|55 ELM STREET
Telephone: (860) 702-3480
|HEALTH CARE COST
|STATE OF CONNECTICUT
OFFICE OF THE STATE COMPTROLLER
HEALTHCARE POLICY & BENEFIT SERVICES DIVISION
|ATTENTION:||Human Resource, Benefit and Payroll Officers|
|Participants in the 457 and 403(b) Plans|
|SUBJECT:||State of Connecticut 457 and 403(b) Plan Contribution Limits for Calendar Year 2015|
Contributions to our voluntary retirement savings plans, the State of Connecticut 403(b) and 457 Plans, are limited by the Internal Revenue Code and are subject to annual adjustment. This memorandum sets forth the annual limits for calendar year 2015, as recently announced by the Internal Revenue Service (IRS) and provides guidance to employees about increasing or modifying current contribution amounts. Agencies are urged to share this information with their employees.
II. CONTRIBUTION LIMIT FOR 2015
The maximum amount an individual can contribute to the 403(b) or 457 Plan for calendar year 2015 is $18,000. This applies to all 2015 contributions to a plan (pre-tax, post-tax or a combination of the two). Employees eligible for both the 403(b) and 457 Plan are able to contribute up to the 2015 maximum amount to each Plan. The minimum contribution amount is $20 per pay period for the 457 Plan and $200 annually for the 403(b) Plan.
III. AGE 50+ CATCH-UP CONTRIBUTION LIMIT
An Employee who has made the maximum 2015 contribution limit and will be age 50 or more by the end of calendar year 2015 can elect to contribute an additional catch-up contribution of up to $6,000, for a total of $24,000.
IV CONTRIBUTION CHANGES
Employees already enrolled in the 403(b) or 457 Plan can increase, decrease or suspend contributions by completing a new Participation Agreement Form (457 Plan) or a new Salary Reduction Agreement Form (403(b) Plan). These forms can be found under the Plan Highlights (Forms) tab on the plans' dedicated website, www.ctdcp.com.
For the 457 Plan only; enrolled members can also make contribution changes online. To use the online option, log into your account under the Account Login tab at www.ctdcp.com and choose "Change Contributions" under the Account tab. Individuals electing the Age 50+ Catch-Up option for the first time must complete a paper Participation Agreement Form in order to select a Normal Retirement Age and indicate the year they will reach that age.
Any contribution change, whether electronic or paper, must be received by Voya before the Cut-Off Date listed on the attached Payroll Cut-Off schedule, also posted on the www.ctdcp.com website. All completed forms should be given to a Voya representative or be mailed to:
Employees who are not enrolled in the plan, should go to the www.ctdcp.com website and click on the "how to enroll" tab under the respective plan.
Annual contribution amounts are monitored to ensure that employees do not exceed the annual IRS limits. Please call Voya at 1-800-784-6386 option #4 or log onto our dedicated web site -www.CTDCP.com for more information. You can also contact the Employee Benefits Unit at 860-702-3543 or email@example.com for assistance.
Very truly yours,
THOMAS C. WOODRUFF, Ph.D.
Attachment: Payroll Cut-off Date Schedule 4th Quarter 2014 and 2015 Plan Year
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