| Employee Participation | How do employees begin, change, and stop their contributions? | Employees may begin, make changes to, and stop their contributions by using the Program's website at www.Ohio457.org or by contacting the Service Center toll-free at 877-644-6457.
On the web, employees who want to start contributing to the Program will access the tab labeled "Enroll."
Employees already making contributions to the Program who want to make changes may log in to the Program's website at www.Ohio457.org. Current account information may be reviewed and changes may be submitted.
Account information and changes may also be requested by telephone using the automated telephone system at 877-644-6457.
Account Executives are available Monday through Friday from 8:00 a.m. - 5:30 p.m. to assist employees by calling 877-644-6457 and pressing 3 to speak with an Account Executive.
Payroll departments are advised of changes on the Payroll Reduction Change Report sent by the Program and not from the employee.
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| Employee Participation | What if I have an employee who is already participating in another deferred compensation program? | Each type of plan has annual contribution limits. An employee contributing to a 403(b) plan will have a contribution limit for that plan that is not considered for other types of plans. Employees may contribute to more than one 457(b) deferred compensation plan as long as the combined contribution total does not exceed the annual contribution limit.
For further information the employee should contact our Service Center. Account Executives are available during business hours to assist employees by calling 877-644-6457 and pressing 3 to speak with an Account Executive.
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| Employee Participation | What are the procedures for an employee to contribute in the "50 plus" and "Catchup" designations? | Employees need to contact our Service Center for details by calling 877-644-6457. To be transferred to an Account Executive - press 3 after the recording begins.
The chart below shows the contribution limits for several years. These limits are subject to change according to IRS rules.
Year Contribution Designation Maximum Contribution |
2012 Regular
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$17,000
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Fifty-Plus
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$22,500
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Catchup
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$34,000
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2011 Regular
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$16,500
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Fifty-Plus
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$22,000
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Catchup
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$33,000
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2010 Regular
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$16,500
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Fifty-Plus
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$22,000
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Catchup
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$33,000
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| Remitting Contributions | What if I am unable to remit a contribution for an employee? | This can happen due to:
· Leave without pay
· Employee termination or death
· Inadequate pay to cover contribution, etc.
In order to process an investment, Ohio Deferred Compensation must reconcile the total of the detail on the contribution billing to the remitted amount. Employers should make appropriate brief notes on the contribution billing explaining the omission. The total on the contribution billing should be changed to reflect an accurate total.
Note: Employers remitting electronically will show the omission in the detail of the file they remit.
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| Remitting Contributions | What if I receive my change report too late to take a deduction for an employee? | The deduction should be taken at the next payroll cycle. If the employee does not wish to "miss" the deduction, the amount may be doubled on the next payroll cycle and then set back to the regular amount thereafter.
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| Remitting Contributions | If I miss sending a contribution for an employee, is it OK if I send it along with the next payroll contribution? | As long as the employee will not exceed his or her contribution limit for the calendar year, we can accept a missed contribution with the next payroll.
The employer should include a brief explanation for the change on the contribution listing when remittal occurs.
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| Remitting Contributions | Is there a method for sending my billing reports and deductions to Ohio Deferred Compensation electronically? | Yes. The Ohio Business Gateway allows you to file and pay several payroll withholdings, including Ohio Deferred Compensation. Visit www.ohiobusinessgateway.ohio.gov for more information or contact the Finance Department at 614-466-7245 for more details.
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| Remitting Contributions | How do I get a contribution back from Ohio Deferred Compensation if I send it in error for an employee? | To obtain a refund, a Refund Request Form must be completed with the following information
· Employee name
· Social Security Number
· Payroll date
· Amount to be refunded
· A brief explanation for the request:
Ohio Deferred Compensation
257 East Town Street, Suite 400
Columbus, OH 43215
Fax 614-728-2601
Refunds are processed within 48 hours of receipt. You can expect to receive a check within 5-7 business days.
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| Remitting Contributions | When an employee is using accumulated leave time to make a "lump-sum" contribution from his or her final contribution, the contribution amount may not be the same as what appeared on the Employee Contribution Billing. | If the amount received by Ohio Deferred Compensation is less than the amount billed, the lower amount will be accepted.
If the amount received by Ohio Deferred Compensation is more than the amount billed, the higher amount will be accepted as long as it does not cause the employee to exceed the annual contribution limit.
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| Remitting Contributions | I usually have 26 payroll dates in a year, but this year I have 27. How do I handle contributions for this extra date? | In order to prevent employees who are contributing the maximum amount from exceeding the annual limit, a deduction may not be taken for these employees with the 27th pay.
Normally, you may not change an employee's contribution without a Payroll Reduction Change Report from the Program. However, Employers are responsible for stopping or reducing deductions, if it is necessary to prevent an employee from exceeding allowable limits.
It is important that you prevent over-deferrals before they happen. This will eliminate the need for subsequent refunds, as well as correction to W-2's and related tax forms. Should you have questions about this information please call the Program at 614-466-7245.
Employers may omit contributions for only the employees contributing the maximum amount or they can choose to skip taking the contributions for everyone on the 27th pay.
Any contributions skipped should be reactivated for the first payroll in the new year.
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| Payroll and Payroll Contact Changes | If my payroll calendar changes, do I need to inform Ohio Deferred Compensation? | Yes. We will need to make changes to our computer system to reflect the correct payroll dates and number of payroll dates in a year.
We bill according to the number of pays from which deferred compensation is withheld. The number of pays might be different than the actual number of pays.
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| Payroll and Payroll Contact Changes | What if an Employer has changes in address, phone numbers or payroll contacts? | Our records need to be updated with the current address and contact information. Employers should convey this information to the Program via mail, telephone, fax or email.
Ohio Deferred Compensation
257 East Town Street, Suite 400
Columbus, OH 43215
Phone 614-466-7245
Fax 614-728-2601
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| Unforseeable Emergency | I have an employee who is applying for an Unforseeable Emergency withdrawal from the Program. What information does the Program need from me for this employee's request? | Documentation of lost wages is needed from the Employer. Information specified on the Loss of Income form must be supplied to the Program on the Employer's letterhead. This information can then be mailed to:
Ohio Deferred Compensation
257 East Town Street, Suite 457
Columbus, Ohio 43215
or faxed to: 614-728-2601
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| Employer Match | | Yes, an Employer may match employee deferrals to a 457(b) plan subject to the normal annual deferral limits. |
| Employer Match | | An Employer match program is a relatively low-cost benefit that may help attract and retain quality employees. Also, Employer match programs may be the incentive needed to motivate your employees to begin saving for retirement.
1. Attracting and retaining employees
An Employer match will provide a competitive advantage over many other Employers that can help attract and retain quality employees.
2. Lower cost to EmployerBecause Employer match contributions are pre-tax, the same impact on employee take home pay can be achieved at less cost than providing a pay increase.
3. Added value to employeesMost employees are not saving enough for retirement. Employer match plans are a proven way to increase the number of employees saving for retirement while offering employees additional savings at no additional cost.
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| Employer Match | | No. There is no Plan Document amendment necessary to provide a matching contribution. |
| Employer Match | | The simplest way to set up an Employer match program is for the Employer to provide an additional amount of compensation per pay, i.e. the match, to those employees participating in the Program. The additional compensation is only for those employees actively participating, or who choose to participate, and would be discontinued if an employee cancels their contribution.
The Program will keep records for the total amount contributed each pay period. Since a vesting schedule is not permitted, the separate sources of these contributions are not segregated on our system. Ohio DC will send a bill to the Employer for each pay period showing the total contribution amount. |
| Employer Match | | Yes. Experience has proven that Employers who match contributions on a per-pay basis find it to be the simplest process for both the Employer and the Program. Under this scenario, the Employer would increase the participating employees’ per-pay compensation, which would then become part of the employee’s contribution. This increase is contingent upon the employee actively participating in the Program. If an employee cancels their contribution, the Employer would simply remove the additional compensation from the employee’s payroll record. |
| Employer Match | | Yes. We have Employers who provide a one-time, lump-sum match amount. This process is more involved for both the Employer and Ohio Deferred Compensation.
The Employer will need to notify the Program prior to the one-time match, so that both parties are aware of the timing and amount. The Employer must send a listing or data file of employees receiving an Employer match separate from the regular payroll deferral listing. The Program will return to the Employer any money received for an employee who has separated from service, or who has reached their annual contribution limit. The Employer will need to reprocess these funds through payroll as income to the employee. |
| Employer Match | | Our Account Executives will enroll each participant using the total combined contribution amount from the Employer and employee. For instance, if the employee wants to contribute $50 per paycheck and the Employer has agreed to match up to $25, the employee should declare a $75 contribution to the Ohio Deferred Compensation Program. The Program will then pre-bill the Employer for the full $75.
The Ohio Public Employees Deferred Compensation Program does not give legal or accounting advice. Employers are ultimately responsible for the correct accounting of taxable income and withholdings.
Employers interested in matching employee contributions may contact the service center at 877-644-6457 with further questions. |
| Contribution Billing and Change Reports | | Employers should call Ohio Deferred Compensation at 614-466-7245 with their Employer number and desired payroll date to request a copy. We will verify the fax number we have on file and fax a copy back to the caller. |