Plan Features
Designed by the FOP for FOP members
This section provides information on the features of the Blue Line 457 Plan. You may also wish to browse the Blue Line 457 Plan Frequently Asked Questions (FAQ).
Jump to . . .
- Eligibility
- Enrollment
- Contributions
- Catch Up Provisions
- Contributing Vacation and Sick Leave
- Transfering Exisiting Retirement Accounts
- Investments
- Withdrawals
- Beneficiary Information
Eligibility
The Blue Line 457 plan is open to all active Fraternal Order of Police members currently employed by and providing service to state, or local government entities whose lodge and employer formally adopt the plan. Unfortunately, FOP members providing service for the Federal Government are not eligible to participate.
Enrollment
Once your lodge and employer have adopted the Blue Line 457 Plan, you will be eligible to enroll in the plan and begin saving for retirement on a tax deferred basis.
To enroll in the plan, please complete a Blue Line 457 Plan Member Enrollment Form and return both copies of this form to your local lodge.
You may obtain the form by contacting ICMA-RC at 1-866-747-NFOP (747-6367).
Contributions
Contributions are made through payroll deduction. You may defer each year a maximum of $100% of your gross compensation1, or an annual dollar limit, whichever is less. The dollar limits are
| Year | Contribution Limit |
|---|---|
| 2006 | $15,000 |
| 2007 | $15,500 |
The Blue Line 457 Plan allows you to increase, decrease, stop and restart contributions as often as you wish, without fees or penalties, subject to your employer’s approval.
1Your gross compensation must first be reduced by any mandatory pre-tax (“picked-up”) employee 401 plan contributions.
Catch-Up Provisions
The Blue Line 457 Plan offers two “Catch-Up” provisions allowing you to contribute more than the normal annual maximum contribution amount.
The “Age 50 Catch-Up Provision” allows you to contribute an additional annual amount when you reach age 50 or older. This additional contribution is not dependent on your prior year’s deferrals to any deferred compensation account with your existing employer. The “Age 50 Catch-Up” limits are
| Year | Additional Age 50 Contribution |
|---|---|
| 2006 | $5,000 |
| 2007 | $5,000 |
The “Normal Catch-Up Provision” allows you to make up for eligible contributions not deferred to an existing 457 plan with your current employer in prior years, permitting up to double the normal maximum annual contribution in effect for the year.
Contributing Accumulated Vacation and Sick Leave
The Blue Line 457 Plan allows for the deferral of accumulated vacation pay, sick pay, and back pay, (“accumulated pay”) if these deferrals are made within 2½ months of your separation from service. Any accumulated pay deferred to the plan is counted towards the contribution maximum in effect for that year.
Transferring Existing Retirement Accounts
The Blue Line 457 Plan allows you to transfer existing retirement plan accounts with your current or former employer to your Blue Line 457 Plan account. To transfer an existing 457 plan account to the Blue Line 457 Plan, please complete the Blue Line 457 Plan Request For Account Transfer Form
Investments
You will be able to take advantage of a full range of investment options that have been carefully selected to provide investment solutions for all types of members:
- Those who want to base their investment decision on the year they plan to retire
- Those who want to base their investment decision on their risk tolerance
- Those who want to take more control of their investment decisions and build their own custom fund lineup
Consult the list of available investments to obtain more information about the funds.
You should specify your investment allocation on your enrollment form. If you do not complete the allocation information, your contributions will be invested in the VantageTrust PLUS Fund. The VantageTrust PLUS Fund (the “PLUS Fund”) is a stable value fund that invests in investment contracts issued by financial institutions.
You may change your investment allocation or transfer your existing Blue Line 457 assets between available investment options at any time by accessing your account online at www.BlueLine457.org or by calling ICMA-RC at 1-866-747-NFOP (747-6367).
Withdrawals
You are eligible to withdraw funds from your Blue Line 457 Plan under the following circumstances:
- Following separation from service with your employer
- For the purchase of prior service credits from a defined benefit plan
- After you reach the age of 70½
- In-service withdrawals of rollover assets (funds transferred into your Blue Line 457 Plan from a previous employer’s retirement plan or Traditional IRA
- Unforeseeable emergency circumstances2
- Small Balance Withdrawals—available if your balance is under $5,000 and no contributions have been made to the account for two years
For additional information regarding withdrawals from the Blue Line 457 Plan, please review the Frequently Asked Questions or contact ICMA-RC at 1-866-747-NFOP (747-6367).
2This is defined as a severe financial hardship resulting from a sudden illness, disability or accidental property loss, subject to strict IRS guidelines.
Beneficiary Information
When you enroll, you can name the beneficiary(ies) for your account, or, if no beneficiary is selected, your Trust will be the beneficiary by default.