A valuable benefit available to all employees is supplemental retirement savings on a pretax basis through two plans: the Tax-Deferred Investment (TDI) plan through TIAA-CREF and the Deferred Compensation Plan (DCP) through the state Department of Retirement Systems (DRS). The IRS maximum annual limit has increased for 2007 to $15,500 and to $20,500 for employees age 50 and over.
These limits apply to voluntary before-tax savings. The maximum deferrals are limited to 100 percent of compensation.
If you are a faculty or administrative professional employee participating in the WSU Retirement Plan (WSURP), you will need to subtract your voluntary contributions to that plan to determine how much you can contribute.
If you are a classified or civil service employee participating in PERS, your contributions are not considered voluntary, so you will be able to contribute up to the maximum amount allowed.
If you are age 50 or older and have elected to increase your contributions from 7.5 percent to 10 percent in the WSURP, the additional 2.5 percent is considered voluntary. For example: You’re an AP or faculty employee, age 50, and your 2007 annual compensation is $50,000. You have elected to increase your contributions to the WSURP from 7.5 to 10 percent.
To determine how much you can contribute to the TDI plan, subtract $1,250 (2.5 percent of $50,000) from your 2007 limit, $20,500. In this case the maximum contribution allowed to the TDI plan would be $19,250 ($20,500 -$1,250 = $19,250).
It is your responsibility to ensure that you do not contribute more than the maximum amount allowed.
If you want to change the contribution in your TDI, you need to provide Human Resource Services with a new Salary Reduction Agreement. This agreement can be found at www.hrs.wsu.edu/utils/file.aspx?fileid=1109. For information on how to change your contribution amount with the DCP, visit https://dcp.csplans.com.
If you would like additional information or have questions regarding these plans, contact Human Resource Services at 335-4521.
