Total Rewards Statement Frequently Asked Questions
Calculating Deductions
- How many pay periods are there in a year?
- How is the 'FICA OASDI' amount on the Total Rewards Statement calculated?
- Are there limits to 'FICA OASDI' deductions? Are there limits to my primary retirement plan contributions?
- Why did my Aetna Life Insurance premium change in the middle of the plan year?
- I don't remember enrolling in a long-term disability plan. Why are deductions taken for it?
- The deduction amounts for my tax sheltered annuity plan (403(b)) or my deferred compensation (457) plan are less than expected. Why?
Changes to Current Benefit Elections
- I just got married and changed the coverage level for my medical and dental plan. It became effective the first of this month. Why isn't the change reflected on my Total Rewards Statement?
- How can I change my voluntary benefit plan elections?
Resources for Additional Information on University Benefits
Calculating Deductions
1. How many pay periods are there in a year?
The number of annual pay periods is based on the number of work days in the fiscal year. For fiscal year 2004-2005, there are 26.1 pay periods, which are used for deductions for FICA, retirement plan contributions, long term disability, and federal and state income taxes.
Only 24 pay periods are used for deductions for all voluntary benefits, which include the medical, dental, vision, short term disability, and supplemental life insurance plans; the tax sheltered annuity plan (403(b)); the deferred compensation plan (457); and the flexible spending accounts.
For more information about the number of pay periods in a fiscal year, visit the Human Resources web site at: http://www.hr.arizona.edu/04_cb/comp/fyhours.php.
2. How is the 'FICA OASDI' amount on the Total Rewards Statement calculated?
For fiscal year 2004-2005, multiply the 'FICA OASDI' pay period deduction amount by 26.1.
3. Are there limits to 'FICA OASDI' deductions? Are there limits to my primary retirement plan contributions?
Annual 'FICA OASDI' and primary retirement plan contribution maximums are regulated by federal law. The table below provides a brief overview of the current maximums.
| Plan |
Annual Maximum |
Based On |
| FICA OASDI |
$5,580 contributions |
Calendar Year |
Primary Retirement Plan
(for employees hired after July 1, 1996) |
the lesser of $205,000 compensation; OR contributions of $14,350 for ORP,
OR $10,600 for ASRS |
Plan Year 7/01/04 to 6/30/05 |
Primary Retirement Plan
(for employees hired prior to July 1, 1996)
|
the lesser of $305,000 compensation; OR contributions of $20,500 for ORP,
OR $15,860 for ASRS |
Plan Year 7/01/04 to 6/30/05 |
Long Term Disability
(for ORP participants, federal employees, clinical assistants, and PSPRS participants) |
$15,000 compensation |
Month |
Long Term Disability
(for ASRS participants) |
all compensation |
n/a |
4. Why did my Aetna Life Insurance premium change in the middle of the plan year?
Aetna Life Insurance premiums automatically adjust when you have a change in compensation or when you have a birthday that places you in a different premium class. The Aetna premiums are detailed at http://www.hr.arizona.edu/04_cb/benefits/ov/life/AetnaSummBenefits.pdf.
5. I don't remember enrolling in a long-term disability plan. Why are deductions taken for it?
All employees participating in a primary state retirement plan are also required by Arizona statute to participate in a long-term disability plan. Your coverage and premium are determined by your retirement plan.
6. The deduction amounts for my tax sheltered annuity plan (403(b)) or my deferred compensation (457) plan are less than expected. Why?
The contribution maximums for these two plans are regulated by federal law and typically change annually. The table below provides a brief overview of the current maximums.
| 403(b) or 457 plan age |
Maximum Calendar Year Annual Contribution |
| <age 50 | $14,000** |
| >age 50 | $18,000** |
**Maximum contributions are higher for employees who qualify for special make-up contributions.
Changes to Current Benefit Elections
7. I just got married and changed the coverage level for my medical and dental plan. It became effective the first of this month. Why isn't the change reflected on my Total Rewards Statement?
The information displayed on the Total Rewards Statement is based on information in the payroll system as of the last day of the most recent pay period. Your changes may not be reflected yet. If the changes are not reflected after the next payroll processing period, contact Human Resources at 520-621-3662 or via email.
8. How can I change my voluntary benefit plan elections?
Your participation in some benefit plans may be changed only during the annual open enrollment period (usually August/September) OR if you have a qualifying life event change. These plans include the medical, dental, vision and flexible spending accounts.
Your participation in some benefit plans may be changed at anytime, such as the tax sheltered annuity plan (403(b)), deferred compensation (457) plan. For more information about making changes, please refer to information on the Human Resources web site at: www.hr.arizona.edu, "Benefits".
Resources for additional information on University benefits
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