To notify Agencies of the following changes to Deferred Compensation rules, rates, and limits effective January 1, 2003.
- The yearly regular contribution amount for Deferred Compensation has been increased from $11,000 to $12,000.
- The Deferred Compensation "Catch Up" provision, available to employees in each of the last three years prior to normal retirement age, has been increased to $12,000, for a combined maximum total contribution of $24,000 for calendar year 2003.
- An additional deferment is now available to employees age 50 and over. These employees can defer up to $2,000 in addition to their regular contribution amount, for a combined total contribution of $14,000 in 2003. Employees cannot have both "Catch Up" and "50 and over" additional amounts deferred in the same year.
Employees who have elected or are electing the "50 and over catch up" must reapply each calendar year to receive this benefit.
Please note that the total contribution amount from any participant may not exceed 100% of net pay after all involuntary and voluntary deductions and required tax withholdings are taken.
Employees enrolled in the Deferred Compensation Plan.
Note: Employees who had Deferred Compensation deductions taken for the calendar year 2002 will automatically have their deductions continued or restarted at the 2002 deduction percentage for the calendar year 2003. Catch up amounts will not be continued for the 2003 calendar year unless a transaction is received from the Plan Administrator.
Institution checks dated 01/09/2003.
Administration checks dated 01/15/2003.
OSC will process a file from the New York State Deferred Compensation Plan's Administrative Service Agency each pay cycle that will start, change or cancel the deduction.
Questions regarding this bulletin may be directed to the Payroll Audit mailbox.
Employees with questions on their Deferred Compensation percentages and deductions should be directed to the New York State Deferred Compensation Plan's HELPLINE at (800) 422-8463.