BN - Correcting TSA Deduction Errors

GENERAL DESCRIPTION:

If an error is made and an employee is enrolled in a TSA plan incorrectly or had the incorrect amount taken from their payroll check, that employee must have his or her money refunded to them and "made whole."

PROCESS CONSIDERATIONS:
  • If an employee has been enrolled in a Savings Plan incorrectly, that money must be returned to them. The University must come up with the missing money and it is charged back to the department where the mistake originated. 
  • If the investment has made money, the University does not get that extra money back. Arrangements have been made with the TSA companies to keep any extra funds and put it into a pool. If there are losses for another employee, the company will pull funds from that pool to make the person whole. If there is not enough pool funds to make the person whole, then funds will be collected from the appropriate campus where the employee had been paid from, to make the person whole.
  • Once the person is whole, then the check goes into the check correction process (see Additional Resources below). It should be noted that the employee will be taxed on any refunds.
  • Although rare, requests for a return of excess contributions may occur if an employee has over-contributed to a Savings Plan. This may happen when an employee is coming from or going to another (Non-UW) institution and deferring too much between TSA plans.



PROCEDURE STEPS:

1.  Since the IRS holds the employer accountable, the Plan Administrator should be contacted in the event a return of excess is required or if an employee needs a refund to be made whole for an incorrect contribution.

Plan Administrator Contact:

Rose Stephenson
TSA 403(b) Plan
University of Wisconsin System Human Resources
608-262-5564
Fax: 608-265-5307
rstephenson@uwsa.edu

2.  The employee's records in HRS will need to updated to reflect any returns of excess.  For more information, please reference:  BN - Savings Management Service Adjustment .


ADDITIONAL RESOURCES:

Related KBs:
Related Links:




Keywords:savings refunds excess contributions request for return of excess contributions tsa write-fors hire date   Doc ID:16509
Owner:Tina H.Group:Human Resource System (HRS)
Created:2011-01-08 19:00 CDTUpdated:2017-04-04 08:43 CDT
Sites:Human Resource System (HRS)
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