Participating in the Massachusetts Deferred Compensation SMART Plan may help provide a more comfortable and secure financial future. The Plan is established under the Internal Revenue Code Section 457, which allows eligible employees to save and invest before-tax or Roth 457 contributions through salary deferrals.
The Massachusetts Deferred Compensation SMART Plan is a voluntary retirement savings program. Retiring employees may defer accumulated sick pay, vacation pay and back pay into their SMART Plan account.
Employees separating from service may defer accumulated vacation and/or back pay.
Applicable amounts may be deferred for any calendar month only if:
- The amount would have been available for use or would have been paid to the employee if employment had not terminated.
- The amount is paid within 2 1/2 months following separation from service, and
- An agreement providing for the deferral is entered into before the beginning of the month in which the amounts would otherwise be paid or made available.
Take advantage of this valuable employee benefit – Save Money And Retire Tomorrow.