|Date: December 09, 2003||Bulletin No. 449|
Changes and Instructions for Entering Tax Deferred Annuity (TDA) and Supplemental
Retirement Annuity (SRA) Deductions for the Year 2004
New Control D Agency Report, NBEN749 SRA/TDA Default Goal Amount
|Purpose||To explain system changes and new instructions for entering Tax Deferred Annuity (TDA) and Supplemental Retirement Annuity (SRA) deductions for the Year 2004.|
who currently have any of the following deductions:|
has implemented a new procedure that will improve transaction processing
for the above deductions. This procedure will also greatly reduce the
need for refunds to employees at year- end, caused by excess deferrals
of SRA/TDA contributions. |
At the beginning of each calendar year, OSC will now insert a new effective-dated row with a default Goal Amount (the normal maximum limit announced by the IRS for the calendar year) for all SRA/TDA deductions.
|Effective for the first paychecks of 2004: Institution checks dated January 8, 2004 and Administration checks dated January 14, 2004.|
For employees who have an active SRA/TDA deduction and whose status is
Active, Paid Leave or Leave Without Pay, OSC will insert a new effective-dated
row (using the beginning date of the first pay period of 2004) with the
current deduction percent or Flat Amount and a default Goal Amount of
$13,000 (normal maximum YTD contribution for 2004), and zero out
any Goal Balances.
For employees who have a SRA/TDA deduction that is not end dated and whose status is Retired, Terminated or Deceased, OSC will end date these SRA/TDA deductions.
"Goal Amount" will now be a required field for these deduction codes.
To ensure information accuracy throughout the calendar year, OSC has created the following edit messages:
|New Control D Report (NBEN749)||OSC will produce a new report, NBEN749 SRA/TDA Default Goal Amount that identifies employees who are participating in these programs. These reports will be available in Control D on or about December 8, 2003. If no agency action is taken, OSC will continue the deductions for these employees for the year 2004.|
|Agency Actions||Agencies must review the NBEN749 SRA/TDA Default Goal Amount report of participating employees. If a change to the employee's current deduction or goal amount for 2004 is necessary, agencies must update the General Deduction page in accordance with the instructions below.|
|Agency Processing Instructions to Change Existing Deductions or Report New Deductions|| If
changes are necessary, the transaction should be entered during the processing
of the pay period that the deduction would take effect. Do not insert
future-dated transactions for these deduction codes.
If it is necessary to change the Deduction Amount/Percent or the Goal Amount, agencies must insert a new effective-dated row. All information will roll up on the newly inserted row, unless the Goal Amount and Goal Balance are equal.
If the Deduction Amount/Percent is changing, the agency must insert a new effective-dated row and overwrite the Deduction Amount/Percent.
If the Goal Amount is changing, the agency must insert a new effective-dated row and overwrite the Goal Amount.
If the Deduction is being cancelled, the agency must insert a new effective-dated row and change the Effective Date to be the first day of the pay period in which the deduction should be cancelled and also enter the same date as the Deduction End Date.
Agencies should never enter or change the Goal Balance Amount.
|Questions||Questions regarding this bulletin may be directed to the Payroll Deductions mailbox.|