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.