This email is intended to document the roles and responsibilities associated with reporting lump sum payments to the Deferred Compensation Program (DCP). Separating and retiring state agency employees can choose to have their lump sum payments (unused leave cash outs and incentive payments are the two typical examples) reported to DCP.
Both current participants and those who have never signed up for DCP can take advantage of this one-time option. For employees who want to defer lump sum payments and have them reported to DCP, several steps have to occur:
Each action identified above must happen to ensure the deferral is posted to the participant’s account. The pay date and deferral amount have to be aligned and correct for this one-time deferral to process successfully.
Below is a sample email that represents what we will be sending to employers as of July 1, 2011:
Subject Line: Lump Sum Payment to DCP – last name, first name
"Participant’s name" has completed a contract to defer their annual leave cash out based on unused annual leave hours. Please verify the following information is correct:
Additional identification: xxx-xx-0001
Amount to be deferred: xxxxxxx
Cash out (buyout) payment date: xxxxxxx
This email is notification that HRMS will be automatically updated to reflect information above (deferral amount and payment date). Thank you for confirming this information is correct.
DCP employee contact information
We have received employer requests to start informing them when we get requests of this type. We also received confirmation this spring from the Personnel/Payroll Association that sending an email would be helpful. If you have any questions or comments regarding this new process, please email DCP.
Verifying the information we send you is correct is necessary to ensure lump sum payments are processed. Thank you in advance for your support of this process that allows employees this immediate tax deferral and investment opportunity.
If you have any questions regarding this DRS Notice, please contact Employer Support Services at 360-664-7200, option 2, or 800-547-6657, option 6, option 2; or e-mail us.