Purpose:
The purpose of this bulletin is to notify agencies of the maximum contribution limits for employees enrolled in SRA and TDA plans and provide instructions for entering updates to these plans.
Background:
Pursuant to IRS Regulations, Section 403(b):
- The regular annual contribution amount will increase to $23,000 for calendar year 2024.
- An additional deferment is available to employees age 50 and over.
- These employees may defer up to $7,500 of age 50 catch-up contributions in addition to their regular contribution amount for a combined maximum contribution limit of $30,500 in 2024.
- An additional deferment is also available to CUNY (NYT TDA code 414 only) employees qualifying for the 15-year catch-up.
- These employees can defer up to $3,000 in addition to their regular contribution amount and age 50 catch-up for a combined maximum contribution limit of $33,500 in 2024.
Affected Employees:
CUNY employees electing one of the following deductions are affected:
| Deduction Code | Narrative Description |
|---|---|
| 403 | CUNY 403(b) Plan |
| 413 | NBE Tax Deferred Annuity |
| 414 | NYT Tax Deferred Annuity |
| 703 | CUNY After Tax 403(b) Plan |
SUNY employees electing the following deductions are affected:
| Deduction Code | Narrative Description |
|---|---|
| 404 | SUNY 403(b) Plan |
| 704 | SUNY After Tax 403(b) Plan |
Education Department, School for the Blind, and School for the Deaf employees electing the following deduction are affected:
| Deduction Code | Narrative Description |
|---|---|
| 432 | ED TDA Copeland |
Effective Dates:
Maximum contribution limits will be effective beginning in calendar year 2024.
OSC Actions:
OSC will update PayServ to reflect the maximum contribution limits for calendar year 2024.
PayServ will automatically stop SRA/TDA contributions when an employee reaches the maximum annual contribution limit based on the criteria mentioned in ‘Background’ section above. Contributions resume the first paycheck of the following calendar year.
Agency Actions:
Agencies must update the Savings Plans page in accordance with the instructions below if an update to the employee’s SRA or TDA election for 2024 is necessary.
Note: Agencies must enter updates in accordance with the current year Agency Submission Schedule. The effective date, labeled as the Deduction Begin Date on the Savings Plans panel, should always be the first day of the current, unconfirmed pay cycle.
To start or change Flat Amount (for employees of SUNY, Education Department, School for the Blind, and School for the Deaf) or the Percent of Earnings election (for employees of CUNY), the agency must insert a new effective dated row for the applicable SRA/TDA deduction in employees’ Savings Plans panel and update Before Tax Investment/After Tax Investment reflecting employees’ new biweekly deferral election.
To stop the deduction, agencies must insert a new effective dated row for the applicable SRA/TDA deduction in employees’ Savings Plans panel and select Terminate on Coverage Election panel.
Employees over the age of 50, or turning 50 within the calendar year, will have their age 50 catch-up limit automatically applied. If an employee chooses to not contribute the maximum amount for employees over age 50, their deferral election must be adjusted accordingly.
Agencies must also ensure employees’ date of birth is correct within PayServ to allow the age 50 catch-up limit to be applied.
Questions:
Questions regarding this bulletin may be directed to the Payroll Retirement mailbox.