Retroactive Salary Increases and Deferred Compensation Deferrals
Management Confidential employees who are eligible for performance advances that were withheld in 2003 will receive retroactive salary payments in their March 22, 2006 (Administration payroll) or March 30, 2006 paycheck (Institution payroll). M/C employees who are making deferrals to the New York State Deferred Compensation Plan should be aware that the deferral percentage on record with the Deferred Compensation Plan will apply to those paychecks as if it were an ordinary paycheck. For example, an M/C employee who is deferring 5% of salary on a biweekly basis will have that 5% deferral rate applied to the March 22nd or March 30th paycheck. Therefore, deferrals will be taken from ordinary pay and the retroactive pay contained in that check.
If you want to make any changes to your Deferred Compensation Plan to be effective for your March 22nd or March 30th paycheck, you must act quickly. Employees who will be paid on the March 22nd administrative payroll must notify the Deferred Compensation Plan of any deferral changes no later than March 8th to be effective for that payroll. Employees who will be paid on the March 30th institutional payroll must notify the Deferred Compensation Plan of any deferral changes no later than March 15th to be effective for that payroll.
Call the Plan HELPLINE at 800-422-8463 if you want to increase or decrease your deferral rate for these payrolls and identify yourself as an M/C employee. Deferral changes can be done over the phone and programmed to apply to the March 22nd or March 30th payrolls only or for all future payrolls. Be specific when talking to a HELPLINE Representative. Tell them you are getting a retroactive payment. Plan HELPLINE Representatives are available from 8 AM until 11PM on weekdays and from 8 AM to 6 PM on Saturdays.
The maximum amount that an employee can defer to the Deferred Compensation Plan in 2006 is $15,000. The State Payroll system automatically limits payroll deferrals at the $15,000 level.
Are You Eligible to Save More?
two instances when an employee may defer more than the general $15,000 deferral
limit. Employees who are or will be at least 50 years old by December 31, 2006
may defer an extra $5,000 in 2006 (for a combined total of $20,000). If you are
eligible and not enrolled in this program and want to make these extra
deferrals, contact the Plan HELPLINE at 800-422-8463 for an application form.
Employees who are within 3 years of retirement with full benefits (for example, Tier 1 members who will be 55 in 2009 or before, Tier 2, 3 and 4 members who will have at least 10 years of service and be 62 in 2009 or before, and Tier 2, 3, or 4 members who will have at least 30 years of service and will become 55 in 2009 or before) may participate in Retirement Catch-Up. The Retirement Catch-Up program allows employees to make up for contributions that could have been made in past years but were not. Depending on the employee's amount of "underutilized deferrals," an employee may defer up to an additional $15,000 in 2006. If you want to determine your eligibility for the Retirement Catch-Up and your “underutilized deferrals” contact the Plan HELPLINE at 800-422-8463.
You may not make deferrals under both the Age 50 and Over and the Retirement Catch-Up programs at the same time.