Please Review This Important Information

IMPORTANT BENEFIT NEWS 

City of Detroit 457 Deferred Compensation Plan- (the”Plan”), please be advised that City of Detroit cannot give legal advice, and you should consult with your attorney or other advisor. However, it is important to note that all assets of the plan are set aside in a separate trust and/or insurance contract for the exclusive benefit of the plan participants and their beneficiaries pursuant to federal law (Section 457(g) of the Internal Revenue Code, the “Code”). As a result, the assets of the Plan (and the income related to such assets) are only available for the benefit of plan participants (and beneficiaries), and cannot be accessed by the City of Detroit or its creditors for any other purpose.

 By way of background, Code Section 457(g) was specifically added in 1996 to protect the benefits of governmental employees under a 457 Deferred Compensation Plan in times of bankruptcy or other financial distress of governmental employers.  This section of the Code requires an eligible governmental plan under § 457(b) to hold all assets and income of the plan in a trust for the exclusive benefit of participants and their beneficiaries.  Assets are set apart from the governmental employer’s general assets to ensure that creditors of a financially troubled entity could not make any claim on the assets of the plan.  

 If you have any additional questions about your 457 Deferred Compensation Plan, please contact your local Deferred Compensation account representative or Finance Debt Management at (313) 224-3310.