Transferring Leave Payouts

Below are instructions for transferring leave payouts to either a tax sheltered annuity (TSA) or the Wisconsin Deferred Compensation program (WDC).


Employee Instructions

(Allow 4 weeks minimum for TSA and 6 weeks minimum for WDC)

  1. Determine retirement effective date.
  2. Notify supervisor in writing and personnel representative.
  3. Employee should discuss with their supervisor if they will remain on payroll to use any accrued leave balances thereby affecting their final retirement date, or use remaining balances for a lump sum payout of vacation/personal holiday/alra.
  4. Review amount anticipated to be paid out of the above balances (coordinate with personnel representative).
  5. If taking a lump sum payout, employees should consult with their financial advisor regarding tax consequences.
  6. If the employee wishes to increase their contribution to a TSA or WDC, so that the majority of their leave payout is deferred and does not incur a high tax consequence, they should verify with the Benefits office the maximum reduction amount available and coordinate leave payout with your personnel representative.
  7. For the TSA program, complete an SRA Form and submit to Human Resources, Englemann Hall, Room 125. Once the SRA is active notify the personnel representative.
  8. For the WDC program, contact WDC directly for reduction step up. WDC information is found at www.wdc457.org, or call (877) 457-9327. Once the WDC is active notify the personnel representative.

Personnel Representative Instructions

  1. Personnel representative will conduct a leave balance forecast to determine how to process leave balance.
  2. After step 8 above, the personnel representative will log into HRS and process the payout of unused hours in the absence management module.
  3. Personnel representative should take into consideration the payroll schedule in consultation with the employee.

Benefits Specialist Instructions

  1. For TSA program, enter SRA form into HRS prior to payroll calculation.
  2. For WDC program, verify with Margaret Denton, UW Service Center, that WDC reduction has been received and processed timely.

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