Employees who are paid over the nine month academic year have different arrangements for benefit premium deductions. Extra (pre-collected) deductions are taken out of each Spring semester paycheck to pay for voluntary benefits coverage (medical, dental, vision, and supplemental life insurance) through the summer months when there is no paycheck. The University applies this pre-collected money to the employee portion of the benefit premiums that are due during the summertime, in order to maintain coverage.
Insurance premiums for academic employees paid over nine months
If an employee changes coverage during the academic year, the premium deduction amounts could change also. Changes in premium will be effective the same pay period as the coverage change.
If an employee begins employment after the start of the Spring semester, a one-time special premium adjustment will be processed in the first paycheck so the remaining pre-collected premium deductions will align with the University’s published deduction schedule.
Deductions are taken for retirement plan contributions (if applicable) from all compensation, including compensation received for supplemental compensation and/or summer contracts.
Voluntary deductions for the Voluntary 403(b) Plan, Flexible Spending Accounts, and home and auto insurance are not taken from any compensation outside the nine-month academic year.
If an employee changes coverage during the summer, the premium deduction amounts could change also. Depending on the type of change, the employee may have overpaid or underpaid for summer coverage. A one-time special premium adjustment will be processed in the first paycheck of the next academic year to bring the employee’s account current.
If an employee terminates employment, any remaining pre-collected premium is automatically refunded to the employee. Continuation coverage may be offered under the Consolidated Omnibus Reconciliation Act of 1086 (COBRA).
