Our records indicate you are participating in a 403(b) and/or a 457(b) Tax Deferred Compensation  (TDC) option with one of the approved NIU 403(b) TDC vendors or 457(b) options provided by Central Management Services.  The Economic Growth and Tax Relief Reconciliation Act of 2001 establishes maximum standard contribution limits for each calendar year.  In calendar year 2009, the annual contribution limit is changing from the current $15,500 to $16,500 for both programs.  If you are age 50 or older you are eligible for the “catch-up” provision which will allow you to defer an additional $5,500 annually, making the annual maximum $22,000 for each program.  Based on IRS guidelines the Human Resource PeopleSoft System will automatically determine if you are age 50 or older and adjust your yearly allowable maximum to $22,000 for 2009.  However, it is the employee’s responsibility to determine their appropriate semi-monthly TDC contribution and at their option to utilize the IRS annual maximums.  Any change in contribution amounts for 2009 will require completion of the appropriate forms to change your deduction effective January 1, 2009.   To change your semi-monthly tax deferred compensation payroll deduction in time for the beginning of 2009, please refer to the locations listed below with the appropriate deadline dates. 

Plan                Location of Change Form                                        Deadline Date to HRS for the

1/1/09 Payroll Period

403(b)              http://www.hr.niu.edu/resources/forms.cfm                           12/12/08

457(b)              http://www.hr.niu.edu/resources/forms.cfm                                    11/21/08

If you wish to obtain copies of the TDC contribution change forms or if you have any additional questions regarding your 403(b) and/or your 457 TDC, please feel free to contact Marlene Bryant at 753-6000 or through e-mail at mbryant@niu.edu.

In July, 2007, the Internal Revenue Service (IRS) and the U.S. Treasury Department released new regulations under the Section 403(b) of the Internal Revenue Code (the “Code”), which will be effective to 403(b) plans January 1, 2009.  NIU is in the process of developing new policies and procedures in the 403(b) plan in compliance with the new IRS regulations.  Additional information regarding the new policy and procedures will be forthcoming in the near future.