Common use of Lump Sum Leave Cash Out Upon Separation Clause in Contracts

Lump Sum Leave Cash Out Upon Separation. A. Effective October 31, 2002, to the extent permitted by federal and state law, employees who separate from State service who are otherwise eligible to cash out their leave balances, may ask the State to transfer a designated amount from their cash payment into their existing 457(b) and/or 401(k) plan offered through the State’s Savings Plus Program (SPP). B. If an employee does not have an existing 457(b) and/or 401(k) plan account, he/she must enroll in the SPP and become a participant in one or both plans no less than 60 days prior to his/her date of separation. C. Such transfers are subject to and contingent upon all statutes, laws, rules and regulations authorizing such transfers including those governing the amount of annual deferrals. D. Employees electing to make such a transfer shall bear full tax liability, if any, for the leave transferred that exceeds the annual deferral limits (e.g., “over- defers”). E. Implementation, continuation and administration of this section is expressly subject to and contingent upon compliance with the SPP’s governing Plan document (which may at the State’s discretion be amended from time to time), and applicable federal and state laws, rules and regulations.

Lump Sum Leave Cash Out Upon Separation. A. Effective October 31, 2002, to the extent permitted by federal and state law, employees who separate from State service who are otherwise eligible to cash out their leave balances, may ask the State to transfer a designated amount from their cash payment into their existing 457(b) and/or 401(k) plan offered through the State’s Savings Plus Program (SPP). B. If an employee does not have an existing 457(b) and/or 401(k) plan account, he/he/ she must enroll in the SPP and become a participant in one or both plans no less than 60 days prior to his/her date of separation.separation.‌‌ C. Such transfers are subject to and contingent upon all statutes, laws, rules and regulations authorizing such transfers including those governing the amount of annual deferrals. D. Employees electing to make such a transfer shall bear full tax liability, if any, for the leave transferred that exceeds the annual deferral limits (e.g., “over- over-defers”). E. Implementation, continuation and administration of this section is expressly subject to and contingent upon compliance with the SPP’s governing Plan document (which may at the State’s discretion be amended from time to time), and applicable federal and state laws, rules and regulations.