Ensuring That Retirees Recover Their Contributions

You need to keep track of an employee's final contributory balances and compare them to their benefits when they retiree. Employees are entitled to full recovery of their contributions. Any posttax contributions are recovered as nontaxable benefits.

The first time you pay a retiree, the system looks up the final employee account balances for the plan in order to track payments against these balances. The system identifies the appropriate employee account using information you enter on the Plan Aliases page.