Most organizations use one of three approaches to determine contribution levels into 457(f) plans.

1) A percentage of compensation which according to most surveys fall between 10-30% of base compensation.

2) Discretionary as determined by the board annually. This can be based on individual or organizational achievement of specified goals.

3) Income replacement approach – Under this approach the organization considers existing retirement benefits, years of service to be completed at retirement and benefit level to target. As an example, the organization wishes to provide the CEO with a retirement package of 60% of final average compensation.