STATE EMPLOYEES
RETIREMENT COMMISSION
COMPTROLLER'S SEAL STATE OF CONNECTICUT 55 ELM STREET
HARTFORD, CONNECTICUT
06106-1775
TELEPHONE: (860) 702-3480
TELEFAX:(860) 702-3489
MEDICAL EXAMINING BOARD
for DISABILITY RETIREMENT
HEALTH CARE COST
CONTAINMENT COMMITTEE
STATE OF CONNECTICUT
RETIREMENT AND BENEFIT SERVICES DIVISION
OFFICE OF THE STATE COMPTROLLER

MEMORANDUM NO. 2002-08a 

July 10, 2002 

TO THE HEADS OF ALL STATE AGENCIES

ATTENTION: Personnel and Payroll Officers, Chief Administrative and Fiscal Officers and Business Managers
SUBJECT: Revision to Memorandum 2002-08, Contribution Limits for Deferred Compensation and Tax Sheltered Annuity Plans

I. INTRODUCTION

The purpose of this memorandum is to advise of the revised contribution limits applicable to Internal Revenue Code ("IRC") Section 457, which governs the State of Connecticut Deferred Compensation Plan.

II. BACKGROUND

In March, the Job Creation and Worker Assistance Act of 2002 (JCWAA) was signed into law. JCWAA includes technical corrections to the recently enacted Economic Growth and Taxpayer Relief Reconciliation Act (EGTRRA). Specifically, JCWAA increases the contribution limits under IRC Section 457 retroactive to January 1, 2002, to the extent that they are now aligned with other similar plans. Contribution limits under IRC Section 403(b) are unchanged by JCWAA.

III. DISCUSSION

A. Revised Deferred Compensation IRC Section 457 Contribution Limits
 
Effective January 1, 2002, the annual dollar limit for current and future contributions to Section 457 plans is the lesser of the dollar amount specified in the Maximum Annual Contribution Limit Table (see below) or 100% of gross salary (previously 50% of taxable salary).
 
B. Maximum Annual Contribution Limit Table
Year Maximum Annual Contribution Limit
2002 $11,000
2003 $12,000
2004 $13,000
2005 $14,000
2006 $15,000
2007 and after Indexed for inflation, in $500 increments

IV. CONCLUSION

Questions related to this memorandum may be directed to the Retirement & Benefit Services Division, Employee Benefits Unit at (860) 702-3543. Participants should contact their Financial Services Organization representative for assistance with establishing personal limitations.

NANCY WYMAN
STATE COMPTROLLER

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