Purpose

To notify agencies of the maximum contribution limits for employees enrolled in the Deferred Compensation Plan for calendar year 2015.

Affected Employees

Employees enrolled in the Deferred Compensation Plan

Effective Date(s)

Institution Paychecks dated January 8, 2015
Administration Paychecks dated January 14, 2015

Maximum 2015 Deferred Compensation Contribution Limits

Pursuant to IRS Section 457 Regulations:

The regular yearly contribution amount for Deferred Compensation has been increased from $17,500 to $18,000.

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 $18,000, for a combined maximum total contribution of $36,000 for calendar year 2015.

An additional deferment is available to employees age 50 and over. These employees can defer up to $6,000 in addition to their regular contribution amount, for a combined total contribution limit of $24,000 in 2015. 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.

OSC Actions

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

Questions

Questions regarding this bulletin should be emailed to the Payroll Deductions mailbox.