10.03.06: Scheduled TDP Deduction Must Be Made Every Pay Period

Your reporting unit is obligated to make the entire scheduled payment according to the agreement/addendum/supplemental agreement only if there are sufficient funds in the employee’s pay after any other mandatory deductions. The scheduled deductions cannot be reduced. This means that if the employee’s wage isn’t large enough to cover the entire deduction then no deduction should be made. A deduction reason code must be included for each pay period in the life of the agreement. Deduction codes provide the reason for the deduction, i.e. regular payment, or the reason for a nonpayment, i.e. not enough wages, or the employee is on an unpaid leave of absence. If an entire deduction cannot be withheld, a valid nonpayment reason code must be used with the zero payment. See section 13.04: TDP Deduction Reason Codes.

If an employee is on a leave of absence without pay, sabbatical, disability, or reduced hours, and the earnings are not sufficient to take the deduction, you will report no payment with a valid reason code explaining the lack of payment.

Prorated service credit and payments to purchase active duty military service are posted to the employee’s retirement account as the payments are made.

Payment that cannot be prorated are for payments of a repayment of a refund, contributions for pre 1992 weekly workers compensation, and MIP Window buy back. Those types of payments are not posted to the employee’s retirement account until the agreement has been paid in full.

Last updated:  09/29/2017