457 Employee Contributions (PSE)

When you participate in RIC, you choose how much to contribute to your 457 employee contribution account through automatic payroll deductions (not to exceed IRS 457 annual maximum contribution limits). You may choose to have deductions taken from your paycheck before state and federal income taxes (pretax) or, if allowed by your employer, after taxes are withheld (Roth post-tax). There are no vesting requirements.

Contribution Limits

There is no minimum amount to participate (unless specified by your employer). The maximum contribution limits are declared by the IRS annually (IRS 457 maximum contribution limits).

Beginning in 2026, a new federal law will take effect which will change how higher-earners age 50 and over make contributions to their 457 plans.

Here's how the new law will work:

• Beginning on January 1, 2026, workers who are 50 or older who earned more than $150,000 in OASDI wages in the prior year will need to make any contributions over the regular limit on a Roth basis, excluding contributions made using the 3-year catch-up.

Your employer will monitor contributions for those impacted by this requirement and will change contributions from pretax to Roth as needed. If you are affected by this change and do not wish to contribute on a Roth basis once your contributions reach the regular limit, please contact your employer and request that your contributions stop for the remainder of the calendar year. 

Deduction Changes

You may change/stop your payroll deductions at anytime. If you wish to change your payroll deduction elections, please complete your employer's RIC Account Form.

Retiring Employees

Terminating employees may have the option to defer additional compensation (such as paid time off) from their final pay.

Processing Timeline

Payroll deduction change requests are generally effective with the next available paycheck.

IRS Maximum Limit Changes

The IRS declares the annual maximum contribution limits each calendar year (shown above). If the IRS declares to increase the maximum limit in a year, the increase will be in $500 increments.