Purpose

To notify agencies of increases in the maximum contribution limits for employees enrolled in the Deferred Compensation Plan for calendar year 2006, pursuant to IRS Section 457 Regulations.

• The regular yearly contribution amount for Deferred Compensation has been increased from $14,000 to $15,000.
• 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 $15,000, for a combined maximum total contribution of $30,000 for calendar year 2006.
• An additional deferment is available to employees age 50 and over. These employees can defer up to $5,000 in addition to their regular contribution amount, for a combined total contribution limit of $20,000 in 2006. 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)

Institution paychecks dated January 5, 2006
Administration paychecks dated January 11, 2006

OSC Actions

OSC will update the Deferred Compensation Limit table.

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 Web site at www.nysdcp.com may provide additional information.

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