USERRA Military Service Deposits & Applications

USERRAMilitary Service Deposits & Applications INDIANAPOLIS PAYROLL OFFICE September 2, 2014 Integrity - Service - Innovation

USERRA UNIFORMED SERVICES EMPLOYMENT AND REEMPLOYMENT RIGHTS ACT Integrity - Service - Innovation

USERRA Topics • USERRA Defined • Process Overview • Agency Responsibilities • Documents Needed • Documents Not Needed • PRO Responsibilities • Missed Contributions • USERRA Letter • Miscellaneous Integrity - Service - Innovation

USERRA - Defined • The Uniformed Services Employment and Reemployment Rights Act of 1994 (USERRA) allows eligible employees who separate from civilian service to perform military service • To make up missed Thrift Savings Plan (TSP) contributions if they return to civilian service under the provisions of USERRA • To receive agency contributions that could have been made or received if they had remained in civilian service or pay status Integrity - Service - Innovation

USERRA - Defined • Employees are eligible if: • They were separated from civilian service or were placed in non pay status to perform military service; • Their release from military service, discharge from a hospital, or other similar event occurred on or after August 2, 1990; and • They were reemployed in, or restored to, a position covered by FERS or CSRS pursuant to 38 U.S.C. Chapter 43 Integrity - Service - Innovation

USERRA - Process Overview • First POC on return to civilian pay status should explain employee’s TSP rights under USERRA • Employee has 60 days to determine if he or she wants to make up TSP contributions missed during the period of military service • Employee has 60 days to make a TSP Contribution election • Agency submits required documentation to PRO via REMEDY Integrity - Service - Innovation

USERRA - Process Overview • PRO calculates makeup contributions, agency matching, agency automatic 1% and sends letter notifying employee of calculation results • Employee has 60 days to respond to the missed contribution letter authorizing the missed contributions to be deducted from payroll Integrity - Service - Innovation

Agency Actions • Give employee opportunity to make up missed contributions on return to civilian pay status and explain employee’s TSP rights under USERRA • Provide employee copy of TSP Fact Sheet OC95-5 (5/2012) TSP Benefits That Apply to Members of the Military Who Return to Federal Civilian Service • Allow employee 60 days to determine if he or she wants to make up TSP contributions missed during the period of military service Integrity - Service - Innovation

Agency Actions • If employee elects to make up missed contributions, employee has 60 days to make a TSP contribution election for the LWOP period • Agency pays Lost Earnings (Breakage) on all Agency contributions for USERRA makeup contributions • Submit a Remedy ticket notifying PRO that employee has elected to enact his USERRA rights, ensuring alldocumentation needed is attached • Remedy Ticket Title: USERRA – TSP Integrity - Service - Innovation

Agency Actions - Documentation Needed • Memo request form to include • LWOP-US dates • Updated address • HRO/CSR contact information • Payroll Office • All SF-50’s for the time period while on LWOP-US • NOAC 473 Military LWOP – start date of military service • NOAC 292 Return to Duty (RTD) • Any Wage Changes Integrity - Service - Innovation

Agency Actions - Documentation Needed • Detailed Military Earnings Information to include ONE of the following: • Military Leave and Earnings Statements for full LWOP time frame, OR • Copy of Master Military Pay Account (MMPA) screens detailing the TSP breakdown , for each pay period included in LWOP time frame, OR • Copy of all HISTORY LES Display pages from DJMS detailing the TSP breakdown/basic pay for each pay period included in LWOP time frame • Employee signed statement if did NOT contribute to Military TSP Integrity - Service - Innovation

Agency Actions - Documentation Not Needed Please do not attach the following documentation to the Remedy ticket as the PRO cannot use them to process USERRA • Military Orders • Cannot be used in place of SF-50 NOAC 473 • DD214’s • Cannot be used in place of SF-50 NOAC 292 • W2’s • Cannot be used in place of Leave and Earning Statements, MMPA Screens or DJMS History display pages Integrity - Service - Innovation

PRO Actions Employee did not contribute to Military TSP • Calculate Base Pay during LWOP time frame using SF50’s • Calculate Agency Automatic 1%* based on Base Pay (Step 1) • Calculate Civilian TSP missed contributions during LWOP time frame using TSP-1 Election Form for LWOP period and Base Pay (Step 1) • If TSP-1 Election Form is not submitted for LWOP time frame, use contribution currently showing in DCPS • Immediately deposit Agency Automatic 1%* (Step 2) • The TSP will calculate and charge Breakage to the Agency • Send USERRA letter to employee • Employee has 60 days to reply to USERRA letter • Letter must be signed by employee to authorize missed contributions • Agency Matching contributions* are deposited to employee’s TSP account when the employee begins to deposit make up contributions *FERS employees only Integrity - Service - Innovation

PRO Actions Employee contributed to Military TSP 7. Determine TSP contributions based on Military Base Pay using Military payroll documentation 8. Reduce Civilian TSP missed contributions (Step 3) by actual TSP Military TSP contributions based on Military Base Pay (Step 7) 9. Calculate Agency Matching contribution* on Military TSP contributions based on Military Base Pay (Step 7) • Deposit Agency Automatic 1%* (Step 2) • Deposit Agency Matching contribution* on Military TSP contributions based on Military Base Pay (Step 9) • Send USERRA letter to employee • Employee has 60 days to reply to USERRA letter • Letter must be signed by employee to authorize missed contributions • Agency Matching contributions are deposited to employee’s TSP account when the employee begins to deposit make up contributions Integrity - Service - Innovation

USERRA – Missed Contributions • Maximum payback time is 2x the number of missed pay periods • PRO processes manually each pay period • TSP applies missed contributions to applicable deferral year • Will show on Current Year W2 for tax benefit Integrity - Service - Innovation

USERRA – Missed Contributions • If Employee decides to STOP making these contributions • Decision is irrevocable • Monies cannot be refunded • If Employee decided initially to NOT make up contributions • Decision is irrevocable Integrity - Service - Innovation

USERRA Letter • USERRA Letter includes • Employee Name and Address • LWOP Period • Total Missed TSP deductions • Total Uniformed Service TSP contributions made during LWOP Period • Total Missed TSP deductions eligible to make up • Automatic Agency 1% (FERS only) applied & pay period processed • Agency Matching contributions (FERS only) • Applied to Uniformed Service TSP contributions & pay period processed • To be applied to future eligible Missed TSP deductions Integrity - Service - Innovation

USERRA Letter • Instructions to Employee • Select option to decline deduction of missed TSP contributions • Select option to make up missed TSP contributions • Indicate number of pay periods needed to make up missed TSP contributions • Sign, date and return by fax within 60 days Integrity - Service - Innovation

USERRA Letter Integrity - Service - Innovation

Suspending TSP Loan due to Military Service • Agency completes TSP-41 to notify TSP (the Record Keeper) that Employee is on leave due to military service • Must include beginning date of Non Pay Status • Must be certified by an Agency Official • Must be mailed or FAXED to TSP • When TSP receives completed TSP-41 • Loan payments will be suspended for the period of military service • Interest will continue to accrue during the period of military service • The time period for repaying the loan is extended by the period of military service • Employee will receive a confirmation notice from TSP that loan has been suspended [FACT SHEET OC 95-4] Integrity - Service - Innovation

Resuming TSP Loan on Return to Civilian Service • Agency completes TSP-41 to notify TSP (the Record Keeper) that Employee has returned to civilian service • Must include ending date of Non Pay Status • Must be certified by an Agency Official • Must be mailed or FAXED to TSP • When TSP receives completed TSP-41 • Loan will be reamortized to include interest for the period of military service • Loan payments may be increased • The time period for repaying the loan is extended by the period of military service • Agency and Employee will receive notification from TSP that loan has been reamortized [FACT SHEET OC 95-5] Integrity - Service - Innovation

TSP Loan Closed as Taxable Distribution • Reversing a taxable distribution • Employees who had TSP loans that were closed as taxable distributions because they separated to perform military service may be eligible to have the taxable distributions reversed after they return to civilian service. • TSP Fact Sheet (Page 4) explains eligibility and describes the actions employees must take to have taxable distributions reversed. [FACT SHEET OC 95-5] Integrity - Service - Innovation

DOCUMENTS NEEDED by PRO to Calculate Missed TSP Contributions Memo request form TSP-1 for LWOP timeframe SF50’s for LWOP timeframe NOAC 473 Military LWOP NOAC 292 Return to Duty (RTD) Any Wage Changes LWOP Leave & Earnings Statements or Copy of Master Military Pay Screens or LES History Display Pages from DJMS Employee signed statement if did NOT contribute to Military TSP DOCUMENTATION NOT NEEDED by PRO Military Orders DD214 W2C’s NOTIFY TSP TO SUSPEND LOAN Complete TSP-41 & send to TSP Include start date of LWOP NOTIFY TSP TO RESUME LOAN Complete TSP-41 & send to TSP Include start and stop dates of LWOP MISSED EMPLOYEE TSP CONTRIBUTIONS Are not processed without signed and completed form letter from employee AGENCY CONTRIBUTIONS FERS Agency1% is deposited immediately FERS Agency Matching Deposited immediately for Military TSP contributions Deposited at time of make up contributions USERRA Quick Tips

Information • www.tsp.gov • Thriftline 1-TSP-YOU-FIRST (1-877-968-3778) • https://www.tsp.gov/lifeevents/military/returningToService.shtml Fact Sheet OC95-5 (5/2012) TSP Benefits That Apply to Members of the Military Who Return to Federal Civilian Service • https://www.tsp.gov/PDF/formspubs/oc95-4.pdf Fact Sheet OC95-4 (2/2013) Effect of NonPay Status on Your TSP Account • Bulletin 12-11 Revision of Form TSP-19, Transfer of Information Between Agencies Integrity - Service - Innovation

Military Service Deposit Topics Integrity - Service - Innovation Military Deposit Applications Required Forms Submitting Forms After the Military Service Deposit is set up in DCPS Payment Options MSD Transfers Paid in Full Letters

Military Service Deposit (MSD) Integrity - Service - Innovation Military Service Deposits are for currently employed employees who have served in the Military and want to buy back their Military time towards Civilian service. Separated employees - DFAS requires an Agency Error Letter from employee’s HR director for MSD applications/payments submitted after employee’s date of separation. New OPM directive. Military Service Deposits are Voluntary. Military Service Deposits are NOT debts.

Military Service Deposit (MSD) Integrity - Service - Innovation • CSR/HR is responsible for ensuring that • Employee is currently employed • Required information is provided • Appropriate MSD Application • Estimated Earnings During Military Service RI 20-97 • All forms are complete and appropriately signed by employee and the CSR/HR

Required Forms for MSD Application - FERS Integrity - Service - Innovation • FERS employees – Federal Employees Retirement System • SF3108 - Application to Make Service Credit Payment • FERS employee completes SF3108 (Part A) • Agency completes SF3108 (Part B) - Items 1, 2 and Signature Blocks • SF3108A – Application to Pay Military Deposit For Military Service Performed After December 31, 1956 • Employee completes Information about Military Service • Employee adds signature, Email Address, Date Signed • Agency Identifies/Adds • Retirement System that applies to employee • If USERRA applies to Period of Service • Interest Accrual Date • Agency Official Signature/Date

Required Forms for MSD Application - FERS SF-3108 PART B FERS Items 1 and 2 need to be completed. Part B is completed by Agency • Must be signed by CSR If not, document will be returned for correction Integrity - Service - Innovation

Required Forms for MSD Application - FERS Must match SF-3108 SF-3108A FERS Blocks Must Be Completed by FERS Employee & Agency Employee also signs, dates & adds email/phone information MUST HAVE CSR SIGNATURE Integrity - Service - Innovation

Required Forms for MSD Application - CSRS Integrity - Service - Innovation • CSRS employees – Civil Service Retirement Service • SF2803 – Application to Make Deposit or Redeposit • CSRS employee completes SF2803 (Part A) • Agency completes SF2803 (Part B) - Items 1, 2 and Signature Blocks • SF3108A – Application to Pay Military Deposit For Military Service Performed After December 31, 1956 • Employee completes Information about Military Service • Employee adds signature, Email Address, Date Signed • Agency Identifies/Adds • Retirement System that applies to employee • If USERRA applies to Period of Service • Interest Accrual Date • Agency Official Signature/Date

Required Forms for MSD Application - CSRS SF-2803 CSRS • VERIFY NAME AND SSN • Does it match the other documents? • Does it match DCPS? Part A is completed by CSRS employee Integrity - Service - Innovation

Required Forms for MSD Application - CSRS SF-2803 Part B CSRS Item 1 and 2 need to Be completed. Part B is completed by Agency • Must be signed by CSR If not, document will be returned for correction Integrity - Service - Innovation

Required Forms for MSD Application - CSRS SF-2803A Must match SF-2803 CSRS Blocks Must Be Completed by CSRS Employee & Agency Employee also signs, dates & adds email/phone information MUST HAVE CSR SIGNATURE Integrity - Service - Innovation

Required Forms for MSD Application - USERRA Integrity - Service - Innovation • If USERRA rules apply, one of the following is required • Completed USERRA Military Service Deposit Report (MSDR), OR • Completed Federal Retirements Benefits computing deposits and re- deposits report. • Instructions for computing a USERRA are provided in the Office of Personnel Management Benefits and Administration Letter BAL 03-105. Uniformed Services Employment and Reemployment Rights Act of 1994

Required Forms for MSD Application – RI 20-97 Integrity - Service - Innovation • Completed Request for Estimated Earnings During Military Service RI 20-97 must accompany all MSD Applications • Request for estimated earnings should be sent to employee’s branch of service Military Pay Office. • This should be the first action initiated by the employee/agency as it could take up to 180 days to obtain information from the military payroll office. (See attached Military Pay Office listing) • Civilian Payroll Office cannot provide estimated earnings. • An Estimate of Earnings Tool is available at: http://www.dfas.mil/civilianemployees/militaryservice/militaryservicedeposits.html. • Estimator results provide approximate amounts to help an employee who is deciding to pursue buying back military time. • Estimator results are unofficial and cannot be used to buy back military time.

Submitting MSD Applications Integrity - Service - Innovation Submit MSD Applications via Remedy. Please do not mail the application to the Payroll Office (PRO). Remedy tracks when a ticket is originated, who answers the ticket and the amount of time to respond. Remedy allows the CSR to reply if the answer needs clarification or if additional information is needed Submit all information at one time to ensure timeliness

Submitting MSD Applications Integrity - Service - Innovation • If submitting multiple military service periods with different Interest Accrual Dates (IAD), only one IAD can be entered into DCPS at a time. If there is more than one Interest Accrual Date, a separate Remedy ticket must be submitted when it is time to start the next MSD period of service. • Exception to this rule is if employee wants to pay one lump sum for all deposit amounts regardless of IAD

Submitting MSD Applications Integrity - Service - Innovation • Encourage employees who want to buy back Military service time to make requests as soon as possible • 30 business day customer expectation for MSD Applications • PRO does not expedite these due to an employee’s approaching retirement date • Recommend CSR/HR submit MSD for employee AT LEAST six months prior to separation

After the MSD is Established in DCPS Integrity - Service - Innovation • PRO starts MSD collections in the pay period they are worked. • MSD collections cannot be ‘post dated’ in a current pay period to start in a future pay period. • Employees requesting to start MSD collections in a future pay period must provide the pay period ending date, not the pay date. • PRO will send employee a letter when MSD is established to include • periods of service, • total amount due, and • payment options

MSD Payment Options Integrity - Service - Innovation • Payroll Deductions can be any amount employee chooses but must be a minimum of $25.00 per pay period. There must be a written request (no particular form) submitted to PRO that includes: • Social Security Number, • Name, • Amount of deduction per pay period, • Date to start the deduction (future only), and • Signature. • Request must be Faxed to 1-866-401-5849 or submitted via Remedy using the ‘Military Deposit Payment’ title.

MSD Payment Options Integrity - Service - Innovation • Lump Sum Payment checks must be made payable to ‘DFAS-Cleveland’ • Write on the check • 'Catch-62 Military Deposit' and • Employee’s Social Security Number • Include a copy of the MSD letter • Mail to the address provided on the information letter. • The payment posting date will be the date DFAS Cleveland processes the payment not the date the employee dated the check or mailed the check. • Any interest that accrues between the time the check is mailed and the processing date of the check is the responsibility of the employee.

MSD Payment Options Integrity - Service - Innovation • Partial Payments must be a minimum of $25.00. Partial payments can be made along with regular Payroll deductions. Follow the same instructions for Lump Sum Payments. • Agent Cashier Payments • Send copy of Field Service Receipt, IPAC processing form or FASPAC processing form. • Payment date is the date funds reach DFAS Cleveland Treasury account. • Payment date is NOT the date of the Field Service Receipt or the IPAC processing date.

MSD Payment Options Integrity - Service - Innovation • Military Service Deposit MUST be paid in full prior to retirement • Affects retirement benefit • New Payment Option through ‘Pay.Gov’ • Fast, convenient way to make an MSD payment • Deposited into DFAS Cleveland’s disbursing account within 24 hours.

Transfer of MSD Information Integrity - Service - Innovation When an employee transfers from one DCPS database to another DCPS database, DCPS does NOT automatically transfer the MSD record. CSR/HR must submit a Remedy Ticket for this to occur. PRO will only transfer MSD records with balances

Transfer Of MSD Information (Cont’d) Integrity - Service - Innovation • Following is the procedure if neither the Indianapolis PRO nor the Cleveland PRO have access to the prior database (i.e. Homeland Security, Postal Workers, CIA, IRS, and probably others) • CSR/HR will need to contact employee’s prior PRO • Request MSD Information to be accompanied by OPM 1514 Military Deposit Worksheet • Appropriate supporting documentation should be attached such as • Application • Estimated Earnings • Post 56 Forms

Paid in Full Letters Integrity - Service - Innovation • The Payroll Office (PRO) no longer issues forms OPM 1514 (except to OPM). Employees now receive a Paid in Full Letter. • For Lump Sum Payments, a Paid in Full letter is sent immediately upon a zero balance (Note: This does not include payroll deductions). • CSR\HR must request a Paid in Full letter via Remedy using the Paid in Full Letter ticket title. • Employee will be mailed the Paid in Full letter upon request • CSR/HR should obtain a copy of the letter from the employee, not the PRO

Paid in Full Letters Integrity - Service - Innovation • PRO is working towards no longer providing Paid in Full Letters. • NOT Required by OPM • OPM utilizes the employee SF3100 Individual Retirement Record (IRR card) for verification of MSD history • Paid In Full letters are for Information purposes only. There is no value added for employee or HR. • CSR/HR can submit a remedy ticket requesting periods paid, if necessary, for retirement estimate OR can contact the OPM retirements office and request a copy of the employee's IRR card listing any Military Service Deposits the employee paid.

Estimated Earnings Requests • Army and Air Force DFAS-Indianapolis Center Army Military Pay Operations ATTN: Verification Section (Estimated Earnings) 8899 East 56th Street Indianapolis, IN 46249-0875 Phone (317) 212-2813/0157 Fax: (317) 275-0123 • Navy and Marine Corps DFAS-Cleveland Center ATTN: DFAS-CL/JFLA 1240 East 9th Street Cleveland, OH 44199-2005 Phone: 1-888-332-7411 Fax: (216) 367-3587 Email: CCL-CATCH-62@DFAS.MIL • National Oceanic and Atmospheric Administration (NOAA) NOAA Commissioned Personnel Center 1315 East-West Highway Rm. 12100 Silver Spring, MD 20910-3282 • Coast Guard Pay and Personnel Center 444 Southeast Quincy Street Topeka, KS 66683-3591 Phone: (785) 339-2200 Fax: (785) 339-3784 • Public Health Service Division of Commissioned Personnel Compensation Branch Park lawn Building Rm. 4-50 5600 Fisher’s Lane Rockville, MD 20857 Phone: (301) 594-2963 Fax: (301) 443-0064 For more information visit http://www.dfas.mil/dfas/civilianemployees/militaryservice/militaryservicedeposits.html Integrity - Service - Innovation

USERRA Military Service Deposits & Applications