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Date: December 2, 2011

Bulletin Number: 1113

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Subject

Deferred Compensation Maximum Contribution Limits for Calendar Year 2012

Purpose

To notify agencies of increases in the maximum contribution limits for employees enrolled in the Deferred Compensation Plan for calendar year 2012, pursuant to IRS Section 457 Regulations.

  • The regular yearly contribution amount for Deferred Compensation has been increased from $16,500 to $17,000.
  • 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 $17,000, for a combined maximum total contribution of $34,000 for calendar year 2012.

  • An additional deferment is available to employees age 50 and over.  These employees can defer up to $5,500 in addition to their regular contribution amount, for a combined total contribution limit of $22,500 in 2012.  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)

Administration Paychecks dated 1/4/12
Institution Paychecks dated 1/12/12

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 Deduction mailbox.