Your decisions regarding participation in the Traditional Catch-Up

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1 State of California Savings Plus Program 457 Deferred Compensation Plan traditional Catch-Up Booklet All information contained in this booklet was current as of the printing date. The Plan Administrator reserves the right to amend any of the procedures or plan provisions as outlined in this booklet or in the official Plan Document. Such changes may be enacted without prior announcement or the express consent or agreement of plan participants. The official Plan Document will govern if any contradiction arises between the terms of the official Plan Document and this booklet. Your decisions regarding participation in the Traditional Catch-Up provision of your 457 Deferred Compensation Plan (457 Plan) may be complex. The Traditional Catch-Up provision is only applicable to the 457 Plan. The Savings Plus Program (Savings Plus) cannot provide tax advice. Therefore, you may wish to obtain the advice of a tax advisor before submitting this request. This application contains the following information for your use: Important Information to Consider Before Submitting Your Request Eligibility and Participation Requirements Program Requirements Information and Instructions Traditional Catch-Up Application NRM-4120CA (1206) State of California

2 Important Information to Consider Before Submitting Your Request The Economic Growth and Tax Relief Reconciliation Act (EGTRRA) became law on January 1, EGTRRA increased contribution limits, repealed the coordination limits between the 457 plan and the 401(k)/403(b) plans, and added an Age-Based Contribution for participants age 50 and older. Coordination limits between plans Coordination limits for the 457 plan and the 401(k)/403(b) plans were eliminated. You may defer up to the maximum annual contribution limit to both plans. Age-Based Contribution Employees age 50 or older may increase their annual contribution on an incremental basis. You are not permitted to participate in Age-Based Contribution and Traditional Catch-Up in your 457 plan at the same time. However, you are permitted to make Age-Based Contributions to your 401(k)/403(b) plans and to participate in Traditional Catch-Up to your 457 plan at the same time (see Program Requirements on the next page). Tax Year 401(k)/403(b) Annual 457 Annual 401(k)/403(b) Age-Based 457 Age-Based Total 2007 $15,500 $15,500 $5,000 $5,000 $41, Increase in increments of $500 based on cost-of-living increases If you have questions, call (866) and press *0 to reach a customer service representative, Monday Friday, 8:30 a.m. 4:00 p.m. (PT). Eligibility and Participation Requirements To be eligible, you must meet all the following eligibility and participation requirements: You are a permanent employee with the State of California, the California State University system, the Senate Rules Committee, the Assembly Rules Committee, or the Joint Legislative Budget Committee. You were eligible to contribute to a 457 plan in prior tax years. You are within three years of Normal Retirement Age. You will not retire this year.

3 Program Requirements You may contribute up to twice the annual contribution amount to a 457 plan if you are eligible for Traditional Catch-Up as long as the Traditional Catch-Up portion does not exceed the amount you undercontributed to all plans in prior years. The chart below shows the 457 annual contribution limit by year using the Traditional Catch-Up provision. Tax Year 457 Annual Traditional Catch-Up Annual Total With Traditional Catch-Up 2007 $15,500 $15,500 $31, Increase in increments of $500 based on cost-of-living increases You may use the Traditional Catch-Up provision only once, for a duration of three calendar years. Exception: Participants called to duty in the United States military service who participated in the Traditional Catch-Up prior to separating to take military leave may extend the three-calendar-year period by the duration of their military leave service. If your request is approved, you are permitted to stop and start deferrals throughout the tax year. However, your deferrals must not exceed the limit authorized during the Traditional Catch-Up period. If you stop and start deferrals, the Traditional Catch-Up period will not be extended. It is your responsibility to change your deferrals to comply with the contribution limits when the Traditional Catch-Up period has expired. For Contribution s by Plans by Year See Page 5.

4 Information Allow up to 45 days for the request to be processed. Do not change your deferral amount while this application is being processed. Savings Plus will notify you whether or not your request has been approved. If approved, Savings Plus will initiate the change to your deferral amount for Year One. If your annual contribution limit changes from Year One to Year Two/Three, it is your responsibility to make the deferral change for Year Two/Three. It is your responsibility to check your deferral amounts at least once a year. Instructions SECTION I Participant Information Complete all information requested. Failure to provide this information will delay the processing of your request. SECTION II Payroll Information A. Check the number of years you want to participate in Traditional Catch-Up. B. Check whether you are paid monthly or semimonthly. Check one box only. C. Check which payroll office issues your payroll warrant/check. Check one box only. SECTION IV Participant Certification Read carefully, sign, and date the form. Mail form to: Savings Plus Program Attn: Traditional Catch-Up Processing Unit th Street Sacramento CA Fax: (916) SECTION III Underutilized Contributions Use the table on page 5 to complete column C on the application. 4

5 Plan s Tax Year 457 Plan 401(k)/403(b) Plans* Both Plans Maximum limit is the lesser of N/A N/A 33 1/3% of includible compensation 1987 limit was $7,000 or $7, limit was $7, Same as above Maximum limit is the lesser of 20% of Maximum limit is the maximum adjusted gross salary or $7,627 allowed for the 457 Plan 1990 Same as above Maximum limit is the lesser of 20% of Same as above adjusted gross salary or $7, Same as above Maximum limit is the lesser of 20% of Same as above adjusted gross salary or $8, Same as above Maximum limit is the lesser of 20% of Same as above adjusted gross salary or $8, Same as above Maximum limit is the lesser of 20% of Same as above adjusted gross salary or $8, Same as above Maximum limit is the lesser of 20% of Same as above adjusted gross salary or $9, Same as above Maximum limit is the lesser of 20% of Same as above adjusted gross salary or $9, Maximum limit is the lesser of 33 1/3% Maximum limit is the lesser of 25% of Same as above of includible compensation or $8,000 compensation or $10, Same as above Maximum limit is the lesser of 25% of Same as above compensation or $10, Maximum limit is the lesser of 33 1/3% Maximum limit is the lesser of 25% of Same as above of includible compensation or $8,500 annual compensation or $10, Maximum limit is the lesser of 100% of Maximum limit is the lesser of 100% of Maximum limit for both plans includible compensation or $11,000 compensation or $11,000 ($12, ) up to $22,000 ($24, ) ($12, ) 2003 Maximum limit is the lesser of 100% of Maximum limit is the lesser of 100% of Maximum limit for both plans includible compensation or $12,000 compensation or $12,000 ($14, ) up to $24,000 ($28, ) ($14, ) 2004 Maximum limit is the lesser of 100% of Maximum limit is the lesser of 100% of Maximum limit for both plans includible compensation or $13,000 compensation or $13,000 ($16, ) up to $26,000 ($32, ) ($16, ) 2005 Maximum limit is the lesser of 100% of Maximum limit is the lesser of 100% of Maximum limit for both plans includible compensation or $14,000 compensation or $14,000 ($18, ) up to $28,000 ($36, ) ($18, ) 2006 Maximum limit is the lesser of 100% of Maximum limit is the lesser of 100% of Maximum limit for both plans includible compensation or $15,000 compensation or $15,000 ($20, ) up to $30,000 ($40, ) ($20, ) *Does not include employer contributions. Employee deferrals and employer contribution combined may not exceed the percentage-of-compensation limit. 5

6 Please read the information and instructions on the previous pages before completing this form. SECTION I Participant Information Savings Plus Program 457 Deferred Compensation Plan Traditional Catch-Up Application Last Name, First Name, MI Mailing Address Social Security Number (SSN) Date of Birth (mm/dd/yyyy) City, State, Zip Code Daytime Telephone Number ( ) Privacy Statement: The Information Practices Act of 1977 (Civil Code Section ) and the federal Privacy Act (Public Law ) require that this notice be provided when collecting personal information from individuals. Information requested on this form is used by the Savings Plus Program for purposes of identification and account processing. You must furnish all the information requested on this form. Failure to provide the information may result in the action requested not being processed. SECTION II Payroll Information A. The number of years you want to participate in Traditional Catch-Up: One Two Three (maximum allowed) B. Pay frequency (check one box only): Monthly Semi-Monthly C. Payroll warrant/check issued by (check one box only): State Controller s Office District Agricultural Assoc. (Fairs) Assembly Rules Committee CDFA/Marketing Council Senate Rules Committee Joint Legislative Budget Committee California Exposition Note: Checking the incorrect payroll office may delay the processing of this application. SECTION III Underutilized Contributions A Tax Years (Attach sheet if needed) B Annual Gross Earnings C 457 Annual Contribution* D Actual Annual Amount Deferred D.2 401(k)/403(b) Actual Annual Amount Deferred E Annual Amount Not Deferred (Sum of columns D.1 and D.2 subtracted from column C**) * Insert the amount from the Contribution s by Plans by Year on page 5. ** Enter the result in column E if the result is greater than zero. TOTAL $ SECTION IV Participant Certification I request participation in the Traditional Catch-Up provision in accordance with the Plan Document, Internal Revenue Code, and the information provided above. I understand that it is my responsibility to ensure conformance with all requirements of this provision. I understand that the State of California has the authority to approve or reject this request. I hereby certify under penalty of perjury that the information on this form is true and accurate to the best of my knowledge. Signature NRM-4120CA (1206) Date State of California

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