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.

Affected CUNY Employees

Employees who currently have any of the following SRA, TDA or 403 Roth deductions:

Deduction Code      Narrative Description
400                             CUNY 403 Roth
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                           SUNY 403(b) Plan

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

Background

Pursuant to IRS Regulations, Section 403(b):

• The regular annual contribution amount will increase from $18,000 to $18,500 for 2018.
• 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 $24,500 in 2018.
• 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 $27,500 in 2018.  CUNY participants with deduction codes 400, 403, & 413 are not eligible to participate in the 15-Year Rule as determined by CUNY Board of Trustees on November 23, 2015.

Effective Date(s)

Institution Paychecks dated January 4, 2018
Administration Paychecks dated January 10, 2018

OSC Actions

To help prevent employees from making excess 403(b) deferrals in 2018, OSC will insert a new effective-dated row that is based on the first day of the pay period for payroll checks issued on 1/4/2018 and 1/10/2018.  These effective dates are as follows:

11/30/17 Institution Extra Lag (1/04/18 check date)
12/07/17 Institution Lag (1/04/18 check date)
12/21/17 Institution Current (1/04/18 check date)
12/14/17 Administration Lag (1/10/18 check date)

The new effective-dated row will reflect:

• The employee’s current biweekly deferral election.
• The regular maximum contribution amount of $18,500 for 2018 in the Goal Amount field.

Control-D Report Available After Processing

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 15, 2017 for Institution agencies and on or about December 22, 2017 for Administration agencies.

Agency Actions

If a change to the employee’s current deduction or Goal Amount for 2018 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 15, 2017 for Institution agencies and December 22, 2017 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 2018 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 2018 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.

CUNY agencies with employees with more than one SRA/TDA or 403 Roth – the combined amount should not exceed the limit.  Contact employee to see how they want the Goal Amount split.

In order to prevent employees from making excess 403(b) deferrals in 2018, agencies must not enter or change the Goal Balance Amount under any circumstances.

Questions

Questions regarding this bulletin may be directed to Payroll Retirement Mailbox