New Jersey Division of Pensions and Benefits

CONTRIBUTION LIMITS FOR SUPPLEMENTAL PLANS

Increased contribution limits for deferred compensation and tax sheltered annuity plans	Contribution limits for the following calendar years will be: $14,000 in 2005 $15,000 in 2006 State deferred compensation plan limitations of 25% of compensation is increased to 100% of compensation not to exceed the applicable dollar limit shown above.
Indexed increases to contribution limits after the maximum limit is reached*	Increases are indexed tot he consumer price index in multiples of $500 over $15,000 for years after 2006. Effective after December 31, 2006
Increased deferred compensation 'catch up' contributions*	In the 3 years prior to designated normal retirement age, the 'catch up' amount is double the applicable contribution amounts. For example, the 'catch up' amount in 2005 will be $28,000.
Increased contributions for persons approaching retirement in deferred compensation and tax sheltered annuity plans.	For persons aged 50 or older, increased contribution amounts above the applicable deferral limits are as follows: addition $4,000 for 2005 addition $5,000 for 2006
*Deferrals for participants eligible for age 50 'catch up' while participating in normal 'catch up' will be based on that which is most advantageous.

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Division of Pensions and Benefits
PO Box 295
Trenton, NJ 08625-0295

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Last Updated: March 2, 2005