Office of Human Resources - Benefits
Frequently Asked Questions about Pre-Collected Benefits
Other Appointments and Pay Schedules
Summer Pay and Next Year’s Pre-Collected Benefits Deductions
New Elections and Changes in Benefits
Changes in Faculty Payment Options
Faculty Who Do Not Return in the Fall
OTHER APPOINTMENTS AND PAY SCHEDULES
I am a faculty member paid by sponsored accounts and will change from fiscal pay to academic pay beginning in July.
How will ASU handle my benefits deductions?
To assist you with this transition, ASU will deduct three equal pre-collected benefits: May 9, May 23 and the first pay in the fall.
Your pre-collected premiums will equal your standard benefits premiums, since you will not be in pay status for three pay dates.
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 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.
IMPORTANT: Be sure to budget for the large deductions withheld from your first and—if required—second pay check in Fall 2008.
SUMMER PAY AND NEXT YEAR'S PRE-COLLECTED BENEFITS DEDUCTIONS
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. - ASU DOES withhold retirement contributions from Summer pay.
If you are an ASRS participant, ASU also will withhold long-term disability insurance.
When will my pre-collected benefits deductions begin for Summer 2009?
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.
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.
If you pay pre-collected benefits premiums for six pay dates, the additional pre-collected rate is the same as the standard benefit rate.
(See the DEDUCTIONS EXAMPLES chart.)
Why does the start date for pre-collected benefits premiums vary by year
(April in 2008 and March for the following years)?
Because of payroll system demands, ASU did not have pre-collected benefits system functionality
available by March 2008.
NEW ELECTIONS AND CHANGES IN BENEFITS
If I enroll in benefits in Fall 2008, what will my deductions be?
You will pay standard benefits deductions from August 2008 through February 2009. In March 2009, you will pay standard benefits deductions plus six pre-collected deductions. (See the DEDUCTIONS EXAMPLES chart.)
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 your eligibility date (i.e., date of hire), and ASU deducts premiums in that pay period.
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If ASU hires me March 17 and I enroll online April 10, when do benefits coverage/deductions begin?
You will be responsible for all deductions retroactive to the April 1 coverage effective date.
If your coverage begins during the pre-collection period, ASU will handle your premiums as follows:
Standard benefits deductions will increase by the amount of the retroactive premiums.
ASU then bases the first pre-collected benefits deduction on remaining pay dates. (See the DEDUCTIONS EXAMPLES chart.)
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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?
All faculty on an academic pay schedule start—and remain—on the same number of pre-collected rates (between two and six paychecks) for the entire year. 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 in the same timeframe.
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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.
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 or Word.
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 July.
If I change from a fiscal to academic pay schedule in July, do I pay pre-collected benefits premiums?
No. For 2008 only, the three 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 pay check in Fall 2008.
In 2009, your pre-collected benefits will begin in March.
FACULTY WHO DO NOT RETURN IN THE FALL
As required by The Provost’s Office, all faculty benefits terminate on the same date, regardless of pay schedule (academic or fiscal).
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 the fiscal year, which will be June 29 in 2008.
NOTE: ASU will reimburse you for any overpayment of pre-collected benefits.
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.
Contact Faculty Services at 480.727.9900 (7.9900) for any conversion rights available for life and disability insurances.
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). Contact Faculty Services at 480.727.9900 (7.9900) for any conversion rights available for life and disability insurance.
Get retirement information.