Paying Off or Paying Down an Existing TDP Agreement

Paying Down or Paying Off an Existing TDP Agreement

An employee can choose to pay off the balance of their TDP agreement if they plan to leave state employment or add a payroll deduction to an existing TDP agreement (essentially increasing the deduction).

TDP Payment Increases

An employee can add a payroll deduction to an existing TDP agreement (essentially increasing the deduction). Once increased, the new deduction amount is permanent and binding. In order for the increased deduction to be accepted, a new Supplemental TDP Agreement form must be on file with ORS authorizing the deduction.

• Supplemental TDP agreements. The Supplemental Tax-Deferred Payment (TDP) Agreement (R0654G), available on the ORS State Employee Retirement System website, allows members to add a payroll deduction on an existing TDP agreement (essentially increasing the deduction). Once the form is approved and signed the increased deduction is permanent.
• Entering supplemental TDP agreements in HRMN. Change the current deduction amount for the invoice/agreement number to the new revised total payroll deduction shown on the supplemental agreement form. You will enter this revised amount in the deduction field on the PR14.1 HRMN screen. The original agreement number remains the same.
• ORS needs a copy of the Supplemental TDP Agreement form. ORS must have authorization on file that matches the increased amount. If the form is not on file, ORS can't accept the payment, and you will be required to refund it to the employee. Send a copy of the form as soon as you initiate a supplemental TDP agreement. Note: This also applies to original Tax-Deferred Payment (TDP) Agreement (R0498G).

Lump Sum Payments for Retiring or Terminating Employees

Lump sum payments are only permitted if a member is within 90 days of retiring or terminating. Mid-career lump sum payments are not permitted.

Employees who are terminating or retiring before their TDP Agreement is paid in full may qualify for partial credit or other payoff options. They can also make a direct payment, transfer funds from a qualified retirement plan, or lump sum payment using their final lump sum payouts.

Terminating or retiring employees must use the Payoff Payment Options for a TDP Agreement (R0518G) form to request a lump sum payment on their TDP balance. This form is available on the ORS State Employee Retirement System website.

TDP Agreement Payoff Worksheet (R0718G) – This form can be used to help employees determine the amount needed to pay off their TDP agreement. This form is also available on the ORS State Employee Retirement System website.