SECURE 2.0 Act of 2022 makes sweeping changes to retirement savings plans

Throughout this year, ADP TotalSource® has shared information about SECURE 2.0 and the new provisions coming into effect on Jan. 1, 2023. For more information, review ADP’sSECURE Act 2.0 digital huband ADP TotalSource’sInsights and Solutions bulletin on Long-Term Part-Time (LTPT) employees.

ADP TotalSource is contacting you with an update to our Long-Term Part-Time (LTPT) employee identifier located in your payroll system.

Viewing an employee’s LTPT indicator in ADP TotalSource:

After updated, you can view an employee’s LTPT identifier by navigating toPeople>Pay Profile>Tax Withholdings>Federal>Other Codes>Long-Term Part-Time (LTPT) Indicator.

Updating an employee’s LTPT indicator in ADP TotalSource:

Currently, we are working on updating your payroll system to allow you to edit an employee’s LTPT status. To determine an employee’s LTPT status, follow the requirements established by SECURE 1.0 and discuss changes with your retirement services provider. Beginning on or after Jan.1, 2025, follow the requirements established by SECURE 2.0 for LTPT eligibility.

SECURE 1.0 and SECURE 2.0 LTPT eligibility requirements can be found inADP TotalSource’s LTPT Frequently Asked Questions.

For now, to edit an employee’s LTPT status indicator or to update your payroll settings so that LTPT employees are limited from certain provisions of your retirement plan, you must contact your ADP TotalSource payroll contact.

Next steps

• Prepare for the coming changes by discussing your retirement plan’s offerings and provisions with your retirement services provider.
• Review employee hours-of-service to determine if they meet LTPT status.
• If you need to report on LTPT status for your retirement services provider or need to limit LTPT employees from select provisions such as company match, ADP TotalSource’s payroll system allows you to identify LTPT employees using an individual employee indicator.
• To update employee LTPT indicators, contact your ADP TotalSource payroll contact with the following information: ADP TotalSource Company Code, Client ID, Employee File#, and the employee’s LTPT status.

Thank you,