STATE OF CONNECTICUT
THE STATE COMPTROLLER
55 ELM STREET
HARTFORD, CONNECTICUT 06106-1775
COMPTROLLER'S MEMORANDUM NO. 2007-04
February 5, 2007
TO THE HEADS OF ALL STATE AGENCIES
|Attention:||Personnel and Payroll Officers, Chief Administrative and Fiscal Officers, and Business Managers|
|Subject:||State of Connecticut Roth 403(b) Plan|
Pursuant to the provisions of the Economic Growth and Tax Relief Reconciliation Act of 2001, the Office of the State Comptroller (OSC) will now offer, under the State of Connecticut Defined Contribution Plans, a Roth 403(b) Plan (Plan). This Plan will allow eligible State of Connecticut employees to contribute after-tax dollars to the State's new Plan.
In that connection, the purpose of this Memorandum is to (1) announce the commencement of the Plan; (2) present its components; and (3) discuss issues pertaining to implementation and administration.
The Plan is an employer-sponsored, retirement supplement, similar to the
State of Connecticut 403(b) Plan, which pursuant to federal law is only
available to state educational employees and certain government hospital
employees. As a general rule, employees of the following state agencies are
eligible to participate in the Program: (1) University of Connecticut, including
the University of Connecticut Health Center; (2) State Universities, including
the Board of Trustees; (3) Community-Technical Colleges, including the Board of
Trustees; (4) Department of Higher Education; (5) Department of Education,
including the Vocational-Technical High Schools; (6) Department of Correction,
Unified School District No.1; (7) Department of Children and Families, Unified
School District No. 2; (8) Department of Mental Retardation, Unified School
District No. 3.; and (9) Department of Mental Health and Addiction Services,
Connecticut Valley Hospital, Cedarcrest Hospital, Greater Bridgeport Community
Mental Health Center and Connecticut Mental Health Center.
A. Tax Sheltered Annuity IRC Roth 403(b) Contribution Limits
Effective January 1, 2007, the annual dollar limit for contributions to Roth 403(b) plans increased from $15,000 to the lesser of $15,500 or 100% of gross salary.
Inasmuch as the coordination of benefits between the 403(b) Plan and the Roth 403(b) Plan is applicable, participants in the Plan may contribute up to the maximum in aggregate across both plans.
B. Age-50 Catch-up Contributions
The Age-50 Catch-up contribution is available to participants who are age 50 or older by December 31st. Effective January 1, 2007, the annual dollar limit for eligible participants remains at $5,000. Eligible participants in both a 403(b) plan and Roth 403(b) plan can make Age-50 Catch-up contributions up to the maximum in aggregate across both plans.
Participants electing Age-50 Catch-up who contribute to both the 403(b) plan and the Roth 403(b) plan are eligible to make a total maximum contribution of $20,500 in aggregate across both plans.
For further information pertaining to plan limits see Comptroller's Memorandum 2006-37.
Participant inquiries relating to Plan information such as but not limited to, plan information, enrollment, establishing contribution limits, must be addressed to the State's third party administrator, ING, by calling 1-800-584-6001. The OSC will insert a Plan announcement in employee paychecks dated February 16, 2007 (attachment) which will detail the State's Defined Contribution Plans. In addition, eligible participants may also be directed to the defined contribution plans web site at www.CTdcp.com.
Participant inquiries relating to Plan information may be directed to the State's plan administrator at 1-800-584-6001. Questions related to this memorandum may be directed to the Retirement & Benefit Services Division, Employee Benefits Unit at (860) 702-3543.
Very truly yours,
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