Summary
The
Twelve Month Payroll
Redistribution Plan provides a method for
academic employees on 9-month appointments to spread their 9-month
gross salary equally over the 12-month plan year (October 1st
through September 30th of the following year). The total amount
deferred will be paid out in accordance with the standard distribution
schedule (July 1/3, August 1/3 and September 1/3). Interest will
not be paid on the deferred amount. Participation in the plan
will be available to academic employees on 9-month appointments
only. Open enrollment for the plan year ends September 10th.
Employees entering the plan for the first time will not receive
pay in September. Checks or direct deposits will be processed
like any other payroll payment. Deductions will be processed
as a 12-month employee.
Enrollment
To
enroll in the plan an employee will sign and date an Authorization
for Twelve Month Payroll Redistribution Plan form. This form
must be returned by September 10th. Enrollment in the plan becomes
effective at the beginning of the plan year (October 1st).
Termination/Withdrawal
Election
to participate in the plan is irrevocable during the plan year.
Payout prior to the standard distribution schedule may be made
only in the event of the employee's termination or death. Under
current federal tax regulations, these restrictions are necessary
in order for the payments to be taxed when received by the employee.
Where
the payroll system is currently so programmed, the plan continues
in effect until the employee terminates the plan. To withdraw
from the plan, the employee will sign and date a Request for
Termination of Payroll Redistribution Plan form. This form must
be returned by September 10th. Termination will be effective
at the end of the plan year (September 30th) and the employee's
salary will revert back to a standard 9-month distribution effective
September 16th. If a participating employee dies, the money accumulated
in the redistribution pay account will be paid to the surviving
spouse or children or to the estate, according to normal payroll
policies and procedures.
