DATE: April 2, 2012
SUBJ: Deferred Compensation Conversion and Match
Pursuant to the State of Minnesota’s collective bargaining agreements and compensation plans, state employees may be eligible for benefits related to their deferred compensation plans.
Automatic Deferred Compensation Match
Many of the state’s collective bargaining agreements and compensation plans provide for an employer-paid deferred compensation match. Some agreements and plans provide for a vacation leave conversion to deferred compensation option as a substitute for the match. For employees in salary authorities that are only eligible for a deferred compensation match (and not vacation leave conversion), the match occurs automatically provided the employee has a deferred compensation deduction in place. The agency does not enter a transaction nor is an employee required to complete a form to receive the match.
Deferred Compensation Option
Employees covered by the Commissioner’s Plan, Managerial Plan, and Medical Specialists’ Addendum to the Commissioner’s Plan may select the optional deferred compensation match or convert vacation leave to deferred compensation once each fiscal year. This will not happen automatically and they cannot select both options.
NOTE: The MMA bargaining agreement allows supervisors who are at the maximum of their salary range or who attain the maximum rate of their range no later than June 30 of the fiscal year to convert up to forty (40) hours of vacation leave to deferred compensation. If a supervisor elects the match option, they can enter this in Self Service on the Deferred Comp Conv/Mtch Option page or by submitting the Selection of Deferred Compensation Option form to their agency payroll office. If a supervisor elects the vacation conversion option, they should submit the Selection of Deferred Compensation Option form to their agency payroll office for eligibility verification and processing, as this cannot be entered in Self Service.
Compensatory Time Conversion
Employees covered by eligible bargaining agreements or compensation plans (AFSCME, MMA, MNA, MGEC, MAPE and Commissioner’s Plan) may choose to convert compensatory time to deferred compensation once each fiscal year.
Deferred Compensation Plan
To receive a vacation leave or compensatory time conversion, you are not required to have a deferred compensation deduction set up. Your conversion will be processed and invested in the Target Retirement Income Fund until/unless you have directed otherwise by accessing www.mndcplan.com, establishing an account, and choosing investment options.
Employees who need to enroll in the Minnesota State Deferred Compensation Plan can find plan information and an enrollment form at www.mndcplan.com.
Deadlines
Please be aware of the deadlines. You should request vacation leave conversion or optional deferred compensation match prior to the deadlines whenever possible. This allows time for processing and for necessary corrections should the need arise.
Date / Deadline /6/19/2012 / Last day to process deferred compensation match for FY 2012.
6/19/2012 / Last day to process vacation leave conversion for FY 2012.
6/20/2012 / First day to process deferred compensation match for FY 2013.
7/3/2012 / This is the pay period end date for the split pay period.
· Vacation leave conversion cannot be processed on the split pay period of any year.
· Compensatory time conversion may be processed on the split pay period. Compensatory time conversions entered in Self Service on June 20th through June 30th will apply to FY 2012. Compensatory time conversions entered in Self Service on July 1st or after will apply to FY 2013.
7/4/2012 / First day to process vacation leave conversion for FY 2013.
Requesting Vacation Leave Conversion/Deferred Compensation Match/Compensatory Time Conversion
Employees who have an option of vacation leave conversion or optional deferred compensation match and/or compensatory time conversion can indicate their option(s) through Self Service or by submitting the Selection of Deferred Compensation Option form to their agency payroll office. This must be done no later than the pay period end date in order to be processed in that pay period. The optional match will occur as soon as possible provided the employee has a deferred compensation deduction in place.
MMA employees may select the deferred compensation match option in Self Service; but if they want to select the vacation leave conversion option, they must submit the Selection of Deferred Compensation Option form to their payroll office no later than June 7 for eligibility verification and processing. However, they cannot select both options.
NOTE: The MMA agreement allows supervisors who are at the maximum of their salary range or who attain the maximum salary rate of their range no later than June 30 of the fiscal year to convert up to forty (40) hours of vacation leave to deferred compensation.
To select a deferred compensation conversion/match option in Self Service, use the Deferred Comp Conv/Mtch Option page. For instructions on selecting a deferred compensation conversion/match option in Self Service, click Self Service – Deferred Compensation Conversion/Match Option Instructions.
If you choose not to enter your deferred compensation selection in Self Service, you can print the Selection of Deferred Compensation Option form from Self Service. Click Other Payroll, and then Payroll Forms. Paper forms should be submitted to your HR/Payroll office.
Submitted forms must meet the following criteria:
· No alterations or corrections can be made on any form. If you have crossed out and rewritten information on a form, you must complete a new one.
· You must sign and date all forms. A form without a date or signature is invalid.
· All forms must be completed in ink.
Questions
If you have questions, please contact your HR/Payroll office. You can obtain contact information from within Self Service: under Need Assistance, select Employee Contacts.