Purpose

To notify agencies of increases in the maximum contribution limits for employees enrolled in the Deferred Compensation Plan for calendar year 2004.

1. The regular yearly contribution amount for Deferred Compensation has been increased from $12,000 to $13,000.
2. The Deferred Compensation "Catch Up" provision, available to employees in each of the last three years prior to normal retirement age, has been increased to $13,000, for a combined maximum total contribution of $26,000 for calendar year 2004.
3. An additional deferment is available to employees age 50 and over. These employees can defer up to $3,000 in addition to their regular contribution amount, for a combined total contribution of $16,000 in 2004. However, employees cannot have both "Catch Up" and "50 and over" additional amounts deferred in the same year.

Affected Employees

Employees enrolled in the Deferred Compensation Plan.

Effective Date(s)

Institution checks dated 01/08/2004. Administration checks dated 01/14/2004.

OSC Actions

OSC will update the Deferred Compensation Limit table.

Questions

Questions regarding this bulletin may be directed to the Payroll Deductions mailbox.

Employees with questions on their Deferred Compensation percentages and deductions should telephone the New York State Deferred Compensation Plan's HELPLINE at (800) 422-8463.