Deferring Annual Leave Payment
Frequently Asked Questions
Summary: Texa$aver 401(k) and TDA (457) participants are able to defer unused annual leave payments to their TDA or Texa$saver account upon termination.
The maximum annual limit for 2007 deferrals is $15,500 for those employees under age 50 and $20,500 for those employees over the age of 50.
Can I be paid for my unused annual leave once I terminate or retire from employment with the State?
You may be paid for your unused annual leave. The lump sum received is considered taxable income, unless you chose to defer a portion of it to a Texa$aver or TDA Plan account.
Can I defer my unused annual leave amount to an IRA or other non-Texa$aver account?
You can only defer to Texa$aver or TDA account.
Can I get paid for my unused sick leave and can that payment be deferred to a Texa$aver Plan account?
Unused sick leave balances are not paid to an employee when they separate from service either by termination on retirement.
What is the process for deferring my unused annual leave payment to a Texa$aver Plan account?
To defer your unused annual leave payment, you will need to communicate this option to the HR Representative as part of your exit process.
Can I defer part of my unused annual leave payment to a Texa$aver or TDA plan account and received the remainder as a lump sum payment?
You can defer part of your unused annual leave payment and receive a check for the remainder, which will be taxable. Maximum annual deferral limits apply.
Can I defer 100 % of my annual leave payment to Texa$aver?
You can defer 100 %, but Social Security and Medicare taxes will be deducted. Maximum annual deferral limits apply.
If I have both a Texa$aver and TDA account, can I defer part of my unused annual leave to each account?
If you have both plans, you can defer all or part of your unused annual leave lump sum payment to either or both accounts.
If I defer my annual leave to my Texa$aver plan account, how long will it take for the funds to be deposited into my Texa$aver or TDA account?
The deferral can take up to 75 days from your termination date to post to your Texa$aver Plan account.
If I currently do not have a Texa$aver or TDA Plan account can I open one so that I may defer my lump sum payment of my unused annual leave?
Yes, however, you must enroll in a Texa$aver Plan or TDA account prior to your separation from service to defer your annual leave lump sum payment. You can enroll over the phone through the automated on-line or by mail.
Texa$aver Information Line 1-800-634-5091.
- Choose option 3; representatives are available Monday-Friday. 8:00am-7:00 pmCST (no PIN needed)
- Automated line available 24/7 (must have a PIN to enroll)
To enroll by mail complete the Enrollment Form located in the form section of the Texa$aver website at www.texasaver.com and mail it to
Attn: State of Texas
P.O. Box 55223
Boston, MA 02205-5223
www.texasaver.com (must have PIN to enroll)
To enroll, contact CitiStreet, who administers Texa$aver up to or on your last day on the payroll.
How do I obtain a PIN?
To obtain a PIN, or if your PIN has been misplaced. Go to www.texasaver.com or cal (800) 634-5091. Your PIN will then be mailed to you at the address on file with your employer.
If you have any questions please contact the HR Representative at 593-3705.
This page was last updated on: June 09, 2011