Below are instructions for transferring leave payouts to either a tax sheltered annuity (TSA) or the Wisconsin Deferred Compensation program (WDC).
(Allow 4 weeks minimum for TSA and 6 weeks minimum for WDC)
- Determine retirement effective date.
- Notify supervisor in writing and personnel representative.
- 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.
- Review amount anticipated to be paid out of the above balances (coordinate with personnel representative).
- If taking a lump sum payout, employees should consult with their financial advisor regarding tax consequences.
- 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.
- 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.
- 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
- Personnel representative will conduct a leave balance forecast to determine how to process leave balance.
- After step 8 above, the personnel representative will log into HRS and process the payout of unused hours in the absence management module.
- Personnel representative should take into consideration the payroll schedule in consultation with the employee.
Benefits Specialist Instructions
- For TSA program, enter SRA form into HRS prior to payroll calculation.
- For WDC program, verify with Margaret Denton, UW Service Center, that WDC reduction has been received and processed timely.