NYC Deferred Comp From Bad to Worse

It has been three months since the NYC Deferred Compensation Plan transitioned to a new recordkeeper, Voya Financial.  Clearly this transition did not work out as planned as participants continue to experience long wait times to speak to a representative.  When a participant finally gets to speak to a representative, the representative is often not able to solve the problem or issue the participant was calling about.

As often written about on this blog, the NYC Deferred Compensation Plan does not provide adequate information to participants to make an informed financial decision regarding the investments offered by the plan.  Currently, the website created by Voya Financial does not provide any historical information/ performance of the various investment fund choices; they simply provide the closing net asset values (NAV) of the funds compared to the previous close.  Compounding the problem,  the NYC Deferred Comp main website continues to post outdated investment fund profile sheets.  To date, the NYC Deferred Comp Fund has failed to provide the 2019 end of year performance regarding the investment funds.

Thomann Tax has heard from numerous clients who have decided to rollover their NYC Deferred Comp account because they are tired of the incompetence and unresponsiveness of the NYC Deferred Comp Plan.   Remember, you are not a client of the NYC Deferred Compensation Plan but only a participant.

14 replies
  1. George
    George says:

    Rumor has it that the fund takes a long time to accommodate a rollover out of the fund. Have you found that to be the case ?

        • Jim
          Jim says:

          I also submitted a rollover request on December 8 2019 and after many attempts and several hours on the phone it still hasn’t rolled over! The worst service in the financial services industry I have ever experienced! As this blog states you are not a “client” and therefore will not be treated as one.

  2. Robert Boyce
    Robert Boyce says:

    HORRENDOUS!! And I don’t feel any better that it’s not only me!! If been a “participant” of the DCP ( I don’t know, since 1982!?). I’ve done OK with them, in spite of their service. I had enough of them, approximately two weeks ago and submitted applications to transfer to Vanguard. I called the other day, for an update and they (Voya) said that’ll take ~THIRTY (business?) DAYS!!

  3. Mike
    Mike says:

    I also submitted the proper paperwork (after three hours on the phone with a vanguard rep and myself waiting to speak to a deferred company rep) in the beginning of December for a partial rollover to a Roth thinking it would be completed in the 2019 tax year. I am still waiting for the money to be rolled over as of 2/14/20. After this horrible experience I am contemplating rolling the entire account over but I would like to know if I do that would I be entitled to the early withdrawal benefits of the 457 laws.

  4. Luis
    Luis says:

    Yes it takes about 30 days. I did a rollover to vanguard of my non 457 funds. I would recommend you call and check status because they tend to make it difficult if items are missing they won’t call you and send you letter about 2 months later. The other day I re confirmed and realized that our plan doesn’t pay dividends or capital gains which other plans do. If you factor this in for non 457 funds a vanguard IRA is a no brainer. Vanguard has been great so far. Whenever I reach 59 1/2 I will rollover remaining 457 acct but I can’t since I’m younger I don’t want to increase age to be able to take out without penalty that’s something to keep in mind if rolling over acct that’s 457

  5. Lenny
    Lenny says:

    Peter, if I roll over my Deferred Comp. 457 fund into Vanguard, does Vanguard offer 457 plans with same rules ? Meaning, I can withdraw 457 funds without a 10 percent penalty after retirement from the city but before reaching my 59 1/2 birthday ? Thanks

    • Luis
      Luis says:

      No you will be subject to 10% if you attempt to withdraw after move if you are under 591/2. You can rollover your other non-457 accts

  6. John Cirolia
    John Cirolia says:

    Yes, shockingly bad. Simply disgraceful. The total account values on the home page do not tally to the individual transactions. My entire history of the past ten years has not disappeared into one lump November 2019 transaction. Website navigation is terrible. Bad to worse…and much, much worse.

  7. Tony
    Tony says:

    It seems we are all on the same page,…I moved my 457 and 401k to Vanguard and Schwab,.. did take over a month and a couple of calls, I was told, checks are cut only once a month, its done by mail, Vanguard got the check directly, Schwab got it from me after I received it,.. strange process… and disappointing it could not be a wire transfer. Glad Im out and finally done with it!.. Unfortunately my “Spl 401k rollover” is still there for the tax favorability or that would be gone too!… very frustrating!

  8. john
    john says:

    Many people are not aware that if you want to roll your 457/401k from the deferred comp plan to a discount broker like Fidelity/Vanguard/Schwab that they will handle the transfer for you. Call them up tell them what you want to do and they will contact DCP and they will do the leg work. DCP may call or contact you to confirm you authorized the transfer, and try to convince you not to do it but you wont have to deal with DCP.

  9. Crissy
    Crissy says:

    Ugh, I was on the site today just to check my balance and transaction history; it was awful. As someone else said, I’m not sure I feel better knowing I’m not the only one to think this.

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