Core-CT HRMS Daily Mail
Date: 4/3/2018
Tier 4 Catch-Up Deductions in the 4/13/18 Check Date
The 2017 SEBAC Agreement defined a new Tier 4 Pension Plan, which was
comprised of both a traditional Defined Benefit (DB) component and a new Defined
Contribution (DC) component. Each of these includes both employee and employer
share deductions. Due to the delayed implementation of the Tier 4 Plan, Catch–Up
deductions have been created to collect the missed contributions for both the
employee and employer shares.
Tier 4 Employees will have TWO permanent employee share deductions (both DB and
DC) as well as TWO Catch–Up employee share deductions (DB and DC). There are
also corresponding Employer shares for each. The DB deductions were added by the
agencies; the DB Catch-Up, DC and DC Catch-Up deductions were added centrally.
The Catch-Up deductions are temporary, and will end with the final payment on
the check dated 6/22/18.
For example, for an employee hired into Tier 4:
1 - RSER4 is the permanent DB retirement deduction; RSERER is the
permanent DB employer share. |
2 - CDSER4 is the corresponding DB Catch-Up Deduction. There is no
employer DB catch-up. |
3 - RSERDC is the permanent DC deduction: RSERDR is the permanent DC
employer share. |
4 - The DC Catch-Up for employee begins with KCEE and the employer
DC Catch-Up begins with KCER; the rest of the deduction code values
depend on employees’ date of hire. |
For example, if an employee’s first check was 3/29/18 the DC deduction code
is KCEE01 (KCER01 employer share). If the employee’s first check was 8/18/17 the
DC deduction code is KCEE17 (KCER17 employer share). A Job Aid is being
developed with further explanation to assist agencies.
Note: Many Tier 4 employees were hired prior to when Tier 4 codes became
available and were temporarily enrolled in Tier 3. These employees will also
have a Tier 3 Catch-Up deduction that will end in June.
Agency users will see these deductions in their Tier 4 employees’ paychecks
beginning on Tuesday, April 3rd. Tier 4 Employees will see the new deductions in
their 4/13/18 check. The Tier 4 Catch-Up Deductions will continue for the
remaining 6 check dates in Fiscal Year 2018.
Users will be able see these new Catch Up Deductions in the Create General
Deduction Screen as View Only; agency personnel will be unable to alter the
page.
A detailed Comptroller’s Memorandum numbered 2018-05 explaining the DB & DC
Tier 4 Catch-Up Deductions is forthcoming.
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