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Can Deferred Comp Catch Up be Prorated Depending on Regular Def Comp Deduction?
Summary:
There are two deductions for Deferred Comp (in our case 457): 1) Regular Deferred Comp and 2) Catch-Up Deferred Comp. The deductions are take sequentially (Regular until the max limit and then Catch-Up). The employee selects a flat amount for both deductions. In the pay period in which the employee reaches the max limit on the regular deduction, the deduction is often less that 100% of the flat amount. The system is taking 100% of the catch-up amount instead of a partial amount even though a partial deduction of the regular has already been taken.
Content (required):
Example:
Regular Def Comp Deduction = $500
Catch-Up Def Comp Deduction = $500