NACo Deferred Compensation Program - Overview
NACo Oversight
What makes the NACo Deferred Compensation Program truly unique is that NACo, the only national organization that represents the interests of county governments, takes an active role in the oversight and quality control of the Program. The NACo Program, which was launched in 1980, was created by county employees for county employees. The Program has not lost sight of this philosophy and utilizes an Advisory Committee comprised of county officials.
Advisory Committee
The NACo Deferred Compensation Advisory Committee was formed in 1982 to continue the tradition of county involvement and oversight in various aspects of the NACo Program. Committee members are appointed by the NACo President. Members are both elected and appointed county officials, from around the country representing various positions within county government, such as commissioners, finance officers and treasurers, personnel managers, and county administrators.
In addition, the executive directors of two state associations of counties that endorse the Program sit on the Committee. The Committee monitors the performance of the investment options offered in the Program; enhancements to the Program; employee education campaigns; and Program marketing activities. The Committee meets three times a year to discuss these and other topics.
Investment Options
The NACo Program has a diverse mix of top quality investment options. The NACo Variable Annuity (NACoVA) offers a variable annuity featuring a range of flexible, diversified choices. These product offerings include options that fit the needs of a wide variety of individuals, regardless of age or risk tolerance. The funds have well known, leading fund managers, including Morgan Stanley, American Century, Putnam, Dreyfus, and Oppenheimer Funds. For a list of mutual funds available, please visit www.nrsforu.com
Similarly, the NACo Program offers county employees a fixed annuity with a competitive, fixed rate of return, guaranteed by the Nationwide Life Insurance Company. The contract provides a current interest rate, which is declared quarterly and paid through the end of the quarter. To protect contributions from dramatic fluctuations in current interest rates, a minimum annual interest rate is declared in advance for the next year. This investment option undergoes an annual competitiveness test by an independent consultant to insure that the rates remain competitive. This option has proved to be a leader over the past decade.
Investment Oversight
As part of its contractual agreement, NRS evaluates the Program’s investment options on an annual basis to ensure that they remain competitive within their respective risk categories. Those that do not meet certain performance standards may be placed on “watch”, they may be closed to new deferrals, or they may be removed from the Program. The NACo Deferred Compensations Advisory Committee reviews this process.
Customer Service
The NACo Program offers county employees the highest level of service available in the industry. The NACo – NRS partnership provides services such individual financial counseling, a quarterly newsletter, and, round the clock toll-free customer service. Additionally, participants can manage their accounts at their convenience via web access. Participants may be connected to a customer service representative toll-free at 1-877-NRS-FORU (1-877-677-3678) or access accounts on-line at www.nrsforu.com.
Annual Review of the Program
The Program undergoes annual scrutiny to ensure that it remains competitive. Each year, NACo, NRS and Nationwide review the Program and implement changes in order to benefit the participants. This annual review is another safeguard to ensure that the Program remains competitive and continues to serve the best interests of the participants.
For more information on NACo's Deferred Compensation Program, contact Lisa Cole.
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