. However, you are only taxed on withdrawal from the Plan. If you have a Roth 457 account, withdrawals are tax free as long as the distribution is at least five years after the contribution date and you are either over age 59½, disabled, or the distribution is made to your beneficiary subsequent to your death. Withdrawals from section 457 deferred compensation plan assets do not have a penalties assessed because of your age. If you have rolled assets into the plan from a qualified plan additional rules may apply if you are under age 59 ½. Refer to the plans Special Tax notice for more information.

back to top
 
Question:
Does the City of Milwaukee Deferred Compensation Plan have a Loan Program?

Answer:
Yes. You can have up to one loan outstanding at any one given time.

back to top
 
Question:
How do I find out how much I owe on my loans?

Answer:
Your remaining principal loan payoff amount is available on this website under Loans & Withdrawals. Payoffs should be made after last ACH payment is reflected in balance or up to 2 weeks prior to the next ACH payment. ACH loan payments are drafted 7 business days prior to the end of each month. The loan payoff amount displayed may not be accurate for payoffs made within 2 weeks of the last day of the month. Please call the Information Line at 844-360-MDCP (844-360-6327) and speak with a Customer Service Associate to get the full loan payoff amount which may include accrued interest.

back to top
 
Question:
What happens if I default on a loan?

Answer:
A loan is "in default" if a scheduled payment is not received by the last day of the calendar quarter following the calendar quarter in which the required payment was due. Employees who are on a Company-approved leave of absence may suspend repayments for up to 12 months. Failure to restart the scheduled loan repayments after 12 consecutive months will constitute a loan default. If you default on a loan, the outstanding loan balance will be considered a taxable distribution. You will be subject to ordinary income taxes on the outstanding loan balance.

back to top
 
Question:
What happens to my loan if I no longer work for my employer?

Answer:
You must continue to make monthly payments or you must pay off the loan in full to avoid a default. Please see the question, "What happens if I default on a loan?" for more details.

back to top
 
Question:
I have a current loan and I'm on a military leave of absence. How do I handle my loan payments?

Answer:
You may suspend your loan payments until you return to active employment. The loan term will be extended by the duration of your leave after returning from military. Since special rules apply, you should contact a Customer Service Associate to discuss them.

back to top
 
Question:
What is the Information Line?

Answer:
The Information Line is an automated telephone system that lets you perform most account transactions over the phone. When you call the Information Line at 844-360-MDCP (844-360-6327), you’re asked to enter your Social Security number and password. Then a recorded voice guides you through the menus, and you make your selections by pressing the appropriate keys on your telephone keypad.

back to top
 
Question:
How do I use the Information Line?

Answer:

Step 1: From a touch-tone telephone, dial 844-360-MDCP (844-360-6327).

Step 2: Enter your Social Security number using the telephone keypad numbers.

Step 3: Enter your 6 digit PIN number.

If you’re calling from a rotary telephone, the voice recognition feature will allow you to access the information line by saying your Social Security number and password.

Step 4: From the Main Menu, select an appropriate number to perform the function you want.

At any time during your call, you can press:
9 — from any point to exit the Information Line

0 — to talk with a Customer Service Associate

back to top
 
Question:
What is the alternate security process used by the Information Line?

Answer:
If you don't remember your Password and do not remember your security questions, call a Customer Service Associate through the Information Line at 844-360-MDCP (844-360-6327). You will be asked to provide your Social Security number, date of birth, and address on file at Voya to verify your identity.

If you use alternate security, you will not be able to request any type of transaction that generates a check or ACH deposit (for example: you will not be able to take a loan, withdrawal, or distribution). You also will not be able to request a retiree address update or a beneficiary change. If you need to conduct one of these transactions, you will need to use alternate security to request a Password reminder, which will be mailed to you. Once you have received your Password, you will be able to use the website or the Information Line to do any type of transaction.

back to top
 
Question:
What are the New York Stock Exchange holidays?

Answer:
The stock market is open from Monday through Friday, 8:00 a.m. to 3 p.m. Central time, and will observe the following holidays:
  • New Year's Day
  • Martin Luther King, Jr. Day
  • Washington's Birthday
  • Good Friday
  • Memorial Day
  • Juneteenth
  • Independence Day
  • Labor Day
  • Thanksgiving Day
  • Christmas Day


back to top
 
Question:
I forgot my password. How can I get another one?

Answer:
You may order a Password reminder by calling the Information Line at 844-360-MDCP (844-360-6327), or by clicking on the “Forgot Password” link on the website login page, and following the instructions for resetting your Password.

back to top
 
Question:
When can I expect my account statements to arrive?

Answer:
Quarterly statements are available online through your password-protected account’s inbox under Statements & Documents. In addition, you have the flexibility to generate an online statement at any time by going to Overview>Statements & Documents. In addition to your account statements, you can elect to receive other correspondence, such as regulatory documents, posted to your account’s online inbox. This feature not only helps the environment and ends regular mail clutter, it’s also more secure.

If you prefer, you can opt to have paper statements mailed to your home address following the end of each calendar quarter. Please contact Kim Kuehn at (414)286-5541 to request this.

back to top
 
Question:
What should I do if I’m getting divorced?

Answer:
If you are getting divorced, you will have to apply for a Qualified Domestic Relations Order (QDRO). A QDRO establishes your spouse’s legal right to receive a percentage of your City of Milwaukee Deferred Compensation Plan benefits, in accordance with the terms of your divorce agreement, the applicable Plan’s rules, and legal guidelines. To get more information about the QDRO process, please call the Information Line at 844-360-MDCP (844-360-6327) or visit the QDRO Center in the Education and Tools Section of the website.

back to top
 
Question:
Who can I contact If I have an American United Life Policy (AUL)?

Answer:
You can contact AUL at 1-800-261-9618.

back to top