Benefit Deduction Procedural Change
Based on a recommendation made by the college’s auditors to better reconcile the benefits we provide to employees with vendor records, effective July 1, 2014, certain benefit deductions will change from 26 pays to 24 pays. This change will enable more timely and accurate budget reconciliations and will provide 2 pays each year (for those two months that contain 3 paydays) without deductions for certain benefits.
The following benefits will be deducted from 24 pays: health, dental, vision, flexible spending accounts, health savings accounts, and optional life insurance. (When you receive your pay advice on August 29, 2014 and January 30, 2015, there will not be a deduction for these benefits since they are the 3rd pay of the month). Your retirement and any other deduction will continue to be deducted from 26 pays. You will see the new deduction on your July 3, 2014 pay advice.
The premiums for health, dental, and vision did not increase this fiscal year. Your benefit deductions will be deducted over a shorter period of time; therefore you will see a small increase in the same premium being deducted from 24 pays instead of spread over 26 pays.
Human Resources and the Payroll Office will begin testing these rates in our system during the month of April and, once we have finalized these processes, new 24 pay rates will be distributed to all employees prior to open enrollment.
If you have questions, please contact Shirley Haymaker, Assistant Director of Human Resources at firstname.lastname@example.org or 7799.