Purpose:

The purpose of this bulletin is to notify agencies of the maximum contribution limits for employees enrolled in SRA and TDA plans and provide instructions for entering updates to these plans.

Background:

Pursuant to IRS Regulations, Section 403(b):

• The regular annual contribution amount will increase to $24,500.00 for calendar year 2026.
• An additional deferment is available to employees age 50 and over.
  • These employees may defer up to $8,000.00 of age 50 catch-up contributions in addition to their regular contribution amount for a combined maximum contribution limit of $32,500.00 in 2026.
  • Effective January 1, 2025, Section 109 of the Secure 2.0 Act increases the catch-up contribution limit for active participants turning ages 60, 61, 62, or 63 in the calendar year to either $10,000.00 or 50% more than the regular catch-up contribution limit, whichever is greater. This extended catch up amount is set to remain at $11,250.00 for 2026. These employees may defer a combined maximum contribution limit of $35,750.00.
• An additional deferment is also available to CUNY (NYT TDA code 414 only) employees qualifying for the 15-year catch-up.
  • These employees can defer up to $3,000.00 in addition to their regular contribution amount and age 50 catch-up for a combined maximum contribution limit of $35,500.00 in 2026. Employees aged 60-63 can defer a maximum contribution limit of $38,750.00 in 2026.
• Effective January 1, 2026, Section 603 of the Secure 2.0 Act states that participants who earned at least $150,000.00 in FICA wages in the prior calendar year must contribute their Over 50 Catch-up contribution as a Roth deduction.

Agencies must ensure the employees’ date of birth is correct within PayServ to ensure the age 50 catch-up and aged 60-63 extended catch-up limits are applied correctly.

Affected Employees:

CUNY employees electing one of the following deductions are affected:

SUNY employees electing the following deductions are affected:

Education Department, School for the Blind, and School for the Deaf employees electing the following deduction are affected:

Effective Dates:

Maximum contribution limits will be effective beginning in calendar year 2026.

OSC Actions:

OSC will update PayServ to reflect the maximum contribution limits for calendar year 2026.

PayServ will automatically complete the following processes:

• Stop SRA/TDA contributions when an employee reaches the maximum annual contribution limit based on the criteria mentioned in ‘Background’ section above.
• Calculate and assign the appropriate age 50 and over and age 60-63 extended catch-up amounts based on the employee’s date of birth in PayServ.
• Resume contributions on the first paycheck of the following calendar year.

Agency Actions:

Employees over the age of 50, or turning 50 within the calendar year, will have their age 50 catch-up limit automatically applied. Employees aged 60-63 will also have their extended catch-up limit automatically applied. If an employee chooses not to contribute the maximum amount for employees over age 50, their deferral election must be adjusted accordingly.

For SUNY Agencies:

Agencies should instruct their employees to log in to their Retirement@Work portal to set up a Salary Deferral Agreement with the Multi-Vendor Coordinator (MVC) that will transmit the file to OSC. The employee will initiate all starts, stops, and changes through Retirement@Work. The MVC will provide SUNY agencies with a weekly error report of transactions that were not processed by the automated file. It is the responsibility of the agency to manually enter these transactions. Agencies must enter updates in accordance with the current year Agency Submission Schedule. The effective date, labeled as the Deduction Begin Date on the Savings Plans panel, should always be the first day of the current, unconfirmed pay cycle.

To start or change the Flat Amount, the agency must insert a new effective dated row for the applicable SRA/TDA deduction in employees’ Savings Plans panel and update the Before Tax Investment/After Tax Investment reflecting employees’ new biweekly deferral election.

To stop the deduction, agencies must insert a new effective dated row for the applicable SRA/TDA deduction in employees’ Savings Plans panel and select Terminate on Coverage Election panel.

For New York State Education Department, School for the Blind, School for the Deaf, and CUNY agencies:

Agencies must update the Savings Plans page in accordance with the instructions below if an update to the employee’s SRA or TDA election for 2026 is necessary.

Note: Agencies must enter updates in accordance with the current year Agency Submission Schedule. The effective date, labeled as the Deduction Begin Date on the Savings Plans panel, should always be the first day of the current, unconfirmed pay cycle.

To start or change Flat Amount (for employees of the NYS Education Department, School for the Blind, and School for the Deaf) or the Percent of Earnings election (for employees of CUNY), the agency must insert a new effective dated row for the applicable SRA/TDA deduction in employees’ Savings Plans panel and update Before Tax Investment/After Tax Investment reflecting employees’ new biweekly deferral election.

To stop the deduction, agencies must insert a new effective dated row for the applicable SRA/TDA deduction in employees’ Savings Plans panel and select Terminate on Coverage Election panel.

Questions:

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