Human Resources
Retirement Investors' Club (RIC)
Contributions to the 457
If you participate in the Retirement Investors' Club (RIC), contributions are automatically made (in the amount you choose) to your 457 employee contribution account through payroll deduction. Deductions from your paycheck are made before state and federal income tax. Deductions can be taken from up to 24 paychecks per year (no deductions from the third paycheck in a month). You may change the amount you are contributing at any time.
You may choose to contribute the minimum of $25 a month ($12.50 per pay period) or as much as the maximums shown below (terminating employees have the option to defer sick and vacation pay up to the IRS maximum limit). You may choose to have your total monthly deduction taken from your 1st paycheck of the month, the 2nd paycheck of the month or equally divided between the 1st and 2nd paycheck each month.
Participants age 50 or turning age 50 this year or older, may contribute an additional amount known as the 50+ Catch-Up (amounts shown below). The 50+ Catch-Up limit is automatic due to your age. Closer to retirement, if qualified, you may have the ability to save over the IRS regular maximum by taking advantage of the 3-Year Catch-Up limit .
IRS Contribution Limits
| Year | Regular Contribution Limits |
50+ Catch-Up** Contribution Limits |
3-Year Catch-Up*** Contribution Limits |
|---|---|---|---|
| The lesser of 100% of compensation* or: | For participants age 50 or older, the regular limit is increased by $5,000: | The total of the regular limit plus amount of missed contributions up to: | |
| 2008 | $15,500 | $20,500 | $31,000 |
| 2009 | $16,500 | $22,000 | $33,000 |
* Compensation is your gross salary minus your retirement (IPERS, POR, Judicial) deductions. The maximum amount you may contribute is reduced by deductions for FICA, and may be reduced by insurances, flexible spending accounts, auto use maintenance, employee organizations, and assignments.
** Participants are not able to use the 50+ Catch Up limits and the 3-Year Catch-Up limits at the same time.
*** If you are within three years of your normal retirement date, you may qualify to contribute more than the regular maximum under the program's 3-Year Catch-up Provision.
All contributions and earnings stay tax deferred until you take the money out as income anytime after you terminate from State employment.
Please Note: The total of all contributions made to this 457 plan and/or any other government employer's eligible 457 plan in 2008, must not exceed the IRS maximum limit of $15,500 ($20,500 for employees age 50 or older and $31,000 for 3-Year Catch-Up participants).