Contribution Opportunities

Contribution Opportunities


The amount you are allowed to contribute to your 457 Plan is based on your taxable compensation as defined by the Internal Revenue Code (IRC).

In 2011, you may contribute up to the lesser of:

  • 100% of includible compensation; or
  • $16,500, whichever is less

In 2012, you may contribute up to the lesser of:

  • 100% of includible compensation; or
  • $17,000, whichever is less

There is no minimum requirement. Employees can contribute what is comfortable for them. Changes may be made to your deduction at your request anytime.

For this purpose, taxable compensation equals your gross compensation minus all pre-tax contributions to other retirement plans, IRC Section 125 cafeteria plans, if any, and the like which reduce your taxable compensation for the year (other than your 457 contribution amount).


Catch-Up Limits


The catch-up contribution limit for 2010 and 2011 is $33,000. The new catch-up contribution limit for 2012 is $34,000. Only participants who are three years away from their regular retirement age are eligible to exercise the catch-up provision.

Participants age 50 or over are able to make additional contributions of:

  • $5,000 in 2008
  • $5,500 in 2009
  • $5,500 in 2010
  • $5,500 in 2011
  • $5,500 in 2012


Combined Plan Limits


Participants in both the 457 Plan and a 403(b) Plan are able to contribute the maximum amount to each plan.


Investments Options


For your 457 Plan, you can direct your money into one or more of a variety of investment options managed by some of the most reputable and recognized names in the industry. These choices include variable investment options. The variable options provide variable returns, which do not guarantee principal and are not guaranteed as to a fixed dollar amount. The rate of return you receive on a variable option may increase or decrease depending upon the performance of the underlying investments in the portfolio.


Unlimited Variable Option Transfers


All of the variable options have unlimited transfer capability.


Stable Value Fund


Money cannot be transferred directly from the Stable Value Fund to a short-term bond fund. It must be in a stock fund for 90 days.


Fund Operating Expenses


Each variable investment option has annual operating expenses, which differ depending on the options you choose.


No Contract Maintenance Fee


Fee Information


There are no recordkeeping or administrative fees for the Plan.


Withdrawals Available


Withdrawals may be made from your 457 Plan upon the following qualifying events:

  • Retirement
  • Separation from service *
  • Total disability *
  • Unforeseeable emergency *
  • Attainment of age 70 1/2
  • Death of participant
  • loan

* as defined by the IRC

Currently, there are no withdrawal charges. Ordinary income taxes will apply to each withdrawal. All withdrawals are subject to the authorization of your employer.


Payout Options


Unless otherwise restricted by your plan, the following payout methods are available to help meet your needs at retirement:

  • Periodic payments
  • Lump sum
  • Non-transferable annuity contact




Government of Guam 457 Plan assets may be rolled into an IRA. The plan accepts rollovers from other 401(a)/(k); 403(b); 457 Plans and/or IRAs.


Tax Credit


Participants with income under specified thresholds will receive a tax credit for contributing to a plan.


Need more information?


Great-West Life & Annuity Insurance Company/BenefitsCorp is the Retirement Funds registered representative.

Please do not hesitate to contact them at: 2nd flr., 424-B Route 8, Maite, Guam 96927. Tel. 475-8945/Fax 477-1173 or visit their website.