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Core-CT HRMS Daily Mail

Date: 4/3/2018

Tier 4 Catch-Up Deductions in the 4/13/18 Check Date

The 2017 SEBAC Agreement defined a new Tier 4 Pension Plan, which was comprised of both a traditional Defined Benefit (DB) component and a new Defined Contribution (DC) component. Each of these includes both employee and employer share deductions. Due to the delayed implementation of the Tier 4 Plan, Catch–Up deductions have been created to collect the missed contributions for both the employee and employer shares.

Tier 4 Employees will have TWO permanent employee share deductions (both DB and DC) as well as TWO Catch–Up employee share deductions (DB and DC). There are also corresponding Employer shares for each. The DB deductions were added by the agencies; the DB Catch-Up, DC and DC Catch-Up deductions were added centrally. The Catch-Up deductions are temporary, and will end with the final payment on the check dated 6/22/18.

For example, for an employee hired into Tier 4:
 

1 - RSER4 is the permanent DB retirement deduction; RSERER is the permanent DB employer share.
2 - CDSER4 is the corresponding DB Catch-Up Deduction. There is no employer DB catch-up.
3 - RSERDC is the permanent DC deduction: RSERDR is the permanent DC employer share.
4 - The DC Catch-Up for employee begins with KCEE and the employer DC Catch-Up begins with KCER; the rest of the deduction code values depend on employees’ date of hire.


For example, if an employee’s first check was 3/29/18 the DC deduction code is KCEE01 (KCER01 employer share). If the employee’s first check was 8/18/17 the DC deduction code is KCEE17 (KCER17 employer share). A Job Aid is being developed with further explanation to assist agencies.

Note: Many Tier 4 employees were hired prior to when Tier 4 codes became available and were temporarily enrolled in Tier 3. These employees will also have a Tier 3 Catch-Up deduction that will end in June.

Agency users will see these deductions in their Tier 4 employees’ paychecks beginning on Tuesday, April 3rd. Tier 4 Employees will see the new deductions in their 4/13/18 check. The Tier 4 Catch-Up Deductions will continue for the remaining 6 check dates in Fiscal Year 2018.

Users will be able see these new Catch Up Deductions in the Create General Deduction Screen as View Only; agency personnel will be unable to alter the page.

A detailed Comptroller’s Memorandum numbered 2018-05 explaining the DB & DC Tier 4 Catch-Up Deductions is forthcoming.

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