OFFICE OF STATE UNIFORM PAYROLL MEMORANDUM #98-40



December 30, 1997

To: All UPS Agencies
From: Ronald S. Mitchell, Director
Subject: Section 457 Deferred Compensation Contribution Change

Beginning January 1, 1998, the maximum allowable deferred compensation (TSLD and RT12) amount under Section 457 of the IRS Code has changed from $7,500 to $8,000 per year or 25% of your salary, whichever is less. The increase may allow contributors to tax shelter an additional $500 in contributions in 1998. This contribution change and the additional pay period in 1998 (27 pay periods in 1998) should be considered carefully by all employees participating in Deferred Compensation, because both can affect the employee's biweekly contribution amount. As last year, the catchup will remain $15,000 per year for those contributors who are within three years of retirement.

Employees requiring assistance in determining their biweekly contribution amounts or agencies with additional questions should contact Pat Bergeron of Deferred Compensation at (504) 926-8082 ext. 1001 or (800) 345-4699.

RSM:CPA:mpb


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