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Date: December 6, 2012

Bulletin Number: 1215

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Subject

Supplemental Retirement Annuity (SRA) and Tax Deferred Annuity (TDA) Contribution Limits for 2013

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.

Background

Pursuant to IRS Regulations, Section 403(b):

  • The regular annual contribution amount will increase to $17,500 for 2013.
  • An additional deferment is available to employees 50 and over. These employees can defer up to $5,500 in catch-up contributions in addition to their regular contribution amount for a combined total contribution limit of $23,000 in 2013.
  • An additional deferment is also available to 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 $26,000 in 2013.

Effective Dates

Administrative paychecks dated January 2, 2013
Institution paychecks dated January 10, 2013

Affected CUNY Employees

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

  Deduction Code   Narrative Description
 
403
Supplemental Ret Ann CUNY
 
413
NBE Tax Deferred Annuity
 
414
NYT Tax Deferred Annuity
 
417
HRC TDA
 
419
CUNY TDA Copeland


Affected SUNY Employees

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

  Deduction Code   Narrative Description
 
404
Supplemental Ret Annuity Prog
 
408
SUNY TDA Fidelity
 
415
SUNY Tax Deferred Annuity


Affected Education Department, School for the Blind and School for the Deaf Employees

  Deduction Code   Narrative Description
 
432
ED TDA Copeland 

 

OSC
Actions

In order to help prevent employees from making excess 403(b) deferrals in 2013, OSC will insert a new effective-dated row using the beginning date of the first pay period of 2013 for employees who have an active SRA or TDA deduction and whose status is Active, Paid Leave or Leave Without Pay.

The new effective-dated row will reflect:

  • The employee’s current biweekly deferral election.
  • The regular maximum contribution amount of $17,500 for 2013 in the Goal Amount field.
  • A beginning contribution balance of zero (0) for 2013 as reflected by the blank Goal Balance field.

OSC will terminate all active SRA and TDA deductions for employees whose status is Retired, Terminated or Deceased by end dating the deduction.

Agency Actions

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 14, 2012 for Administration agencies and on or about December 21, 2012 for Institution agencies.

Agency Processing Instructions to Change Existing Deductions or Start New Deductions

If a change to the employee’s current deduction or Goal Amount for 2013 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 14, 2012 for Administration agencies and December 21, 2012 for Institution 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 2013 under the 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 2013 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.

In order to prevent employees from making excess 403(b) deferrals in 2013, agencies should not enter or change the Goal Balance Amount under any circumstances.

Questions

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