Lump Sum Payment Options

As previously communicated in a memo dated August 1, 2012, on November 8, 2012, eligible employees will receive lump sum payments in accordance with collective bargaining agreements and the approved Coordinated Compensation Panel recommendations.
 

Employees that want to defer the lump sum payments into their 401k or 457 accounts may do so by increasing their deferral election percentages through ING in advance of that pay date. The attached spreadsheet may be used by employees to assist in estimating the percentage increase in deferral elections that is needed to defer the lump sum payment amount. This is an estimation tool only. An employee’s other pre-tax deductions and garnishment, child support, and wage assignment deductions may impact this calculation.  This may also affect your dues payment to MAGE. 
 

Due to the timing of the exchange of data between ING and the State of Michigan payroll system, employees must make any desired deferral election changes after October 11, 2012, and by or before 4:00 PM, October 25, 2012, in order to affect the lump sum payment. If an employee modifies their deferral election(s) before October 12, 2012 the changes may impact the October 25, 2012, pay date as well as the November 8, 2012, pay date. If an employee has not modified their deferral election by 4:00 PM, October 25, 2012, the change will not be reflected in the payroll system in time to affect November 8, 2012 pay date which includes the lump sum payment amount.

Employees wanting to revert to their original contribution levels after the lump sum payment should make the necessary election changes through ING after October 25, 2012, and by or before 4:00 PM, November 8, 2012.
 

Click here to see the spreadsheet with calculations.