Special 457 (b) Catch-Up Contributions

For eligible employees, you can enable special catch-up contributions for their 457 (b) plans.

Before setting up these elements, consider the following.

• Employee eligibility

• How these contributions work

• Enabling these contributions

• Disabling these contributions

• Configuring Multiple Plans

• Configuring underutilized contributions

What Employees Are Eligible

It's your responsibility to determine when an employee is eligible to start taking special catch-up contributions.

It's also your responsibility to determine when they're no longer eligible.

How These Contributions Work

For employees with these contributions enabled:

• Special catch-up contributions don't begin until the person reaches their base contribution limit.

  This limit always uses the sequential processing rule.

• Once they begin, the payroll process no longer processes the standard catch-up contributions.

• The process uses the base 457 (b) contribution deduction amount or rate for these deductions.

• If the employee has both special catch-up and base catch-up contributions, the process ignores the base catch-up contributions.

• If an employee is contributing to base catch-up, they can switch their plan to special catch-up only at the beginning of the year (January 01). The reverse is also true.

• The process doesn't look back further than 3 years when determining underutilized contributions.

  If you mark a person as eligible, but you don't set an underutilized contribution amount, the payroll process doesn't take the deduction.

• The process enforces the lower of these limits.

  • Twice the annual base contribution limit

  • The annual base contribution limit + underutilized amount contributions

How You Enable These Contributions

For eligible employees:

1. From My Client Groups, click Payroll.

2. Click Calculation Cards.

3. Search for and select the person.

4. Open their Benefits and Pensions card for editing.

5. Click Enterable Calculation Values on Calculation Cards, and click Create.

6. Search for the Employee Eligible for Special 457 (b) Catch-Up Contributions value.

7. Select Yes, and click OK.

8. Save and submit your changes.

How You Disable Them

If an employee is no longer eligible for these contributions, end-date Employee Eligible for Special 457 (b) Catch-Up Contributions on their card component. Use the appropriate calendar year as the effective date, based on number of years allowed by the plan.

How to Handle Employees in Multiple Plans

An employee can participate in multiple 457 (b) plans. If that's the case, consider the following.

• They can't be a mix of special catch-up and age 50 catch-up contributions across the plans. They all must be one or the other.

How to Configure Underutilized Contributions

It's your responsibility to calculate the person's accumulated underutilized contributions.

Note: You may need to run the Element Upgrade before this functionality is available. For further info, see Oracle Cloud Human Capital Management for the United States: Element Upgrade Flow (2458385.1) on My Oracle Support.

Perform these steps to enter the accumulated value.

Note: When you run the Start-of-Year flow using the 457 limit update data type, it end-dates the Accumulated Underutilized Contributions for Special 457 (b) Catch-Up calculation value as of 12/31 for the previous effective year. If your plan allows multiple years to contribute to special catch-up, you must recreate this calculation value each calendar year with the updated amount.

1. From My Client Groups, click Payroll.

2. Click Calculation Cards.

3. Search for and select the person.

4. Open their Benefits and Pensions card for editing.

5. Set an effective date if necessary.

6. Click Enterable Calculation Values on Calculation Cards, and click Create.

7. Search for the Accumulated Underutilized Contributions for Special 457 (b) Catch-Up value.

8. Enter the amount of underutilized contributions, and click OK.

9. Save and submit your changes.