| | Make-Up Contributions Due to Active Military Service The Uniformed Services Employment and Reemployment Rights Act (USERRA), which was signed into law on October 13, 1994, protects the benefits rights of veterans returning to their jobs after periods of service. This law allows returning reservists to "make-up" deferrals they were unable to make to
Peach State Reserves while they were on active duty. Returning reservists have a time period equivalent to 3 times the period of qualifying military leave or five years, whichever is less, to make-up the deferrals (e.g. if the reservist serves on active duty for 1 year, 3 years are available to make-up deferrals; if the reservists serves on active duty for 6 months, 18 months are available to make-up deferrals).
Peach State Reserves is in the process of creating a special application that must be completed by the returning reservist, if they choose to make-up deferrals. Along with submission of the application, returning reservists must supply Standard Form 180 Request Pertaining to Military Records, in order to provide verification of active service. Upon approval from
Peach State Reserves, the reservist may simply change their deferral amount to make-up missed deferrals. Employers must report all make-up contributions on Form W-2. A copy of approved applications for make-up contributions will be sent to payroll offices so that contributions can be properly assigned in order to ensure that accurate W-2’s are generated. For those employers using the
state PeopleSoft payroll system, please refer to the appropriate Business Processes prior to setting up the deductions in
PeopleSoft. This is imperative in order to ensure correct issuance of W-2s. For those employers who do not use the
state PeopleSoft system, you must ensure that the W-2s are correct for any employees utilizing this benefit. The make-up deferrals should be reported in Box 13, using code D (401(k)) or G (457) along with the applicable year (e.g. 401(k) make-up contributions that the employee defers in 2008 for missed 2007 deferrals, totaling $1,250 should be reported in Box 13 of the 2008 W-2 as "D-2007-1250.00". The approval document from
Peach State Reserves will clearly indicate the deferral amounts that should be assigned to the relevant year(s) of missed deferrals.
If you have any questions concerning your eligibility to make-up deferrals due
to active military service or if you need an application, please contact
CitiStreet at 1-866-694-2777. |
