Benefit Replacement Pay (BRP) Leveling Election Form 3 – CAPPS (Sample)
|DATE:||Dec. ___, 20XX
|SUBJECT:||Benefit Replacement Pay (BRP) Leveling|
Employees who are eligible for BRP must decide whether or not the BRP amount due to them is to be leveled throughout the calendar year. Your election for this year carries over to next year unless you change your election in CAPPS Employee Self Service.
If you choose to change your current BRP election, you must log into your CAPPS Self Service account and make your election by Dec. ___, 20XX. If the new election is made after the deadline, your election from the previous year will continue.
If you decide to level your BRP for the calendar year, your net salary will remain approximately the same throughout the calendar year. You are only entitled to receive BRP compensation for periods worked. If you terminate or go on leave without pay during the year, your BRP may be affected. For example:
|Annual Salary||Termination Date||Year-to-Date
FICA Wages at Termination
|(ERS) Maximum Annual BRP:||$1,026.86 ($85.58 x 11 months + $85.48 x 1 month)|
|BRP – Leveled:||$684.64 ($85.58 x 8 leveled monthly payments)|
|Difference:||$342.22 (amount unpaid)|
If you choose NOT to level, you will receive a higher BRP payment for the first several months of the calendar year. Once you reach $16,500 in FICA wages, BRP will cease for the remainder of the calendar year.
The option to level takes effect at the beginning of each calendar year and may not be changed during the year.