10.02.01: Employees must be active members to participate in a TDP

10.02.01: Employees must be active members to participate in a TDP

Employees must be active members in order to participate in a tax-deferred payment (TDP) agreement. In other words, they must be currently working for and paid by your reporting unit. Employees remain active while laid off for a maximum of one year or on an approved leave of absence as long as an employee/employer relationship exists and as long as the employee has earned service credit in the past two years. See extended leave of absence (more than two years) in section 3.03: Who is not a member for more information. Substitute, part-time, intermittent, and temporary employees are considered active members only on the actual days they work. If you allow substitute, part-time, intermittent, or temporary employees to participate in a TDP plan, a TDP agreement can only be initiated on a day that the employee is actually working for your reporting unit. An "on-call" employee is not considered an active member. A substitute, part-time, intermittent, or temporary employee is an employee who:

• Does not work every pay period, but works intermittently; or
• Does not work a full year; or
• Works part time for multiple employers; or
• Is terminated at the end of each day.

Last updated: 08/25/2015