Limits

The annual contribution limits for the City of Mesa's Deferred Compensation Plan are set by the Internal Revenue Service. When contributing the maximum amount to deferred compensation, a change form must be completed each year indicating the amount of your biweekly contribution.

To calculate the biweekly deduction, take the annual limit less the estimated annual city contribution. Divide that total by the number of payrolls in the calendar year. If you wish to have payroll calculate this figure, indicate the annual dollar amount on the change form or contact us at 644-2357.

Please note that percentage elections are not suggested when maximizing your deferred compensation.

457 Deferred Compensation Plan Annual Contribution Limits

• After 2006, the limit will be indexed to inflation in $500 increments. 

• Employees cannot participate in both the Catch-Up and the Age 50 Catch-Up provisions at the same time.  

• Annual limits cannot exceed a combination of both employee and employer contributions.  

• Employees can contribute to more than one provider with a minimum $10 contribution for each provider.  

• Full-time employment, 1 (one) year of service, and a minimum of $10 contribution meets employer contribution criteria.

To Change Contributions or Beneficiaries

The Deferred Compensation Payroll Change form for the City of Mesa's 457 Deferred Compensation Plan allows changes to be made in the amount deducted for this purpose.  The Beneficiary Designation form can be used to change a beneficiary.  Please launch, print a copy and forward a completed/signed original to the Payroll Office. Once processed, the original will be placed in your payroll file. If you wish to retain a copy for your records, please make a copy before submitting the original to payroll.

The effective date for deferred compensation changes is the first payroll of the following month. 
Important: If you have not enrolled with a deferred compensation provider, there are additional forms which must be completed prior to submitting this form; see Provider List. If you have any questions, you may also contact a Payroll representative at 644-2357.
 

To Stop Contributions

To Stop Contributions to the City of Mesa's 457 Deferred Compensation Plan, please print, complete, and forward a completed/signed original Deferred Comp Stop form to the Payroll Office for processing. 

Important: If you stop your contributions to deferred compensation, you will not receive the City benefit contribution of one-half percent (.5%) of your base pay. To receive this benefit, you must contribute a minimum of $10 per pay period. Please complete a Deferred Compensation Change form if you wish to reduce your contributions.