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ABP: Reporting and Remitting
Employee Contributions

All contributions taken by the State Centralized Payroll Unit and the autonomous State colleges and universities are forwarded to the designated ABP carriers on a timely basis.  According to federal law, all 403(b) contributions must be credited to the member's account within five business days of the payroll date.

Employers who use the State Centralized Payroll Unit will have employee and employer contributions reported to the ABP carriers by the Division of Pensions and Benefits. 

The autonomous State colleges and universities need to forward all monies to the appropriate ABP carriers, and submit a report to the Division of Pensions and Benefits using the Employer Contributions Report. The Employer Contributions Report provides the salary and membership data necessary to secure the State's 8% employer contribution.

Since January 1995, a participant's regular 5% employee contribution has been treated as federally tax-deferred under Section 414(h) of the federal Internal Revenue Code.  Therefore, the 5% member contribution is excluded from federal income tax under a Tax-Deferred Annuity (TDA) program.  This permits participants to defer a higher maximum under IRC Section 403(b) and further reduce federal income taxes owed.

All investment carriers are required to furnish a statement of account to every participant on a quarterly basis.  The statement must indicate the balance of the account with respect to the value of the contributions credited to the participant's account.

Necessary Forms
	Enrollment Application Salary Reduction Agreement Application for Transfer Form Carrier Election Form Leave of Absence Form Frequently Asked Questions Election of Retirement Coverage Form Retirement Application Designation of Beneficiary Form

 

 

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