10.09: Closing a TDP agreement

Tax-deferred payment (TDP) agreements are closed when either the employee has paid it in full or has died, retired, or terminated employment with your reporting unit. A survivor is not permitted to continue the purchase on behalf of a deceased employee.

TDP deduction codes used to close an agreement:

The deduction code you submit on the DTL3 record can provide the reason for closing an agreement or addendum. Note the following important information:

The identifying information, invoice/agreement number and Social Security number on the DTL3 record must match those on the agreement/addendum to which the deduction is being applied.

After an agreement has been paid in full, you may submit one more DTL3 record with the deduction code 06 and deduction amount $0 to confirm the TDP agreement is completed. This record will suspend and return one of two messages. It will either confirm that the TDP agreement is paid in full, or it will inform you that a balance still remains. If the message confirms that the agreement is paid in full, please delete the DTL3 record from your retirement detail report. If the message indicates a balance due, contact Employer Reporting.

When using a deduction reason code other than 01 - Valid Deduction, the TDP amount must be $0.00.

Only use the following deduction codes when all valid TDP payments have posted:

  • 02 - Agreement Suspended - Member Terminated.
  • 04 - Agreement Closed - Member Deceased.
  • 05 - Agreement Closed - Member Retired.

Records with the following deduction codes will post out of sequence and will irrevocably close TDP agreements:

  • 04 - Agreement Closed - Member Deceased.
  • 05 - Agreement Closed - Member Retired.

For this reason, ORS suggests these codes only be used after all other records have posted. Contact ORS immediately if you require assistance.