Faculty Salary Payment Option
Eligible faculty members have the option of choosing a 12-month salary payment plan, commonly called a salary spread, from their nine-month salary appointment. Faculty who choose the 12-month salary election will be paid from September until August of the following year in 12 equal payments.
Faculty members are not eligible for salary spread if any of the following situations apply:
- You are not a full-time employee of The University of Texas at Dallas. If you are unsure of your status for the upcoming academic year, check with your dean’s office.
- The faculty appointment is to a grant account.
- The faculty member’s appointment changes to a grant account after the beginning of the fiscal year. In this case, the salary spread will be canceled and the faculty member will receive payment of any previously reserved earnings.
- A faculty member becomes separated from the University. In this case, the salary spread will be canceled and the faculty member will receive payment of any previously reserved earnings.
Internal Revenue Code Section 409a and deferred compensation regulations stipulate and require a 12-month salary election must be made and completed prior to the school year or work period. Furthermore, the election of either 12-month or nine-month salary election is irrevocable during the school year. Salary Pay Election will remain in effect until a new Salary Payment Option Form is submitted or when pay from an ineligible funding source invalidates the 12-month salary pay election.
If a faculty member elects the salary spread, and later is separated from the University prior to August 31 of the year in which he/she participates, all deferred funds will be paid in a lump sum to the employee or to the employee’s estate.
Faculty members on the nine-month salary spread may be interested in the details of the Summer Insurance Payment Program.
Last Updated: September 13, 2012