This PML is superseded by the HR Manual and is no longer active.
PML Number
2008-045
Title
Transfer Leave Credits
Date Issued
December 8, 2008
Owner
Savings Plus Program
Contact
Lupe C. Vela
Staff Personnel Program Analyst
(916) 323-2701
lupevela@dpa.ca.gov
Signed By
Michelle Berklacich, Administrator, Savings Plus Program
Content
PML 2008-030 notified you that due to a change in the Internal Revenue Code (IRC Section 415) employees who separated prior to November 1, 2008 are not able to defer their unused qualifying accrued leave (i.e. vacation, annual leave, holiday leave, or other time which the employee was entitled compensation) to Savings Plus in 2009. 
Therefore, due to the change to IRC Section 415, employees that separated from January 1 – October 31 and submitted a request to transfer their leave credits into Savings Plus in 2009 will now receive a cash payment for these leave credits. The cash payment will be issued in January of 2009. Please process the payments as soon as possible in January. 
As indicated in PML 2008-030, DPA was awaiting a decision to address employee requests to defer lump sum separation cash payments to the next tax year. SCO has determined there will be no change to the current practice. 
The following sample letter will assist you in disseminating information to your employees for the cash payment of leave credits ineligible for deferment into Savings Plus.

SAMPLE LETTER TO EMPLOYEE
REGARDING LUMP SUM
PRINT ON DEPARTMENT LETTERHEAD
The following sample letter will assist departments in disseminating information to employees for the payment of lump sum that was to be deferred into a Savings Plus account. 
(Date) 

(Employee’s Name) 
(Address) 
(City, State, Zip Code) 
Dear (Name): 
Re: Request to Transfer Lump Sum 
As a result of a change in the Internal Revenue Code (IRC Section 415), your election to transfer your unused qualifying accrued leave (i.e. vacation, annual leave, holiday leave, or other time which you were entitled compensation) to your Savings Plus account to the 2009 calendar year is no longer an available option. Accordingly, you will be issued a cash payment for the corresponding amount in January 2009. 
If you have questions regarding this, please contact (Name, Title) at (Telephone Number). 
Sincerely, 

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