Purpose

To notify agencies that OSC will process a final refund file for employees that are due a bond deduction refund as identified by National Bond and Trust (NBT)

Affected Employees

Employees that:

• Cancelled their bond deduction or became inactive between 1999 and 2005, and
• Did not accumulate sufficient funds to purchase a bond as determined by NBT, and
• Did not receive a refund previously in paychecks dated March 10, 2011 (Institution) or March 16, 2011 (Administration).

Effective Date(s)

Paychecks dated August 17, 2011 (Administration)
Paychecks dated August 25, 2011 (Institution)

Background

NBT identified these outstanding refunds for inactive accounts while preparing to close in December 2010.

They were submitted on a separate file by NBT and were excluded from the initial refunds processed in March in order to allow time for OSC to conduct a review of employee records and confirm that refunds were not previously issued to the employees during the period of inactivity.

OSC Actions

OSC will process the refunds in the Administration paychecks dated 08/17/11 and Institution paychecks dated 08/25/11.

The refund amount will be reflected on Check/Advice Statements under “AFTER TAX DEDUCTIONS”. The amount will appear as a positive amount under the “Refund” field and as a negative amount under the “YTD” field.

Agency Actions

Refunds issued to inactive employees that are returned to the agency as undeliverable should be forwarded to the NYS Department of Tax and Finance, Division of Treasury, per the instructions in Payroll Bulletin No. 908.

Refunds issued to employees who are now deceased should be returned to OSC with a completed Next of Kin Affidavit (Form AC 934-P) and a Report of Check Exchange (Form AC 1476-P).

Questions

Questions regarding this bulletin may be directed to the Payroll Deduction mailbox.