Purpose

To notify agencies of the maximum contribution limits for employees enrolled in the Deferred Compensation Plan for calendar year 2009.

Background

Pursuant to IRS Regulations, Section 457:

• The regular annual contribution amount for Deferred Compensation has been increased from $15,500 to $16,500.
• 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 from $15,500 to $16,500, for a combined maximum total contribution of $33,000 for calendar year 2009.
• An additional deferment is available to employees age 50 and over. These employees can defer up to $5,500 in addition to their regular contribution amount for a combined total contribution limit of $22,000 in 2009.  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 7, 2009 (Administration)

Paychecks dated January 15, 2009 (Institution)

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 may be e-mailed to the Payroll Deductions mailbox.