Office of Human Resources
Insurance
INSURANCE
TERMINATION OF EMPLOYMENT AND INSURANCE BENEFITS
PARTICIPATING PHYSICIANS, HOSPITALS, AND PHARMACIES
DEFERRED COMPENSATION
EFFECTIVE JANUARY 1, 2003 *
The percentage of compensation limitation for 401(k) and 403(b) plans is the lesser of 100% of total compensation or $12,000 per year. (Please note that the maximum you can contribute between the 401(k) and 403(b) plan is $12,000.) The 457 has been increased to 100% of adjusted gross. {Gross less Retirement System, Sec. 125 (health insurance related), 401(k) and 403(b) contributions.}
Normal elective deferral limits for 457, 401(k) and 403(b) are as follows:
2003 - $12,000 2005 - $14,000
2004 - $13,000 2006 - $15,000
Those who are age 50 or older can catch up an additional amount per year. The maximum contribution limits for the 457, 401(k), and 403(b) plans are as follows:
2003 - $2,000 2005 - $4,000
2004 - $3,000 2006 - $5,000
If you are within 3 years of being eligible to retire, the catch-up limit for the 457 plan will be twice the normal elective deferral limit. Only the 457 plan has this option. If you have catch up available, you could defer as much as $24,000 in the 457 plan and an additional $14,000 in either the 401(k) or 403(b) {or combination of both} for a total of $34,000. You cannot contribute to both the over-50 catch-up provision of the 457 plan and the 3-year catch-up provision of the 457 plan.
401(k), 457 AND 403(b) CAN BE ROLLED OVER TO THE S. C. RETIREMENT SYSTEM TO PURCHASE SERVICE CREDIT TIME.
* These maximums go up every year through 2006.
THE LANGUAGE USED IN THIS DOCUMENT DOES NOT CREATE AN EMPLOYMENT CONTRACT BETWEEN THE EMPLOYEE AND LANDER UNIVERSITY. THIS DOCUMENT DOES NOT CREATE ANY CONTRACTUAL RIGHTS OR ENTITLEMENTS. LANDER RESERVES THE RIGHT TO REVISE THE CONTENT OF THIS DOCUMENT, IN WHOLE OR IN PART. NO PROMISES OR ASSURANCES, WHETHER WRITTEN OR ORAL, WHICH ARE CONTRARY TO OR INCONSISTENT WITH THE TERMS OF THIS PARAGRAPH CREATE ANY CONTRACT OF EMPLOYMENT.
