Washington Administrative Code › Title 415 - Retirement Systems, Department of › Chapter 415-501 - Deferred compensation plan › PARTICIPATION IN THE PLAN › Section 415-501-435 - May I make deferrals that were missed during periods of uniformed service?

Current through Register Vol. 24-14, July 15, 2024
(1)
Does the
				plan have a military make-up provision?
Participants meeting certain
				eligibility requirements are allowed to make up contributions that were missed
				during periods of absence from employment due to uniformed service, based on
				federal laws and regulations of the Uniformed Services Employment and
				Reem-ployment Rights Act of 1994 (USERRA,
				38 U.S.C. Sections
				4301 through
				4335).
(2)
What constitutes uniformed
				service?
For the purposes of this rule, uniformed service includes: The
				Army, Navy, Air Force, Marines, Coast Guard, the commissioned corps of the
				Public Health Service, the reserve components of the foregoing services, the
				National Guard, the National Disaster Medical System, and any other category of
				persons designated as such by the President in a time of war or emergency.
				Service includes active duty, active duty for training, initial active duty for
				training, inactive duty training, examination to determine fitness for duty,
				funeral honors duty, and full-time National Guard duty. Service may be
				voluntary or involuntary.
(3)
What is the time limit for making up missed deferrals?
Makeup
				deferrals must be made within a period not exceeding three times the period of
				uniformed service, but in no case more than five years. This is referred to as
				the statutory period. The period begins the day you return to work. Missed
				deferrals can only be made while you are employed by your original employer. If
				you leave that employer but return to that employer within the statutory
				period, you may continue to make up deferrals until the end of the statutory
				period.
(4)
What is the limit
				on military make-up contributions?
You may contribute up to the maximum
				contributions for each calendar year that included absence from employment for
				uniformed service. In addition, you may contribute up to the maximum for the
				current calendar year.
EXAMPLE:
John is employed from January to June 2008, and defers $5,000
				  into his DCP account during that time. John is on leave for uniformed service
				  from July 2008 through December 2009, one and one-half years. He returns to
				  employment with this original employer in January 2010.
The deferral limits for this period are as follows:
2008
- $15,500;
2009
- $16,500;
2010
-
				  $16,500;
2011
- $16,500;
2012
- $17,000;
2013
- $17,500; and
2014
- $17,500. John's statutory
				  period for make-up contributions is four and one-half years (through June
				  2014).
Upon his return to employment, during 2010:
For
				  2010, John may defer $16,500 out of his regular salary (subject to limitations
				  for includable compensation). During 2010, he may also defer:
* Up to $10,500 allocable to 2008 ($15,500 less $5,000
				  previously deferred); and
* Up to $16,500 allocable to 2009.
He decides to contribute $16,500 for 2010, and $5,000 for
				  2008.
During 2011.
For 2011, John may defer $16,500
				  out of his regular salary. During 2011, he may also defer:
* Up to $5,500 for 2008 ($15,500 less $10,000 total
				  previously deferred).
* Up to $16,500 for 2009.
(5)
How are make-up deferrals
				made?
Make-up deferrals are made through payroll deductions after you
				return to employment. Make-up contributions may be paid using pretax or Roth
				dollars.
(6)
What conditions
				must be met to qualify for this provision?
You must not have been
				released from the uniformed service under dishonorable or other punitive
				conditions, as set forth in 38 U.S.C. Section 4304. In
				addition, you must return to employment with your original employer within the
				time frame specified in USERRA (38 U.S.C. Section 4312) based on
				your length of service.