Heathcare policy & Benefit services division header


November 20, 2015

ATTENTION: Human Resource, Benefit and Payroll Officers and State Employees
Participants in the 457 Deferred Compensation and 403(b) Plans
SUBJECT: 2016 IRS Maximum Contribution Limits and the Need to Restart Contributions for Participants who met maximum limits during 2015


The purpose of this memorandum is to announce the 2016 limits for annual contributions to the State of Connecticut 457 Deferred Compensation Plan and the 403(b) Plan and to explain what participants who had their contributions stopped during 2015 because they reached the annual contribution limit must do to restart plan contributions in 2016. This is a change in procedure.


The amount that employees can contribute to the 457 or the 403(b) Plan each year is limited by the Internal Revenue Code. The Internal Revenue Service (IRS) recently announced that the contribution limits for 2016 will remain the same as those in effect for 2015. This means that the maximum amount an individual under the age of 50 may contribute to a 403(b) or 457 Plan during 2016 is $18,000. Employees who are at least age 50 by the December 31, 2016 tax year can contribute an additional $6,000.

The annual limit applies to pre-tax contributions, post-tax contributions or any combination of the two. Employees who are eligible for both the 403(b) and 457 Plans may contribute the 2016 maximum amount to each plan. The minimum contribution amount for the 457 Plan is $20 per pay period and $200 annually for the 403(b) Plan.


Previously, we used an internal system to stop an employee's 457 or 403(b) Plan contributions as soon as the IRS limit was reached during the calendar year. Under that system, the employee's deferral was automatically restarted the following January. This internal system will be discontinued as part of the CORE-CT upgrade. As a result, employees who had their contributions stopped in 2015 upon reaching the IRS maximum limit will now have to re-start their contributions to the 403(b) or 457 Plan for calendar year 2016.

Employees in the 457 Plan can restart their contributions online by following these instructions:

1) Log onto www.ctdcp.com
2) Click on 'access account'
3) Enter your userid and password
4) Under the 'go to' box select Contribution Rate
5) Next to your contribution amount, select 'change'
6) Enter your contribution amount
7) Click on "OK"
9) Review your new contribution amount
10) Select 'apply changes'
11) You'll receive your confirmation page with a tracking number.

Participants in the 403 (b) Plan will need to submit a paper form to restart their contributions in 2016. Prudential can also accept contribution changes and restarts for the 457 and 403(b) Plans by telephone. You can reach Prudential at 844-505-SAVE (7283). See the attached Payroll Cut-off Schedule for the applicable deadlines for submitting changes for paychecks in 2016.


Payroll and Human Resources Personnel are encouraged to provide this information to all employees. Employees who have questions regarding the 403(b) or 457 Plan should call Prudential at 844-505-SAVE (7283) or log onto www.CTDCP.com for more information. You may also contact the Employee Benefits Unit for assistance at 860-702-3543 or at osc.ebu@ct.gov.

Very truly yours,


Return to Index of 2015 Healthcare Policy & Benefit Services Division Memoranda
Return to Index of Comptroller's Memoranda
Return to Comptroller's Home Page