The following chart illustrates EGTRRA changes effective January 1, 2002

Until the state tax law “conformity” issue is resolved, employees must follow the 2001 (pre-EGTRRA) maximum annual elective deferral limits for 2002, or until further notice. If the state tax issue is resolved to conform with EGTRRA, employees will have an opportunity at that time to adjust their elective deferrals to meet their retirement savings needs.

In accordance with tax year 2001 retirement plan guidelines, the maximum contribution limits for the 403(b), 401(k) and 457 plans are interrelated. Employees who participate in more than one plan in the same year are limited to the lowest maximum. Employees who wish to contribute to a 403(b) concurrently with a 401(k) or 457 must first obtain permission from the Savings Plus Program. The Savings Plus Program can be reached at (866) 566-4777 for more information.

PLAN	PLAN PROVISION
403(b)	2001 Annual Deferral Limit	Catch-up Provision
403(b)	The lesser of three limits apply: 1. 402(g) limit –$10,500 OR, 2. Maximum Exclusion Allowance (MEA) – 20% of taxable pay, times years of service, minus past contributions, OR 3. 415 limit –25% of adjusted gross pay.	IRC Section 402(g)(8) Catch-up Also referred to as the “15-year” catch-up. Permits certain long-term employees who have under-deferred in previous years to make additional contributions beyond the IRC Section 402(g) limit. Eligible employees may contribute an additional $3,000 per year beyond the maximum annual deferral limit. Applies only to the 403(b) plan.
401(k)	The lesser of $10,500 or 25% of adjusted gross pay.	None available.
457	The lesser of $8,500 or 33 1/3 percent of taxable pay.	IRC Section 457(b) Catch-up Permits eligible participants to make up for 457 contributions not made in previous years. Participants should contact the Savings Plus Program for additional information.
Multiple Plans	If employees contribute to both the 403(b) or 401(k) and the 457 in the same tax year, the maximum annual contribution is the lesser of $8,500 or 33 1/3 of taxable pay. The 403(b) and 401(k) $10,500 limit would not apply.

PLAN

PLAN PROVISION

IRC Section 402(g)(8) Catch-up

IRC Section 457(b) Catch-up

If employees contribute to both the 403(b) or 401(k) and the 457 in the same tax year, the maximum annual contribution is the lesser of $8,500 or 33 1/3 of taxable pay. The 403(b) and 401(k) $10,500 limit would not apply.