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Content Type: ASC_Announcements
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Date11/12/2013
AnnouncementAct 452 Auto Enroll in Arkansas Diamond 457 Deferred Compensation Plan
Description

Act 452 of the 89th General Assembly, 2013 Regular Session, mandates that all full-time state employees beginning employment or re-employment on or after January 1, 2014 shall be enrolled in the Arkansas Diamond 457 Deferred Compensation Plan (The Plan).  The three percent (3%) contribution amount will be calculated based on the employee’s /102 401 (k) wages.  This contribution amount will be deducted every pay period as long as the employee has enough earnings to cover their deductions.  An employee is considered full-time if the employee’s IT0008 Basic Pay capacity utilization level is equal to 100.00 percent.

The employee may opt out of the Plan by completing the Opt Out form provided in the hiring packet and returning the form to their HR personnel. The HR personnel entering transaction code PA40 hire, rehire or re-employment of retiree action or PA42 Fast Entry for hire or rehire in the system will enter the date type Z8 (Opt out AR Diamond) with the date of hire or re-employment on IT0041 Date Specifications.

If the employee does not complete the Opt Out form, the employee will automatically be enrolled in the Arkansas Diamond 457 Deferred Compensation Plan.  The system will create an IT0169 Savings Plan record for the 457 Diamond Pre-Tax 3% deduction upon saving the employee’s basic pay record through the hire, rehire or re-employment of retiree action.

Exception: Any employee who is hired or rehired with action reason ‘Re-instatement’ will not be auto enrolled.

For further instructions, refer to the Act 452 Auto Enroll in Arkansas Diamond document at: http://rwdprd.dfa.arkansas.gov/gm/folder-1.11.12636?originalContext=1.11.2398