Benefits - Summer Prepay Deductions: What Happens Next?
July 11, 2014
Academic (9-month) or Annual (12-month) employees, paid monthly, who have a contract that does not include work for one or more summer months will have additional benefit deductions taken from their earnings during the spring to allow for payment/continued insurance coverage through the summer. Employees must be expected to return for the fall semester or must continue employment in a summer service/summer session appointment to have benefits coverage continue during the summer contract break. These extra deductions are referred to as “Summer Prepay” deductions. Summer Prepay deductions are taken along with the regular monthly insurance deductions on the April 1, May 1 and June 1 paychecks. If you did not have prepayments taken and are returning in the fall, contact your benefits office immediately.
Whether you are working Summer Session or volunteering at your local swimming pool you want to be assured that your benefit coverage still continues. If you had Summer Prepay deductions taken in the spring then in the summer the payroll system draws on the ‘reserve’ or prepaid money that was deducted in the spring months to pay insurance premiums for each month. In the fall, your regular insurance premium deductions resume as payroll deductions starting with the payment received on October 1. You can check these deductions by reviewing your monthly earnings statement in the portal.
Are you getting married? Having a baby? You decided to leave the UW? Regardless of the situation, contact your benefits office as soon as possible so you can be informed about the impacts to your insurance benefits. For example, if you get married on July 12 and need to change from single to family health insurance coverage, contact your benefits office and complete a new health insurance application making the change within 30 days of the date of your marriage. Your new spouse (and family) will be covered as of the date of the marriage. The new rate will be deducted from your prepayments according to the new level of coverage, and you may have to pay an additional portion of the premium if the coverage increases. If you decide to leave your position, your insurance will also terminate meaning that coverage will end the end of the month in which you end employment.
If you have questions, please contact benefits@ohr.wisc.edu.
Source: UW Service Center
Categories: WI Retirement System (WRS)