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Date: December 15, 2005 Bulletin Number: 525
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Subject

Changes to the Maximum Year-to-Date Deferred Compensation Deductions for the Calendar Year 2005 Pursuant to Current IRS Section 457 Regulations

Purpose

To notify agencies of increases in the maximum contribution limits for employees enrolled in the Deferred Compensation Plan for calendar year 2005.

  1. The regular yearly contribution amount for Deferred Compensation has been increased from $13,000 to $14,000.
  1. The Deferred Compensation "Retirement Catch Up" provision, available to employees in each of the last three years prior to normal retirement age, has been increased to $14,000, for a combined maximum total contribution of $28,000 for calendar year 2005.
  1. An additional deferment is available to employees age 50 and over. These employees can defer up to $4,000 in addition to their regular contribution amount, for a combined total contribution of $18,000 in 2005. However, employees cannot choose to have both the "Retirement Catch Up" and the "50 and Over Catch Up" additional amounts deferred in the same year.
Affected Employees
Employees enrolled in the Deferred Compensation Plan.
Effective Date(s)
Institution checks dated 01/06/05.
Administration checks dated 01/12/05.
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 about their Deferred Compensation percentages and deductions may contact the New York State Deferred Compensation Plan's HELPLINE at (800) 422-8463.