The New York State Governor’s Office of Employee Relations (GOER) has provided the following information to state employees about the SUNY Tax-Deferred Retirement Savings Program.
New Paltz employees can learn more about this program on the Office of Human Resources, Diversity & Inclusion’s website.
How much may I contribute to my Deferred Compensation account from my paycheck?
You may defer up to $19,500 from your salary in 2020. Salary deferrals are made as a percentage of your salary from 1-100% of your includible compensation.
Can I change my deferral amount?
Yes. You may increase, decrease or suspend your deferral rate by calling the HELPLINE at 1-800-422-8463 or by accessing the Transaction section of the Plan Website at: www.nysdcp.com. All changes will be implemented as soon as possible in the month following the month you make the request. However, because of payroll timeframes, your deferral change may not occur for up to two payrolls.
Are there any times when I can defer more to my Plan account?
Yes, there are three time periods when you can defer more to the Plan than the regular contribution limits would allow.
- If you are age 50 or over or will become age 50 during 2020, you may defer an additional $6,500 through the Age 50 and Over Catch-Up provision. The ability to make additional deferrals through the Age 50 and Over Catch-Up is available to you every year you are at least 50 years old, except the years in which you are making Retirement Catch-Up deferrals. However, if the maximum deferral permitted under the Age 50 and Over Catch-Up provision is greater than your Retirement Catch-Up amount, you may make deferrals up to the Age 50 and Over Catch-Up maximum deferral.
- The second time period you may make deferrals in excess of the regular deferrals is during your Retirement Catch-Up period. Retirement Catch-Up deferrals may be made during the three consecutive calendar years prior to your Retirement Catch-Up Age. Your Retirement Catch-Up Age is an age that you choose that is no earlier than the year during which you may retire under your employer’s retirement plan without a reduction in benefits. Retirement Catch-Up Age may be no later than the year in which you turn 70.5. If you are a police officer or a firefighter, Retirement Catch- Up Age may be no earlier than age 40. The amount you may defer through the Retirement Catch-Up provision is the difference between the amounts you were eligible to defer while an employee of the State or a Participating Employer and your actual deferrals to the Plan. In 2020, you may contribute up to an additional $19,500 dependent upon your Retirement Catch-Up amount. Assistance and paperwork are required to determine the exact amount you are permitted to defer under this special Retirement Catch-Up rule.
- There is also a special provision for individuals who are called away from their regular job to perform duty in the United States military. If you return to your employer after a period of qualified military service, you will have a limited right to make up deferrals to the Plan that you could have made if you had been working for your regular employer. Please call the HELPLINE at 1-800-422- 8463 and speak to a HELPLINE Representative for assistance.
Information Source: The Self-Help Guide to Pre-Retirement Planning, Chapter 8.
Get more pre-retirement planning information from the GOER online.
