University of Wisconsin–Milwaukee

Leave Payout to Pre-Tax Additional Retirement Savings Programs Instructions
Steps for Employees for Leave Payouts Deferred to Tax Sheltered Annuity (TSA)/Wisconsin Deferred Compensation (WDC)(Allow 4 weeks minimum for TSA and 6 weeks minimum for WDC)

  1. Determine retirement effective date.
  2. Notify supervisor in writing and personnel representative.
  3. Employee should discuss with their supervisor if they will remain on payroll to use any accrued leave balances whereby affecting the final retirement date; or
  4. Review remaining balances for a lump sum payout of vacation/personal holiday/alra.
  5. Review amount anticipated to be paid out of the above balances (coordinate with personnel representative).
  6. If taking a lump sum payout, employees should consult with their financial advisor regarding tax consequences.
  7. If the employee wishes to increase their contribution to a TSA or WDC so that the majority of their leave payout is deferred and does not incur a high tax consequence – verify with the Benefits office maximum reduction amount available and coordinate leave payout with your personnel representative.
  8. For the TSA program, complete an SRA Form & Submit to Human Resources, 125 Eng Hall. Once the SRA is active notify the personnel representative.
  9. For the WDC program, contact WDC directly for reduction step up. (WDC information is found at www.wdc457.org or (877) 457-9327.) Once the WDC is active notify the personnel representative.
Steps for Personnel Representatives for Leave Payouts Deferred to Tax Sheltered Annuity (TSA)/Wisconsin Deferred Compensation (WDC)
  1. Personnel representative will conduct a leave balance forecast to determine how to process leave balance.
  2. After step 9 above, the personnel representative will log into HRS and process the payout of unused hours in the absence management module.
  3. Personnel representative should take into consideration the payroll schedule in consultation with the employee.
Steps for Benefits Specialists for Leave Payouts Deferred to Tax Sheltered Annuity (TSA)/Wisconsin Deferred Compensation (WDC)
  1. For TSA program, enter SRA form into HRS prior to payroll calculation.
  2. For WDC program, verify with Margaret Denton, UW Service Center that WDC reduction has been received and processed timely.