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Date: December 15, 2016

Bulletin Number: 1535

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Subject Supplemental Retirement Annuity (SRA) and Tax Deferred Annuity (TDA) Contribution Limits for 2017

Purpose To inform agencies of OSC’s annual record update process and provide data entry instructions for entering SRA and TDA deductions to ensure compliance with contribution limits.

Background Pursuant to IRS Regulations, Section 403(b):
  • The regular annual contribution amount will remain at $18,000 for 2017.
  • An additional deferment is available to employees age 50 and over. These employees can defer up to $6,000 in catch-up contributions in addition to their regular contribution amount for a combined total contribution limit of $24,000 in 2017.
  • An additional deferment is also available to SUNY, Education Department, School for the Blind and School for the Deaf employees who qualify for the 15-Year Rule. These employees can defer up to $3,000 in addition to their regular contribution amount for a combined contribution limit of $27,000 in 2017.  CUNY participants are not eligible to participate in the 15-Year Rule as decided upon by CUNY Board of Trustees on November 23, 2015.
Affected CUNY Employees Employees who currently have any of the following SRA or TDA deductions:

Deduction Code  Narrative Description
403  Supplemental Ret Ann CUNY  
413  NBE Tax Deferred Annuity
414 NYT Tax Deferred Annuity


Affected SUNY Employees Employees who currently have any of the following SRA or TDA deductions:

Deduction Code Narrative Description
404 Supplemental Ret Annuity Prog
408 SUNY TDA Fidelity
415 SUNY Tax Deferred Annuity

Affected Education Department, School for the Blind and School for the Deaf Employees

Employees who currently have the following SRA or TDA deduction:

Deduction Code Narrative Description
432 ED TDA Copeland

 

Effective Date(s) Institution Paychecks dated January 5, 2017.
Administration Paychecks dated January 11, 2017.

OSC Actions To help prevent employees from making excess 403(b) deferrals in 2017, OSC will insert a new effective-dated row that is based on the first day of the pay period for payroll checks issued on 1/5/2017 and 1/11/2017.  These effective dates are as follows:

11/24/2016 Inst Extra Lag (1/05/2017 check date)
12/08/2016 Inst Lag (1/05/2017 check date)
12/22/2016 Inst Current (1/05/2017 check date) 
12/15/2016 Admin Lag (1/11/2017 check date)

The new effective-dated row will reflect:

  • The employee’s current biweekly deferral election.
  • The regular maximum contribution amount of $18,000 for 2017 in the Goal Amount field.
  • A beginning contribution balance of zero (0) for 2017 as reflected by the blank Goal Balance field.

OSC will terminate all active SRA and TDA deductions for employees whose status is Retired, Terminated or Deceased by end dating the deduction.

Agency Actions Agencies must review the Control-D report NBEN749 (SRA/TDA Default Goal Amount) which lists participating employees. This report will be available in Control-D on or about December 16, 2016 for Institution agencies and on or about December 23, 2016 for Administration agencies.

Agency Processing Instructions to Change Existing Deductions or Start New Deductions If a change to the employee’s current deduction or Goal Amount for 2017 is necessary, agencies must update the General Deduction page in accordance with the instructions below.

Note: Agencies must not begin this data entry until after December 16, 2016 for Institution agencies and December 23, 2016 for Administration agencies.

When making changes, the transactions should be entered only during the processing of the pay period when the deduction will take effect. Agencies must not insert future-dated transactions for these deduction codes.

To change the Goal Amount for employees who are eligible to make additional contributions in 2017 under the “age 50 and over” and/or the “15-Year Rule” the agency must insert a new effective dated row for the applicable SRA/TDA deduction code in the employee’s General Deduction Data record. All information will roll up on the newly inserted row. The agency must override the Goal Amount to reflect the employee’s increased 2017 deferral limit.

To change the Deduction Amount (for employees of SUNY, Education Department, School for the Blind and School for the Deaf) or the Percent (for employees of CUNY), the agency must insert a new effective dated row for the applicable SRA/TDA deduction in the employee’s General Deduction Data record and override the Deduction Amount/Percent to reflect the employee’s new biweekly deferral election.

To cancel the deduction, the agency must insert a new effective dated row for the applicable SRA/TDA deduction in the employee’s General Deduction Data record and populate the Effective Date and End Date fields with the first day of the pay period.

In order to prevent employees from making excess 403(b) deferrals in 2017, agencies must not enter or change the Goal Balance Amount under any circumstances.

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