Faculty Payment Options and Summer Insurance Payment Program
Faculty members with a 9-month academic appointment (September through May) and a contract for continued employment the next academic year receive insurance coverage and applicable premium sharing* from the University over the summer months, regardless of whether or not they have a summer appointment. The faculty member, however, is responsible for paying the employee portion of the insurance premiums during the summer months (June, July, and August).
Faculty members should indicate how they will pay for out-of-pocket benefit premiums using the Summer Insurance Payment Options Form. The forms are provided to the faculty members via email at the end of each academic year (April) and at the beginning of each following academic year (usually August) by Benefits Services.
Faculty members who do not make a payment selection will default to the Summer Insurance Payment Program, in which four months of premiums (May – August) will be deducted from their June 1 paycheck.
Frequently Asked Questions
How do I pay my summer insurance premiums?
Faculty may pay summer insurance in one of four ways:
- Spread nine months of salary over twelve months. This assures a monthly salary even if there is no summer appointment. Your insurance payments will be deducted from the salary you receive in the summer. Please note that this option is only available to full-time faculty whose salary is paid from a single account over the 9 month period, and is not paid from a contract or grant account.
- Pay June, July, and August insurance premums from the June 1 paycheck thereby paying May insurance premiums, and pre-paying June, July and August.
- If you receive your paycheck via direct deposit, UT Dallas can enact monthly bank draft as an option to pay for your summer 2012 insurance premiums. To elect this option, indicate your selection on the attached form. Benefits Services will perform the bank draft on June 8, July 10 and August 10. Note that this option prevents the pre-tax advantage provided through payroll deduction.
- The Summer Assignment Option provides for pre-tax deduction of your premium costs on your June, July and August paychecks. If you meet the following two criteria, you are eligible to elect the Summer Assignment Option:
- You will have one or more assignments during the entire summer (June – August).
- Your June, July and August paychecks must net enough to cover your out-of-pocket premium deduction.
How do I elect the 12-month salary payment option?
Faculty summer payment options are provided to you at the beginning of each academic year via the Faculty Salary Payment Options Form from Human Resources Management. You must elect payment options on the form and submit it to the HRM office by the required deadline.
I am partially paid by a grant over the academic year and am not eligible to spread my 9-month salary over 12-months. Why is this?
Grants are considered “soft” money and have varying beginning and ending dates that do not lend themselves to the 12-month payment option. This policy is consistent with other UT component institutions.
I will not have a summer assignment, and I can’t afford to have such a large deduction come out of my June 1st pay. What should I do?
Spread your salary over 12 months or enroll in bank draft.
I am a full-time faculty member on the nine-month salary distribution, but my summer assignment will be for the first summer session only. Can I opt out of quadruple deductions from my June 1 paycheck?
No. Summer I assignment will not provide a paycheck for the month of August, and unless you have a paycheck for the month of August, we cannot collect your premiums.
If I choose to participate in the bank draft option, when will these drafts occur?
If you choose bank draft, the first bank draft will occur on June 8, 2012. Subsequent drafts will occur on July 10, 2012 and August 10, 2012. Note that you will make two premium payments in June: one via deduction on your June 1 paycheck, and one via the June 8 bank draft.
What if I am a full-time faculty member and my summer assignments are for only 50%? Will my premium sharing* be reduced to 50%?
No. If you are a full-time faculty member on May 31, your status for insurance purposes will remain 100% for the entire summer.
I will have a Summer II assignment only. Can I elect to have two months of premiums deducted (May and June) on my June 1 paycheck and have July and August premiums deducted from my summer pay?
No, hybrid options cannot be accommodated at this time.
None of the summer insurance premium options work for me. What should I do?
While you need to choose one of the options given for summer 2012, you may want to shift your pay distribution for 2012-13 to a 12-month salary spread. This will allow you to make 12 equal payments for your out-of-pocket insurance premiums while realizing the pre-tax payroll deduction advantage. Contact Benefits Services at 972-883-2221 for details on changing your pay plan.
I will be appointed to a grant during the summer. Will the premium sharing* be charged to the grant?
If the grant summer assignment is 100%, premium sharing will be charged to the grant funding.
My summer assignment is funded by both a school and a grant cost center. How will premium sharing* be handled?
Funding will be split proportionally among the assignment cost centers.
I am a part-time faculty member, and I receive only 50% premium sharing*. If I have a full-time summer assignment, will I receive 100% premium sharing?
Yes, in the event your status changes from part-time to full-time for the summer, you will be “upgraded” to full-time status for premium sharing purposes. Assuming that you have a 100% assignment for June and July, but only a 50% assignment for August, your premium sharing* will be reduced to 50% for the month of August only.
If I had quadruple deductions from my June 1 paycheck, but my family status changes during the summer, what happens?
If you have a family status change (i.e. new baby) during the summer, contact Benefits Services at 972-883-2221 to update your coverage and to make arrangements to cover any additional costs. If your coverage is reduced, you will receive a refund of any out-of-pocket costs once Benefits Services is notified of these changes and makes the necessary corrections.
I’ve turned in my Summer Insurance Payment Options Form, but I want to make changes to my payment plan. What can I do?
Once you have turned in your Summer Insurance Payment Options Form, summer 2012 summer premium payment elections are irrevocable.
*Premium sharing refers to the University’s contributions to your benefits premiums.
Special Notes
Non-Response: In the case of non-response to the Summer Insurance Option deadline of May 16, 2012, the employee’s selection will default to the Summer Insurance Payment Program. Deductions for May-August out-of-pocket premiums will come from the June 1 paycheck.
Non-Coverage: If an employee waives coverage, or coverage is canceled due to non-payment, the employee must reinstate insurance coverage during Annual Enrollment. Failure to do so will result in no insurance coverage or reduced insurance coverage effective September 1.
Non-Response: In the case of non-response to the Summer Insurance Option deadline of May 16, 2012, the employee’s selection will default to the Summer Insurance Payment Program. Deductions for May-August out-of-pocket premiums will come from the June 1 paycheck.
Non-Coverage: If an employee waives coverage, or coverage is canceled due to non-payment, the employee must reinstate insurance coverage during Annual Enrollment. Failure to do so will result in no insurance coverage or reduced insurance coverage effective September 1.
Last Updated: April 30, 2012
