About Deduction Codes

When an employee has multiple agreements for the same type of service, set up each agreement as a separate deduction with the correct TDP deduction code. See the complete listing of TDP Deduction Codes.

Why? In preparing for this, ORS has found that agreements are not being entered correctly in HRMN. This causes extra work for you.

EXAMPLE

In September of 2005, Mr. Smith brought in his billing statement to buy one year of UBI service. You set up his TDP agreement at $50 per pay period under the deduction code of SV02. Then in the summer of 2007, Mr. Smith decided to purchase the remaining four years of service. He brought in a new billing statement. You added this new billing to his existing TDP agreement at an increased payment of $75 per pay period. Now Mr. Smith has two TDP agreements that have been lumped under one deduction. He is currently paying $75 per pay. To fix this you need to separate the one deduction into two. Problem: Mr. Smith now has one agreement with a $50 payment and the other with a $25 payment. Since the minimum is $50 on each agreement, Mr. Smith's second agreement must be increased an additional $25 per pay to bring his total payments to $100. 

You can prevent this from happening on new agreements by always creating a separate deduction code for each agreement. In our example, the first agreement would use the deduction code SV02 and the second agreement would use the deduction code SV22.

Each deduction matches an agreement number on the employee's retirement account. Separate deduction codes are necessary to make sure the correct payment is always applied to the correct purchase agreement. Otherwise, ORS deducts all payments from only one agreement until it's paid off before applying payments to any other agreements.

Deduction Code List