10.07: TDP Annual Interest
TDP agreements that were initiated on or after January 1, 2004, are subject to 8 percent compound interest that will be applied annually on July 1 to the unpaid balance. This is included in the Terms of Agreement of the completed TDP agreement.
As the employer, it is your responsibility to update the employee’s remaining TDP balance with the TDP Interest each year after July 1. The interest appears in the Interest Amount column of the TDP Agreement Details spreadsheet.
The spreadsheet provides total accumulated TDP interest as well as yearly detail for the last five TDP interest postings.
Please note the following important items concerning TDP interest:
- Do not add the total accumulated interest amount to your balance, as this may represent more than one year’s worth of interest. Instead, use the balance shown by ORS, or add only the most current interest posted on the employees account to your balance.
- BEFORE you accept ORS’s balance as your own, verify the following.
- Are there any missing deductions?
- Are there any adjustments?
- Are your reports up-to-date?
- Have all the deductions posted?
- The interest is calculated on the remaining balance of the agreement as of June 30, including any payments submitted with that end date. If a payment is submitted to ORS but is suspended or hasn’t posted, the balance will not reflect that payment. The interest amount will adjust automatically when either of the following happens:
- A suspended TDP payment (DTL3 record) for a pay period ending on or before June 30 is edited and subsequently posts.
- A TDP payment (DTL3 record) is adjusted for a pay period ending on or before June 30 and subsequently posts.
Last updated: 04/13/2012