Friday, March 24, 2006

If you do nothing before April 14


Anon post please:

"If you do nothing before April 14"

1) There are two dates discussed in regards vacation cashout: April 14 and March 31

2) Payroll told me that March 31 is a hard deadline for electing to defer
vacation cash-out to your 457b plan. If you do so after that date,
e.g. between March 31 and April 14, then it will not go through as 457b and it
will get cashed out. Johnson's memo seemed ambiguous (to me): it highlighted
the April 14 date, mentioned the March 31 date, but then referred to
contributions for the months of March and April as if perhaps that's all that
would be lost if you elected to defer cashout to the 457b plan after March 31
but before April 14.
To be clear: I was told that deferral to the 457b needs to be done before March 31, period.

3) It was later clarified by Johnson that if you don't cashout now, but apply
vacation to LANS, that if you later decide not to be a LANS employee then it
will be cashed out for you.

4) Lastly, I was told that the accrual of vacation for the months of April
and May is transferred to LANS as vacation, i.e. you start with whatever
vacation you would accrue in two months, and not with 0 vacation days if you
elect to cashout or defer and not transfer vacation as vacation.

I, too, asked for clarification from LANL HR.

The March 31 date is for setting up the payroll contribution into the 457b. This sets the contribution level for April. After April, you have to set it back: It is a montly value.

If it is not set before 3/31, then the transfer will not occur and the funds will appear in your paycheck , subject to withholding.

So, I opted to move my vacation value in the 457b, allowing me to come close to maxing it out for 2006. I will go into LANS with two months of accrued vacation, unless I use it in April and May.

If one does NOT want to move the funds to the 457b or the the 403b (can't see any reason for that), you have until April 14th to elect cash or transfer to LANS.
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