Very simply, the State of Missouri Deferred Compensation Plan is a retirement savings plan for state of Missouri employees. Its main role is to provide an additional monthly paycheck that will supplement pension and social security in retirement. More specifically, the deferred compensation plan is a defined contribution plan, where employees contribute their own money, choose their own investments, and manage their own balance while working and through retirement. The deferred compensation plan is also known as a 457 plan, which is the public employee equivalent of a 401k savings account found in the private sector. The major difference between a 401k and a 457 plan is that public employees can access their retirement savings prior to age 59 ½ without paying an early withdrawal penalty. It’s one of the many reasons why 457 plans like the deferred compensation plan are a valuable employee benefit.