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Procedures Manual

14.4: Voluntary Deductions from Retiree Benefits Payroll

Last Revised: Mar 1, 2008


Purpose

The purpose of the Voluntary Deductions from Retiree Benefits Payroll is to establish a way in which retirees can have payroll deductions made for insurance policies and/or payments to credit unions and banks. This section is not applicable for the health and life insurance deductions already established under Index 14.0.
Sections

Action to be Taken

Requirements for Company Participation

Disclaimer

Transmittal for Withheld Amounts

Termination of Payroll Deduction
Related Forms

Company Application Retiree Payroll Deduction Program (Form 14A)
 

Action to be Taken

  1. The Company Application Retiree Payroll Deduction Program (Form 14A) must be completed by the insurance carrier, bank, or credit union that provides the coverage, product, service, or depositor of monies and shall be signed by two officers of the company, bank, or credit union. The completed application must be submitted to TRSL for approval prior to any deductions being withheld from the retiree’s monthly benefit.

Requirements for Company Participation:

Each company must meet the requirements listed below to be eligible to participate.
  1. Domestic companies shall:
    • Have been licensed to do business in the state of Louisiana for not less than five years;
       
    • Have a current rating in A.M. Best of B or better;
       
    • Have been doing business under the same name for not less than three years;
       
    • Offer a like product, service, or coverage to citizens of Louisiana;
       
    • Be in compliance with all procedural, accounting, and reporting requirements governing employee deductions.
       
  2. Foreign companies shall:
    • Have been licensed to do business in the state of Louisiana for not less than five years;
       
    • Have a current rating in A.M. Best of B+ or better;
       
    • Have been doing business under the same name for not less than three years;
       
    • Offer a like product, service, or coverage to citizens of Louisiana;
       
    • Be in compliance with all procedural, accounting, and reporting requirements governing employee deductions.
       
  3. Companies/credit unions/banks must be regulated by the Department of Insurance or the Office of Financial Institutions.
     
  4. Companies/credit unions/banks are responsible for submitting a file via disk or FTP for monthly deductions to TRSL by the 12th day of the month preceding the month for which the deduction will be made using the format and specifications established by TRSL. Disk or FTP files received after the 12th day will not be processed.

    All deductions for a single vendor shall be submitted on one monthly disk or FTP file, and the retiree will be allowed only one monthly deduction per vendor. This deduction may cover more than one product for a single vendor. Only deductions received on computer disk/FTP will be processed.
     
  5. Companies/credit unions/banks shall be responsible for obtaining and maintaining appropriate deduction authorization from individual retirees. Copies shall be made available to TRSL upon request.
     
  6. Companies/credit unions/banks are responsible for contract/loan terms between companies/credit union and retirees. TRSL assumes no responsibility for the contract or terms of agreement.
     
  7. Retirees may discontinue any voluntary payroll deduction from their monthly benefit by providing written notification to the vendor.
     
  8. A retiree cannot authorize total deductions which would cause the net amount of the benefit to fall below $5.
     
  9. Companies/credit unions/banks must have a minimum of 50 TRSL retirees to participate in the program. However, companies will be allowed six months after initial approval to meet the minimum participation requirements.
     
  10. TRSL will not deduct monthly premium amounts for any retiree who owes monies to TRSL or has their benefit suspended.
     
  11. Companies/credit unions/banks shall notify TRSL immediately upon learning of the death of a retiree. In the event TRSL has remitted funds to the company/credit union/bank after the death of a retiree and these funds were not due the retiree, the company/credit union/bank shall refund said monies to TRSL after notification.
     
  12. Upon learning of the death of a retiree, even if not notified by the company/credit union/bank, TRSL shall be refunded any monies transmitted but not due. The company/credit union/bank will accept the certification of TRSL as to date of death of retiree as sufficient evidence of date of death in regard to any funds owed to TRSL.
Disclaimer

The company/credit union/bank is prohibited from stating that any product offered has been endorsed or approved by TRSL.

Transmittal for Withheld Amounts
  1. Amounts will normally be transmitted to company/credit union/bank by wire transfer by the 10th of each month. If the 10th is a weekend, the first working day after the 10th will be the date of transmittal. In the event of computer/technical production problems beyond the control of TRSL, it is possible that transmittal of funds would not be made on the 10th day of the month.
     
  2. TRSL will provide the company/credit union/bank a statement of the names of individuals, Social Security numbers, and the amounts withheld.

    Alternatively, TRSL offers registered vendors the ability to retrieve insurance reports online and process updates to deduction amounts. The vendor must first be registered to access the TRSL database, and the staff member who actually enters the insurance update must be specifically authorized to perform this function. The authorization can be granted, if so designated, on Electronic Reporting Registration - Vendor (Form 18A). Also, see Index 18.2 for electronic reporting instructions.
     
  3. TRSL may adjust amounts owed TRSL due to death of an individual. These individuals will be identified by name and Social Security number.
Termination of Payroll Deduction
  1. TRSL may terminate the voluntary payroll deduction program by providing the company/credit union/bank with at least 30 days written notice.
     
  2. Immediately upon notice from TRSL, any individual company/credit union/bank may be terminated for unethical conduct or practices.

Related Forms

Company Application Retiree Payroll Deduction Program (Form 14A)

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