Information by Employer Task

Maximum Deferral Amount Increased for Deferred Compensation Plan

The dollar deferral limit for the NJ State Employees Deferred Compensation Plan has been increased from $8,500 to $11,000 for 2002. The ‘percentage of compensation’ limit was also increased from 25% to 50% of salary. Therefore, the maximum a participant may normally contribute to the Deferred Compensation Plan is the lower of 50% of their qualified salary or $11,000.

If you are at least 50 anytime in 2002, you will be able to contribute an additional $1000 under a new provision to the tax law. For this group of individuals, the maximum contribution increases from $11,000 to $12,000 for 2002.

Employees who wish to defer the maximum allowable in 2002, but whose current authorized deferral percentage will not allow them to reach that maximum, should complete a Change Request form and submit it to their Human Resource Representative. You may obtain the form from your Human Resource office or by calling the Deferred Compensation office at (609) 292-3605. If you haven’t joined the Plan yet, perhaps now is a good time for you to do so.

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The open enrollment period for the State of New Jersey Long Term Care Insurance Plan begins on March 1 and ends on May 31, 2002. Enrollment is open to virtually all State employees, including part-time, intermittent, and seasonal employees, and to an extensive list of their relatives.

Information sessions, conducted by representatives of Prudential Insurance Company, the Plan Administrator, will be held during the open enrollment period. Be on the lookout for announcements on the date, time and location of an informational session near you. Call Prudential's Long Term Care Insurance Customer Service Center at 1-800-732-0416 for details on the plan and to request an enrollment kit. You can also link to information about this important coverage through the Division of Pensions and Benefits Web site at http://www.state.nj.us/treasury/pensions under Hot Topics. When contacting Prudential about this program, give the State of New Jersey as your employer, rather than the Department in which you work.

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Are you interested in an easy way to save for your retirement?

The NJ State Employees Deferred Compensation Plan provides you with a way to invest part of your salary, through payroll deductions, in stocks, bonds, or money market funds. Deductions are made from your paycheck and, as a result of recent changes to the Plan, you may enroll with as little as 1% of your pay being deferred.

It is an easy way to build a nest egg for your retirement. For more information, speak with your Human Resource Representative or call a Deferred Compensation Plan Representative at the Division of Pensions and Benefits -- (609) 292-3605.

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Are you taking full advantage of all your payroll savings tools?

The NJ State Employees Deferred Compensation Plan allows you to tax defer up to 50% of your pay, to a maximum of $11,000 per year (more in some cases). But you do not have to defer the maximum to benefit from this program. Consider this example. If you contributed as little as $25 per payroll period and your investment earned an average of 5%* per year, at the end of 10 years you could accumulate just over $8,400. Contribute that same $25 for 20 years and you could have $22,300. All this is possible with an investment of less than $2 a day!

For more details, speak with your Human Resource Representative or call a Plan Representative at the Division of Pensions and Benefits -- (609) 292-3605.

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April 15^th has passed - are you suffering from tax shock? Interested in a way to cut your federal income tax bill next year and have a better lifestyle when you retire?

The NJ State Employees Deferred Compensation Plan allows you to tax defer a portion of your pay. You do not pay Federal income tax on the amount you defer until it is distributed from the Plan, usually after your retirement. In addition, any earnings on your investments in the Plan are also tax deferred. For more details, speak with your Human Resource Representative or call a Deferred Compensation Plan Representative at the Division of Pensions and Benefits -- (609) 292-3605.

"THE OPEN ENROLLMENT FOR THE NEW JERSEY STATE EMPLOYEES TAX SAVINGS PROGRAM (TAX$AVE) FOR TAX YEAR 2003 (JANUARY 1 - DECEMBER 31, 2003) BEGINS SEPTEMBER 13 AND RUNS THROUGH OCTOBER 31. YOU SHOULD HAVE RECEIVED WITH THIS PAYCHECK, THE TAX$AVE 2003 NEWSLETTER, A FLEXIBLE SPENDING ACCOUNT (FSA) PAMPHLET, AND A PREMIUM OPTION PLAN PAMPHLET. IF YOU DID NOT RECEIVE THESE DOCUMENTS, CONTACT YOUR BENEFITS ADMINISTRATOR. PARTICIPATION IN A TAX$AVE FSA MUST BE RENEWED EACH YEAR, SO YOU HAVE TO ACT IF YOU WANT TO RECEIVE THE BENEFITS OF THIS PROGRAM."

A REMINDER THAT THE 2003 ANNUAL OPEN ENROLLMENT PERIOD FOR THE STATE HEALTH BENEFITS PROGRAM (SHBP) AND THE NEW JERSEY STATE EMPLOYEES TAX SAVINGS PROGRAM (TAX$AVE) RUNS THROUGH OCTOBER 31. YOU CAN ENROLL IN OR CHANGE HEALTH, PRESCRIPTION DRUG, AND DENTAL PLANS OR ADD DEPENDENTS DURING THIS PERIOD. ANY SHBP CHANGES YOU MAKE WILL BE EFFECTIVE ON DECEMBER 28, 2002. UNDER TAX$AVE, YOU MAY SET ASIDE PRE-TAX MONEY FOR ELIGIBLE, UNREIMBURSED MEDICAL, DENTAL, PRESCRIPTION DRUG, AND DEPENDENT CARE EXPENSES. SINCE PARTICIPATION IN TAX$AVE MUST BE RENEWED ANNUALLY, YOU MUST ACT IF YOU WANT TO PARTICIPATE IN THE FLEXIBLE SPENDING ACCOUNTS. SEE YOUR BENEFITS ADMINISTRATOR IF YOU HAVE QUESTIONS.

THERE ARE ONLY A FEW DAYS LEFT IN THE 2003 STATE HEALTH BENEFITS PROGRAM (SHBP) AND NEW JERSEY STATE EMPLOYEES TAX SAVINGS PROGRAM (TAX$AVE) ANNUAL OPEN ENROLLMENT PERIOD. THE OPEN ENROLLMENT, WHICH CLOSES ON OCTOBER 31, WILL NOT OCCUR AGAIN UNTIL NEXT FALL. IF YOU HAVEN'T ALREADY DONE SO, PLEASE REVIEW THE LITERATURE THAT YOU RECEIVED ON THESE EMPLOYEE BENEFIT PROGRAMS. IF YOU WISH TO CONTINUE YOUR TAX$AVE FLEXIBLE SPENDING ACCOUNT PARTICIPATION NEXT YEAR - IN EITHER THE UNREIMBURSED MEDICAL EXPENSE SPENDING ACCOUNT OR THE DEPENDENT CARE SPENDING ACCOUNT - YOU MUST ACT SINCE THESE PROGRAMS DO NOT CONTINUE AUTOMATICALLY. SEE YOUR BENEFITS ADMINISTRATOR IF YOU HAVE QUESTIONS.