This page provides information about the automatic enrollment provision of the Washington State Deferred Compensation Program (DCP). DCP automatic enrollment appies to newly hired, full-time employees of qualifying state employers.
Welcome to DCP – the Deferred Compensation Program! As a new Washington public employee, you will be automatically enrolled in the program if you work for a participating employer. DCP is a tax-deferred savings plan administered by the Washington State Department of Retirement Systems. It’s designed to help you realize your retirement goals by offering a convenient way to build retirement income beyond your regular pension.
Because DCP is voluntary, there are actions you can take once you receive your enrollment notification letter in the mail. For example, you can change your contribution amount or your investment options. You can also opt out of DCP under the procedures listed below, with the option to rejoin later.
Example: Someone hired in February will begin DCP contributions in May and will have until August to stop and withdraw these contributions
Your organization participates in automatic enrollment.
Yes. Automatic enrollment does not include student employees or retirees returning to work, even if they fit the newly hired/full time employee status.
Once you receive a DCP notification letter you can choose to opt out, change your contribution options or select another investment. Make these changes through your online account or call 888-327-5596.
3% of pretax income is the default deferral rate.
Approximately three months after your hire date. The time varies due to your employer’s payroll cycles. Changes made during the initial automatic enrollment period make you an active DCP participant, which means your contributions may begin sooner AND you can no longer withdraw any contributions made under automatic enrollment.
If you change your investment option or contribution amount, this will make you an active participant (which means you can no longer withdraw any contributions made during automatic enrollment).
Yes. At any time during your employment, you can stop your deferrals or change your contribution amounts. You can also change investment options.
DCP contributions are pretax.
Your contributions will be invested in the Retirement Strategy Fund that assumes you’ll retire at age 65.
Yes. If you make this choice within 90 days from your first contribution, you can withdraw your contributions from DCP as long as the record keeper receives your withdrawal form within the 90 days. Call Empower Retirement at 888-327-5596 to request a form.
Yes, because your contributions are pretax dollars. The tax withholding is 10%.