BN - Savings Management Service Adjustment

GENERAL DESCRIPTION:

The University needs to enforce the Tax Sheltered Annuity program's annual limits determined by Internal Revenue Code (IRC) section 402(g) and 415(c). All employees eligible for the Tax Sheltered Annuity program can contribute up to the annual limit. Certain employees may also be eligible for two additional increase options based on years of service and age. Employees can be eligible for both increase options at the same time. When an employee requests to maximize his or her contribution to the 403(b) plans, years of service must be reviewed prior to making any changes to their records.

PROCESS CONSIDERATIONS:
  • If any part of an employee's years of service was worked in the Employee Classes of ET2, ET4, SA1, OT3, or OT4, then that time must be subtracted from his or her Life to Date and Year to Date service years on the savings management record.  Conversely, an employee may need years of service added to his or her Life to Date and Year to Date service years on the savings management record.
  • In addition to researching employee service years on a case by case basis when necessary, a query should be run annually to identify employees who may need an adjustment to their years of service for savings management.   Years worked in certain employee classes are ineligible for maximizing 403(b) contributions.  These inelgible years must be subtracted from an employee's Life to Date and Year to Date service years for the 403(b) 15 year catch up.

PROCEDURE STEPS:

1. Navigate to:  Workforce Administration > Job Information > Job Data
2. Enter the Employee's ID number and click Search
3. Click the Job Information tab
4. Verify the Empl Class for this job for this employee (see ineligible empl classes listed above)
Job Data

5. If the Empl Class is ineligible for counting toward service years, click the Employment Data link at the bottom of the page

Employment Data Link

6. Look at the Original Start Date field to determine the number of years the employee has held this position

Employment Data


NOTE: With the conversion of data from the old Legacy system to PeopleSoft, all employees' First Start Date defaulted to 02/10/2011. DO NOT USE THIS DATE.  You will need to do further research to verify the correct Original Start Date with the UW.



ADJUSTING SERVICE YEARS:

1. Navigate to: Benefits > Enroll in Benefits > Savings Management
2. Enter the employee's ID number
3. Click the Search button
4. Click 403(b) Adjust hyperlink for the calendar year to be updated

Savings Management

5. Select the Override Service Years Calc check box
6. Enter updated Service Years YTD (Year to Date) and/or
7. Enter updated Service Years LTD (Life to Date)
8.Click the OK button

403B Adjustments


https://kb.wisc.edu/images/group61/shared/9.2_Warning_Sign.png  Warning!  The Wisconsin Deferred Compensation (457 Plan) Plan has different annual limits.  Please visit the WDC Website for more information regarding those limits.



ADDITIONAL RESOURCES:


Related KBs:

Related Links:





Keywords:years of service YTD LTD adjustment 403(b) 401(k) limit IRS IRC override TSA 457 maximize contribution catch up SRA Tax Sheltered Annuity WDC Wisconsin Deferred Compensation WRS Wisconsin Retirement System retirement retire 65 70 1/2 55   Doc ID:16513
Owner:Joanna B.Group:Human Resource System (HRS)
Created:2011-01-08 18:00 CSTUpdated:2017-08-07 07:24 CST
Sites:Human Resource System (HRS)
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