11.03: How to submit FPDs for DC Converted members

11.03: How to submit FPDs for DC Converted members

Employees with a DC Converted benefit plan may need two somewhat different final payroll details (FPDs) because the reporting unit from which they are retiring may not be the reporting unit where they worked when their benefit plan converted to the Defined Contribution (DC) plan on Feb. 1, 2013.

If the employee is retiring from the reporting unit where they worked when their Basic or MIP plan ended on Feb. 1, 2013, then that reporting unit can complete the FPD to report both the correct termination date and the reportable compensation through Feb. 1, 2013.

If the employee is retiring from a different reporting unit than the one where they worked on Feb. 1, 2013, then (at least) two reporting units will complete an FPD. The reporting unit where the employee retired from must complete an FPD to show the termination date, last day worked, and last day paid, but will not have any data regarding reportable compensation (DB wages). The reporting unit(s) where the employee worked when their plan was converted to DC in 2013 must complete an FPD to report those reportable DB wages. They will also report a termination date, etc., but it will not affect the employee's retirement date. Follow the steps below when completing FPDs for members with DC Converted benefit plans.

Before beginning the FPD for a DC Converted member, determine whether the employee worked for you on Feb. 1, 2013. Then follow one of these two sets of instructions.

11.03.01 DC Converted employee worked for your reporting unit on Feb. 1, 2013
11.03.02 DC Converted employee did not work for your reporting unit on Feb. 1, 2013