Employees enrolled in the NC Public Employee Deferred Compensation Plan (457 plan) who are within three years of normal retirement age, may be able to use the 457 plan's unique "regular" catch-up contribution and contribute more than the normal standard contribution. The "regular" catch-up contribution is not age specific. Three years before retirement an employee may elect to contribute twice the normal maximum amount allowed. Employees over 50 may not use the "regular" catch-up and age 50+ catch-up in the same year.

The system monitors the contribution limits for employees and prevents them from over contributing. When an employees elects the "regular" catch-up contribution", the Benefits Administrator will need to create an IT0015 - Additional Payments with Wage Type "/PCU" to record the allowable amount. The employee will work directly with the deferred compensation vendor to determine the amount allowed. The deferred compensation vendor will notify the Service Center so the amount can be recorded in the system.

For example, the employee's regular catch-up contribution amount is $22,000. Create an Additional payment for /PCU wage type with $22,000 and if the employee utilizes only $10,000 in a year the system will take care of the remaining amount and forward to the following year.

Also, the Benefit Administrator wil update IT0041 Date Specficiations by creating a date type "NR" (Normal Retirement) with the expected date the employee plans on retiring.  The vendor will supply this information on the same form along with the "regular" catch-up contribution amount.