Retirements & Thrift Savings Plan

Transcription

1 Retirements & Thrift Savings Plan Defense Finance and Accounting Service INDIANAPOLIS PAYROLL OFFICE Integrity - Service - Innovation

2 Table of Contents Retirements Thrift Savings Plan (TSP) RCC and FERCCA defined Deceased Employees Miscellaneous Retirements Request Agency Responsibilities PRO Responsibilities TSP Loans Frequent issues TSP USERRA 4/17/2017 Integrity - Service - Innovation 2

3 Retirements 4/17/2017 Integrity - Service - Innovation 3

4 Retirement Code Changes/FERCCA Retirement Code Change (RCC) Same Retirement Plan and Different Code No time restriction OR Different Retirement Plan Less than three years Federal Erroneous Retirement Coverage Corrections Act (FERCCA) Different Retirement Plan Greater than three years 4/17/2017 Integrity - Service - Innovation 4

5 RCC/FERCCA Different types of Retirement plans Civil Service Retirement System (CSRS) Social Security System (FICA) CSRS Offset FICA & CSRS Federal Employees Retirement System (FERS) 1986 Federal Employees Retirement System Revised Annuity Employee (FERS-RAE) 2013 Federal Employees Retirement System Further Revised Annuity Employee (FERS-FRAE) 2014-forward 4/17/2017 Integrity - Service - Innovation 5

6 Retirement Code Changes/FERCCA Retirement Code Change Remedy ticket Requirements All SF-50 s that pertain to the timeframe that the retirement code change is to occur OR One SF-50 stating in block 45 the timeframe that needs to be updated FERCCA Remedy ticket Requirements All SF-50 s that pertain to the timeframe that the retirement code change is to occur OR One SF-50 stating in block 45 the timeframe that needs to be updated Block 45 must include statement that FERCCA rules apply to the case. 4/17/2017 Integrity - Service - Innovation 6

7 RCC/FERCCA FERCCA statement 4/17/2017 Integrity - Service - Innovation 7

8 RCC/FERCCA PRO audits employee records for all years involved and determines any monies owed due to retirement change PRO issues Debt Letters for any monies owed due to a Retirement Code Change or FERCCA Employee can submit VRA to payback retirement debts VRA s relating to retirement debts can be submitted under the Retirements Remedy ticket title Once the retirement code has been changed in DCPS PRO cannot update the employee s IRR or the year to date record until the debt has been paid in full OPM guidelines Benefits Administration Letters (BAL) FERS and CSRS Handbook 4/17/2017 Integrity - Service - Innovation 8

9 Deceased Employees Any unpaid compensation and Lump sum leave will be paid out once Beneficiary application has been received We do not need to be notified when an employee has passed HR interface of SF-50 is all the notification we need If you have an employee who has passed and HR has yet to flow SF-50 please input an X into the work schedule for the date of death This will ensure a check/eft does not go out to the employee Ensure the date of death is accurate to mitigate any corrections needed 4/17/2017 Integrity - Service - Innovation 9

10 Miscellaneous Retirement requests Civilian Retirement Buy Back Employees who separate civilian service and return to a civilian position may buy back previously refunded civilian retirement contributions These requests MUST be processed and paid directly through OPM Payroll deductions are not an option Disability Retirement Approval letters must be mailed to us for processing No need to submit Remedy ticket Civilian Pay Indianapolis- Dept E 56 th St Indianapolis, IN Denial letters may be submitted through Remedy 4/17/2017 Integrity - Service - Innovation 10

11 Thrift Savings Plan (TSP) 4/17/2017 Integrity - Service - Innovation 11

12 Agency Responsibilities DFAS is not the TSP administrator, Agency directly administers TSP program to participants Agency: Determines eligibility and TSP status Processes TSP elections Inputs personal information that is submitted by payroll to TSP Payroll does not have access to employee personnel files Information is maintained in Civilian participant's accounts POC for Employee Inquiries 4/17/2017 Integrity - Service - Innovation 12

13 PRO Responsibilities Submits TSP payroll data for Civilian participants Submits corrections to the TSP Assists HR/CSR if data does not transfer correctly Work Payroll/Personnel Invalid Report Payroll/Personnel Recon must be provided 4/17/2017 Integrity - Service - Innovation 13

14 TSP Loans TSP Loans are Initiated by employee with TSP Employee must review TSP Loan deductions on LES (WO) Start / Insufficient Missed payments cannot be made up through payroll Employee sends TSP 26 Loan Payment Coupon to TSP Employee must contact TSP to reamortize a loan Cannot change biweekly payment amount directly with payroll TSP Loan transfers TSP 19 Transfer of Information Between Agencies Employee must notify gaining agency Submitted to DFAS by gaining agency (Remedy) 4/17/2017 Integrity - Service - Innovation 14

15 TSP - 41 NOTIFICATION TO TSP OF NON-PAY STATUS TSP 41 Notification to TSP of Non-pay Status Must be certified by HR Absent-US and LWOP Employee must indicate whether the non-pay period is for military service or other (nonmilitary), because the regulations are different for each especially if the participant has a TSP loan: Non-pay due to military service The IRS allows a TSP loan to be placed on hold for the entire period of non-pay, and the maximum period for repaying the loan is extended Non-pay, nonmilitary The IRS allows up to one year of missed loan payments. When the one-year period is over, the loan will be re-amortized and loan payments must resume 4/17/2017 Integrity - Service - Innovation 15

16 Frequent TSP Issues HR flows change/stop contributions into DCPS Contact PRO only if an error occurs HR will provide Personnel Recon reflecting mismatch of DCPDS and DCPS New employees are automatically enrolled into TSP at 3% contribution rate Employees have 90 days from the date of their first contribution of the automatic 3% to opt out Payroll office cannot issue refunds for any request for automatic enrollment refund Mail or FAX Form TSP-25 to TSP for processing 4/17/2017 Integrity - Service - Innovation 16

17 Frequent TSP Issues Individuals can contact the TSP for TSP statement copies Opt #3 Have TSP account number and SSN ready and answers for security questions (if applicable) Address and Name changes Must be input into DCPS DCPS will send the updates on the tape/payroll files Remedy tickets can be submitted for assistance if needed 4/17/2017 Integrity - Service - Innovation 17

18 Frequent TSP Issues TSP Hardships TSP 76 Financial Hardship In-Service Withdrawal Initiated by the employee directly with TSP TSP deductions will be stopped for minimum of 6 months and 1 week Employee receives a letter from the TSP with dates of when they may resume if they choose to restart their elections Employee needs to complete and submit a new Form TSP-1 to HR TSP election information must be interfaced by HR to restart deductions Does not need to be immediate 4/17/2017 Integrity - Service - Innovation 18

19 Frequent TSP Issues TSP Missed Contributions NOT the same as Catch-up Missed contributions are when an employee had a valid election that was not interfaced to the payroll system Employee will receive a letter informing of options for payment Missed contributions can only be paid by payroll deduction 5 CFR Missed contributions tax-deferment are applied to current year, though contributions are attributed toward calendar year missed 4/17/2017 Integrity - Service - Innovation 19

20 Catch Up Contributions TSP CUC (JV) & Roth CUC (JW) Employee must be over or turn 50 during the calendar year Contributions can begin at anytime during the calendar year End of Year Catch Up Contributions NOT retroactive Catch Up Contributions do not continue year to year A new catch-up contribution election is required each calendar year Participants do not receive matching contributions on catchup contributions contributed to TSP Maximum catch up yearly amount is $6,000 4/17/2017 Integrity - Service - Innovation 20

21 If Entering TSP via EBIS Select Transactions to Access TSP to View Current Coverage & Make Changes 4/17/2017 Integrity - Service - Innovation 21

22 If Entering TSP via EBIS TSP Elections New elections are for Future contributions only New contributions = Traditional TSP ($ or %) + Roth ($ or %) Common error is applying a dollar amount to the percentage Results in TSP deduction for entire check Click Process Transaction to complete transaction TSP actions are effective at the end of the pay period 4/17/2017 Integrity - Service - Innovation 22

23 TSP Quick Tips FORMS Do not send TSP election forms to PRO PRO does not process/retain TSP forms CHANGES Name/Address changes must be entered in DCPS before PRO sends to TSP Contribution changes/stops must be entered in DCPS before PRO sends to TSP Data transfers from DCPS to TSP the same pay period Contact PRO if an error occurs; provide Personnel Recon 2017 DEFERRAL LIMITS TSP - $18,000 TSP Catch Up - $6,000 Combined Deferral - $24,000 Block 12 DD Prior year missed contributions will have year annotation LOANS HR/CSR must notify PRO to transfer loan Ensures loan payments are reestablished Submit on TSP-19 via Remedy/Imaging Account has 7 numbers & 1 letter TSP CONTRIBUTIONS Applies to Traditional & Roth Combined to meet deferral limit of $18,000 TSP CATCH UP CONTRIBUTIONS Are not retroactive. Applies to Traditional & Roth Combined to meet deferral limit of $6,000 4/17/2017 Integrity - Service - Innovation 23

24 TSP USERRA Employee eligible for 1% agency matching while on LWOP-US DCPS processes online timeframes automatically NOAC 473 Military LWOP-US NOAC 292 Return to Duty Employees have opportunity to make up missed contributions on return to civilian pay status Employees have 60 days to determine if they want to make up missed TSP contributions during the period of military service Agency pays Lost Earnings (Breakage) on all Agency contributions for USERRA makeup contributions Matching contributions can be applied to Civilian pay if employee contributed to Military Pay TSP 4/17/2017 Integrity - Service - Innovation 24

25 Agency Actions Submit a Remedy ticket if employee wishes to make up missed contributions Remedy Ticket Title: USERRA TSP Required documentation Memo request form to include LWOP-US dates Updated address HRO contact information Payroll Office All SF-50 s for the time period while on LWOP-US Detailed Military Earnings of one of the following: Military Leave and Earnings Statements for full LWOP time frame Copy of Master Military Pay Account (MMPA) screens detailing the TSP breakdown, for each pay period included in LWOP time frame Employee signed statement if did NOT contribute to Military TSP 4/17/2017 Integrity - Service - Innovation 25

26 USERRA Missed Contributions Maximum payback time is 2x the number of missed pay periods PRO processes manually each pay period Missed contributions are applied towards applicable deferral year Will show on Current Year W2 for tax benefit Block 12 DD If employee decides to STOP making missed contributions Decision is irrevocable Monies cannot be refunded If employee decided initially to NOT make up contributions Decision is irrevocable Outside of 60 days 4/17/2017 Integrity - Service - Innovation 26

27 USERRA Letter 4/17/2017 Integrity - Service - Innovation 27

28 Information Thriftline 1-TSP-YOU-FIRST ( ) TSP Forms 4/17/2017 Integrity - Service - Innovation 28