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10.08.01: Processing the TDP agreement addendum

10.08.01: Processing the TDP agreement addendum

To transfer a tax-deferred payment (TDP) agreement from an old employer to a new employer, complete the following steps. An employee whose TDP agreement is canceled or who does not submit the TDP Agreement Addendum (R0625C) form to the employer within 90 calendar days of termination cannot begin a new agreement, as they could have before 5 p.m. EDT, Sept. 29, 2017.

It is the employee's responsibility to complete the following steps:

  1. Transfer the current TDP agreement to the new employer within 90 days of terminating with the previous employer. If the employee does not transfer the agreement before the end of the 90-day period, a new billing statement must be obtained from ORS at the updated cost to purchase the remaining service for the purchase of active duty military service credit, payment for a repayment of a refund, contributions for post-1992 weekly workers' compensation, and MIP window buy-back only. The 90-day period begins with the termination date.
  2. Complete the employee portions of the TDP addendum and provide the new employer with both the addendum and the original TDP agreement.
  3. Provide the balance due obtained from the previous employer.
  4. Sign the addendum and ensure that the payroll official signs it before the 90-day period expires.

It is the employer's responsibility to complete the following steps:

  1. Verify that the information on the TDP addendum is correct and that the form is signed and dated. Note: The deduction amount must be equal to the amount that was previously deducted by the old employer.
  2. Complete the New Employer Information section, including the reporting pay period of the first TDP deduction. Note: You are prohibited from beginning deductions until the former employer's deductions have stopped. Please wait two full pay periods after signing the TDP agreement/addendum before taking the first deduction for an employee who is new to your reporting unit. This allows a retirement detail report that includes wages and hours for the new employee and the information for the TDP agreement/addendum to post to the employee's account. ORS cannot process agreements/addendums if wages from your reporting unit are not posted to the employee's account.
  3. Sign and date the TDP addendum. Use the latest signature (yours or the employee's) as the new effective date.
  4. Fax any signed, completed Tax-Deferred Payment (TDP) Agreement Addendum (R0625C) within five business days of receiving the completed form from the employee to ORS at 517-284-4416.
  1. When the faxed copy of the addendum form has been received by ORS, and wages from your reporting unit have posted to the employee's account, ORS will load the agreement to the employee's account.
  2. If you are the previous employer, stop submitting DTL3 records after the employee receives the final paycheck. The last DTL3 record should be submitted using deduction code 02 and a zero dollar amount.

Last updated: 05/19/2020