Office of Human Resources - Benefits Design & Management
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2009 Frequently Asked Questions about Pre-Collected Benefits
What happens to pre-collected benefits deductions if faculty and academic professionals on academic pay take consecutive furlough days off?
Six pre-collected benefits deductions will be taken from the March 13-May 22 paychecks to cover the summer months. These deductions are equal to and in addition to the standard health, life and short-term disability insurance deductions.
Any deductions that cannot be withheld due to consecutive furlough days will be placed in arrears and taken from the next one or two paychecks upon return to active pay status.
OTHER APPOINTMENTS AND PAY SCHEDULES
If I have elected a fiscal pay schedule or have a second position that pays me over 12 months,
do I pay pre-collect benefits deductions?
No. If you are on a fiscal pay schedule or have a second position that pays you over 12 months, you will continue to pay
the standard benefits premiums for 26 pay dates.
If I work more than 9 months but less than 12 months a year and have a faculty or academic professional position,
do I pay pre-collected benefits deductions?
Yes. Your standard and pre-collected benefits deductions will continue while you are in pay status. Any overpayment
of benefits deductions will be refunded.
See Non-Standard, Academic Contracts.
If I work less than 12 months a year but do not have a faculty position (e.g., classified staff),
do I pay pre-collected benefits deductions?
No. Your benefits deductions will be suspended while you are not in pay status and then collected
in one or two pay dates when you return to pay status.
See Non-Standard, Non-Academic Contracts.
IMPORTANT: Be sure to budget for the large deductions withheld from your first and—if required—second paycheck in the Fall.
SUMMER PAY AND NEXT YEAR'S PRE-COLLECTED BENEFITS DEDUCTIONS
Why aren’t pre-collected benefits premiums deducted each year between January and May?
Since the pre-collected amounts cover six pay dates in the Summer, ASU decided to take six pre-collected rates
each year – March through May.
If ASU pays me on an academic pay schedule (and I do not have a second, 12-month job),
will ASU take benefits and retirement from my Summer position/pay?
ASU handles benefits deductions and retirement contributions differently:
- ASU DOES NOT withhold benefits deductions from your Summer pay—as long as
your organization handles your Summer job as a short-term, temporary position and
you have not missed paying any previous benefits deductions.
- ASU DOES withhold retirement contributions from Summer pay.
If you are an ASRS participant, ASU also will withhold long-term disability insurance.
If I am hired in March, April, or May, when will my six pre-collected benefits deductions be withheld?
Your standard and pre-collected benefits deductions will begin as soon as your benefits coverage is effective. Any unpaid
pre-collected deductions will be taken in either the Summer or Fall:
- If you have a Summer or grant job, your missed deductions will be taken over the summer;
- If you are not in pay status during the Summer, your missed deductions will be taken out of the first and, if applicable,
second paycheck(s) in the Fall semester; therefore, please budget accordingly.
If I am hired in the Summer, how will my benefits deductions be handled?
- If your Summer position is less than six months, you are not eligible for benefits until your 9-month contract begins in the Fall.
See Hired in Summer (less than 6 months) - If your Summer position is a 12-month contract, you are eligible for benefits and deductions will be taken from 26 pay periods.
See Hired in Summer (12-month contract).
When will my pre-collected benefits deductions begin each year?
Beginning in March, ASU will deduct standard benefits plus six pre-collected benefits deductions, provided you remain
on an academic pay schedule and do not have a second, 12-month position.
Why doesn’t ASU simply equalize the deductions over the nine-month academic year?
The IRS does not allow ASU to collect pre-tax benefits deductions in one tax year for use in another tax year.
The university must deduct pre-collected benefits premiums for the Summer in the same calendar year.
NEW ELECTIONS AND CHANGES IN BENEFITS
If I enroll in benefits during the Fall semester, what will my deductions be?
You will pay standard benefits deductions from August through February. Beginning in March, you will pay standard benefits deductions plus six pre-collected deductions.
How long do I have to enroll in benefits and when do coverage and deductions begin?
You have 31 days to enroll in benefits after the date you become eligible. Coverage begins the first day
of the month after the submission of your completed enrollment form, and ASU deducts premiums in that pay period.
See New Benefits Effective Date and Enrollment Instructions.
| EXAMPLE If ASU hires you March 16 and you enroll before March 31, benefits coverage begins April 1. Standard benefits premiums, plus the first of your six pre-collected benefits premiums, will be deducted beginning with your April 10 paycheck. Deductions: Medical EPO Single $13.85 (standard rate) plus $13.85 (pre-collected rate). Delta Dental $7.38 (standard rate) plus $7.38 (pre-collected rate). |
If ASU hires me March 16 and I enroll April 10, when do benefits coverage/deductions begin?
Your coverage will be effective May 1 and both standard and pre-collected deductions will begin May 8 and end May 22.
You are responsible for the four missed deductions.
See Faculty & Academic Professionals Hired March through May.
IMPORTANT: Be sure to budget for standard deductions in the Summer or if you are not in pay status over the Summer, for large deductions withheld from your first and—if required—second pay check in the Fall semester.
What happens to my standard and pre-collected benefits deductions if I change coverage
in the Spring because of a qualified life event, such as a marriage, divorce or birth?
If you change coverage and Summer premiums adjustments are needed, ASU will take additional deductions from your next paycheck. If you have overpaid for premiums, ASU will reimburse you at the end of the Summer.
What happens to my standard and pre-collected benefits deductions if I have a qualified life event such as a marriage, divorce or birth and I change coverage in the Summer?
Any corrections for retroactive, pre-collected benefits premiums due (premium overpayment or underpayment) will be adjusted in the Fall.
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CHANGES IN FACULTY PAYMENT OPTIONS
How do I change my pay schedule?
Faculty members can change their payment schedule for the next fiscal year (effective July 1)
by completing a Payment Options for Faculty on Academic Year Appointments form
no later than April 30.
Get the PAY OPTIONS FORM: PDF.
If I change from an academic to fiscal pay schedule in July, what happens to my Spring
pre-collect benefits deductions?
ASU will refund this money in the Summer.
If I change from a fiscal to academic pay schedule in July, do I pay pre-collected benefits premiums?
No. However, the missed benefits deductions (in July and August) will be suspended and collected in one or two pay dates when you return to pay status.
IMPORTANT: Be sure to budget for the large deductions withheld from your first and—if required—second paycheck in the Fall.
FACULTY WHO DO NOT RETURN IN THE FALL
If I do not work in the Summer, when do my benefits end?
No matter how you are paid (academic or fiscal pay schedule), your benefits end on the last day of the last pay period of your employment with ASU and you will be offered COBRA rights.
IMPORTANT:
If you are on an academic pay schedule, your Dean has the discretion to:
- terminate your employment and benefits at the end of your contract on May 15 (any overpayment of premiums will be refunded); or
- place your position on Hold with Benefits and terminate employment at the end of the fiscal year, which will be June 28, 2009.
If you are on an fiscal pay schedule, your employment and benefits terminate at the end of the fiscal year, which will be June 28, 2009.
| CONTACT INFO Faculty Services 480.727.9900 (7.9900) for any conversion rights available for life and disability insurances. |
What happens if I notify my department after June 30 that I am not returning in the Fall?
If you do not notify your department before June 30 that you will not return, you might have to reimburse ASU for any overpayment of your compensation (if on fiscal pay schedule) and/or benefits claims paid after coverage terminates. Retroactive separation of employment dates mean retroactive termination of benefits and retirement.
IMPORTANT: OHR will notify health, life and disability vendors and you must reimburse them for claims paid after your benefits end. You can continue medical, dental and vision coverage at full cost (employee plus employer) under The Consolidated Omnibus Budget Reconciliation Act of 1985 (COBRA).
ASU will refund any retirement contributions.
Can I continue benefits coverage longer if I didn’t know before June 30 I was not returning?
You can—but only if your department agrees to extend your separation of employment date and both you and your department pay benefits premiums and make retirement contributions.
If I work in the Summer but do not return in the Fall, when do my benefits end?
For benefit-eligible positions, benefits and retirement terminate at the end of your last pay period. You can continue medical, dental and vision coverage at full cost (employee plus employer) under The Consolidated Omnibus Budget Reconciliation Act of 1985 (COBRA).