If you were promoted to a management position in 2016, you are not eligible to defer your CPS award. Your CPS award will be paid to you in your regular paycheck/direct deposit on March 10. Your award will be treated as eligible compensation for regular savings plan contributions.
Additionally, the CPS award is not eligible for deferral into the savings plan when paid after you leave active service with Verizon. Therefore, if you elect to defer the award into the savings plan but leave the company for any reason before it is paid the award will not be deferred and will not be subject to regular savings plan deductions.
Example of CPS Deferral
Your decision on whether or not to defer your CPS award will affect your 2016 taxable income. Your deferral of the CPS award will be on a before-tax basis, and certain taxes (federal, state and local) on the amount deferred will not be due until you withdraw it from the plan. Please see the example below. Taxes and union dues applied in the example below are provided for illustrative purposes only and do not represent any one individual or union. You may wish to consult with a tax adviser before making your decision.
|Regular Check||Regular Check w/ CPS Included|
|Net Deferred Amount||$700.00*|
'Note: Federal, state, and local income taxes will not change as a result of the CPS earnings and deferral amounts, except in Pennsylvania where only Federal will not change. Your CPS award will not be used to pay deductions and taxes. Deductions, RCA and PA and local taxes, where applicable, will be deducted from your regular wages.
If you choose not to defer your award, you will receive your CPS award payment on March 10 in your regular paycheck with regular savings plan deductions and taxes withheld, as applicable, The award will also be subject to union dues, if applicable, and to all legally required deductions such as wage garnishments. Your savings plan deductions will be Invested based on your investment election on record for current contributions. Employees with direct deposit of net pay for regular paychecks will have the CPS award paid via direct deposit to the same financial institution and bank account.
If you have questions regarding the deferral of your CPS award to the Savings Plan you can call the Verizon Savings Plan Service Center at 888-457-9333. For general questions about CPS, contact your supervisor.