Purpose
The purpose of this bulletin is to provide information to agencies regarding a change in deduction priorities for After Tax 403(b) deductions in PayServ.
Affected Employees
Employees participating in both the 403(b) and Deferred Compensation programs are affected.
Effective Dates
Changes will be made effective in Institution paychecks dated May 5, 2022 and Administration paychecks dated May 11, 2022.
OSC Actions
Per Payroll Bulletin 1374, the Deduction Priority Schedule is used to determine the order in which deductions are taken when an employee’s gross salary is insufficient to cover all their deductions.
OSC Payroll has made updates to the deduction priority for 403(b), Plan Type 47.
Deductions will be withheld in the following priority:
- Before Tax SRA/TDA, Plan Type 46
- Before Tax Deferred Compensation Plan, Plan Type 49
- After Tax Deferred Compensation Plan, Plan Type 49
- After Tax SRA/TDA, Plan Type 47
Agency Actions
Agency payroll officers should notify employees that they may see changes in the order in which their deductions are withheld.
Questions
Questions may be directed to the Payroll Retirement mailbox.