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The Missouri Deferred Compensation Plan is a retirement savings plan designed for state employees, aimed at providing an additional monthly paycheck to supplement pension and Social Security in retirement. It is a defined contribution plan where employees contribute their own funds, choose investments, and manage their balances during their working years and through retirement. This plan, also referred to as a 457 plan, serves as the public employees' equivalent of a 401(k) in the private sector. A key advantage of the 457 plan is that public employees can access their retirement savings before age 59½ without incurring an early withdrawal penalty, making it a valuable employee benefit.
