Page 133 - AugDefComp

YOUR

RETIREMENT

AT YOUR SERVICE.

COUNTY of
SAN MATEO

Did you know that leaving your account in the County of San Mateo Deferred
Compensation Plan after you retire or separate service from the County may be one
of your best options? We’ve learned that many employees don’t realize they have

the ability to remain invested in the plan following their separation from service.
We want to let you know that there could be some potential advantages to leaving
your account balance in the Plan. Here are some things to consider when deciding

what to do with your Deferred Compensation Plan account balance:

457 Deferred Compensation Plans do not have penalties on
withdrawals before age 59½

If you leave the County or retire before the age of 59½ and need to take a withdrawal from your
account, you will not incur any tax penalties. When taking a withdrawal from other retirement
accounts, such as Individual Retirement Accounts (IRAs) and 401(k)s, you may be subject to a
10% penalty for taking a cash distribution before the age of 59½. 457 plans, like the County of
San Mateo Deferred Compensation Plan, are not subject to this 10% penalty.

Potential for lower fees

Because of our size, San Mateo County is able to provide a plan with relatively low fees. If you move
your money to a vehicle like an IRA, you are moving into an individual product and may face higher
fees due to the retail nature of the funds offered. Our group plan has approximately $550 million
in plan assets; this gives the County’s Plan the economy of scale to negotiate lower fees with the
service providers we partner with.

County oversight and due diligence surrounding

investment offerings

The County has a Deferred Compensation Committee made up of nine employees (8 employees
and 1 retiree) from various departments, who share the responsibility of comprehensively reviewing
the overall effectiveness of the Plan throughout the year. The Committee has engaged an external
third party investment consultant, NFP, to closely monitor the Plan and ensure we are offering high
quality, low cost investments.