04-P-010 Deferred Compensation Loan Program
|DATE:||October 24, 2003|
|SUBJECT:||Deferred Compensation Loan Program|
|EFFECTIVE DATE:||Payroll Period Beginning November 9, 2003|
|CONTACT:||Janice Wolfley||(785) firstname.lastname@example.org|
|SUMMARY:||Deferred Compensation Loan Program|
The deferred compensation contract with ING-AFS effective January 1, 2003 provides an option to establish a loan program. The State of Kansas amended the State of Kansas Deferred Compensation Plan to allow for loans from the plan in a document signed September 12, 2003. The State of Kansas 457 Deferred Compensation Loan Program will be available to eligible employees beginning with the payroll period beginning November 9, 2003 and ending November 22, 2003 paid December 5, 2003. Employees can sign up for the loan program through their ING representative. The Deferred Compensation Oversight Committee will be providing additional information in the near future regarding the deferred compensation loan program, including a list of program guidelines.
ING-AFS will interface new loan repayment enrollments biweekly into SHARP along with the regular deferred compensation enrollments. The interface will also include changes to existing loan payment amounts necessitated by the occurrence of a qualified leave of absence or in the event of a loan prepayment. The interface will include loan repayment enrollments/changes for employees at Regents' Institutions in addition to SHARP employees. In order for Regents' Institutions to be aware to update their individual systems with the loan repayment enrollments/changes, ING-AFS will also notify each Regent Institution directly (similar to the process for regular deferred compensation enrollments). Loan payment deductions will be set up on the General Deduction Table as after tax payroll deductions using deduction code '457DCL' (457 Deferred Compensation Loan). Loan payment deduction amounts will be remitted to ING-AFS on the biweekly remittance file along with regular deferred compensation contribution amounts.
A Leave of Absence report will be sent to ING-AFS by Payroll Services each payroll period identifying all employees with deferred compensation loans who are going on or returning from qualified leave. The following Action/Reason codes will be used to identify employees going on a qualified leave of absence:
|ACTION Code:||REASON Code:|
|HEA (Health Reasons)|
|SEA (Seasonal/Not scheduled to work)|
|SOP (Sabbatical/Professional Leave)|
|SWP (Summer Leave with Benefits)|
The following Action/Reason codes will be used to identify employees returning from a qualified leave:
|ACTION Code:||REASON Code:|
|RFL||RFL (Return from Leave)|
|SLR (Summer Leave Return)|
The Division of Accounts and Reports, Payroll Systems Team, is responsible for setting up the new general deduction in SHARP. Regents' Institutions are responsible for ensuring this change is updated in their individual systems.