STATE OF CONNECTICUT
THE STATE COMPTROLLER
55 ELM STREET
HARTFORD, CONNECTICUT 06106-1775
MEMORANDUM NO. 2005-01
January 3, 2005
TO THE HEADS OF ALL STATE AGENCIES
|ATTENTION:||Personnel and Payroll Officers, Chief Administrative Officers, Business Managers|
|SUBJECT:||State of Connecticut 403(b) Program|
Pursuant to Connecticut General Statutes Section 5-264, the Office of the State Comptroller (OSC) will transfer and centralize the responsibility for payroll reduction maintenance of the 403(b) Program (Program) to the Retirement & Benefit Services Division's, Employee Benefits Unit (EBU).
The Program is an employer-sponsored, tax-sheltered retirement supplement, similar to the Connecticut Deferred Compensation (457) Plan. However, unlike the 457 Plan, which is open to all employees, pursuant to federal law, the Program is available only to state educational employees. As a general proposition, 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; and (8) Department of Mental Retardation, Unified School District No. 3.
Comptroller's Memorandum 2002-27 announced significant changes to the State of Connecticut 403(b) Program. On November 23, 2004 the OSC issued a Request For Proposal (RFP) designed to further reform and enhance the Program. In that connection, the OSC will transfer the responsibility of payroll reduction maintenance of the Program to the EBU effective during the biweekly pay period from January 7, 2005 to January 20, 2005 (check date: February 4, 2005). Accordingly, agencies will no longer be required or permitted to maintain payroll reductions.
Agencies are advised that:
1. Access to the Program's deduction codes (TSAFD2, TSAFD1, TSAING, TSAHTF, TSATIA, TSAOHM, TSATRV) will be restricted beginning with the biweekly payroll period of January 7, 2005 to January 20, 2005 (check date: February 4, 2005). The Payroll Services Division will no longer accept deduction override transactions for the aforementioned deduction codes. Contact the EBU at (860) 702-3543 for assistance and override processing.
2. Access to the Program's deduction limit tracking and goal amounts will also be restricted beginning with the biweekly payroll period of January 7, 2005 to January 20, 2005 (check date: February 4, 2005). Individual participant contribution limits will be tracked centrally at the EBU.
3. Agencies will no longer accept CO-1091 Salary Reduction Agreement (New 7/2002) forms for the Program. The Program's Financial Services Organization's (FSO) have been made aware of this arrangement and will no longer deliver such forms to agencies. Agencies are instructed to advise employees attempting to deliver such forms that they must submit forms to their FSO who will coordinate delivery of the forms to the EBU.
4. Information for participants regarding Program procedural changes will be included with the 1st Quarter 403(b) Dollar Wise Newsletter available online in February 2005 at:
Additional information for participants relating to Program reform is available online at the following RFP question and answer link:
Participant inquiries relating to Program information such as how to enroll, change contribution amounts, contribution limits, etc. must be addressed to the FSO's directly. Contact information for the Program FSO's is attached to this memorandum. Questions related to the administration of the Program may be directed to the Retirement & Benefit Services Division, Employee Benefits Unit at (860) 702-3543.
Very truly yours,
STATE OF CONNECTICUT 403(b) PROGRAM
AUTHORIZED FINANCIAL SERVICES ORGANIZATIONS
I. Fidelity Investments
II. The Hartford
(800) 243-5868 - press option 1
III. ING Financial Advisors
IV. Oldham Resource Group
(888) 842-5350 - on weekdays
(800) 842-2888 - on weekends
VI. Travelers Life & Annuity
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