Employers' Pensions and Benefits Administration Manual (EPBAM)
Winter 2003
   

 

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ABP: Reporting and Remitting
Employee Contributions


All contributions taken by the State Centralized Payroll Unit and the autonomous State colleges and universities are forwarded to the designated ABP carriers on a timely basis.  According to federal law, all 403(b) contributions must be credited to the member's account within five business days of the payroll date.

Employers who use the State Centralized Payroll Unit will have employee and employer contributions reported to the ABP carriers by the Division of Pensions and Benefits. 

The autonomous State colleges and universities need to forward all monies to the appropriate ABP carriers, and submit a report to the Division of Pensions and Benefits using the Employer Contributions Report. The Employer Contributions Report provides the salary and membership data necessary to secure the State's 8% employer contribution.

Since January 1995, a participant's regular 5% employee contribution has been treated as federally tax-deferred under Section 414(h) of the federal Internal Revenue Code.  Therefore, the 5% member contribution is excluded from federal income tax under a Tax-Deferred Annuity (TDA) program.  This permits participants to defer a higher maximum under IRC Section 403(b) and further reduce federal income taxes owed.

All investment providers are required to furnish a statement of account to every participant on a quarterly basis.  The statement must indicate the balance of the account with respect to the value of the contributions credited to the participant's account.

Necessary Forms

 

Enrollment Application
Salary Reduction Agreement
Application for Transfer Form
Carrier Election Form
Leave of Absence Form
Frequently Asked Questions
Election of Retirement Coverage Form -Transfer from PERS/TPAF
Retirement Application
Designation of Beneficiary Form

 

 

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Last Updated: October 6, 2011