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10.03: Setting up a TDP Agreement

10.03: Setting up a TDP Agreement

The tax-deferred payment (TDP) agreement is the original contract between the employee and the employer that is used to purchase active duty military service credit or make payment for a repayment of a refund, contributions for post-1992 weekly workers' compensation, or MIP window buy-back, using the tax-deferred payment program. Your employees should bring a completed TDP agreement form and current billing statement to you. Some employees may request your assistance in completing the forms; however, it is the employee's responsibility to ensure the agreement is completed, including the signatures.

Employees are told to bring their TDP agreements and member billing statements to their payroll office to have the deductions started. See images below.

The following steps provide instruction for setting up the agreements.

  1. Verify that the TDP agreement has been filled out accurately and completely. Both you and the employee must sign and date the agreement.
  2. Verify box 7 BILLING AMOUNT (TOTAL DUE) and box 8 SERVICE YEARS AVALABLE remain unmodified. 
  3. Verify that the employee has sufficient regular pay to cover the deduction amount.
  4. Give a copy of the TDP agreement, billing statement, and any other supporting documents to the employee. Keep a copy for your reporting unit records.
  5. Fax a paper copy of the billing statement and the TDP agreement to ORS at 517-284-4416.

Last updated: 04/27/2020