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Date:December 4, 2006
Bulletin Number: 680
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Subject

Change to the Maximum Deferred Compensation Contribution Limits for Calendar Year 2007

Purpose

To notify agencies of increases in the maximum contribution limits for employees enrolled in the Deferred Compensation Plan for calendar year 2007, pursuant to IRS Section 457 Regulations.

  • The regular yearly contribution amount for Deferred Compensation has been increased from $15,000 to $15,500.

  • 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 $15,500, for a combined maximum total contribution of $31,000 for calendar year 2007.

  • An additional deferment is available to employees age 50 and over.  These employees can defer up to $5,000 in addition to their regular contribution amount, for a combined total contribution limit of $20,500 in 2007.  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)

Paychecks dated January 4, 2007 (Institution).
Paychecks dated January 10, 2007 (Administration).

OSC Actions

OSC will update the Savings Plan Tables to allow the new maximum amounts to process.

Questions

Questions regarding Deferred Compensation deductions and catch-up plans may be directed to the NYS Deferred Compensation Helpline at 1-800-422-8463.  The NYS Deferred Compensation website at www.nysdcp.com may provide additional information.

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