Questions and
Answers Regarding Faculty Twelve
Month Pay for Continuing Residential Faculty
What is “Twelve Month Pay”?
“Twelve
Month Pay”
is the payment of your regular annual
salary over twenty-six pay periods and Flex Credits over twenty-four
pay periods
during the fiscal year (July 1 through June 30). Currently, your
regular
salary is paid over twenty pay periods and Flex Credits eighteen pay
periods
during the fiscal year.
When do I elect to sign up for twelve-month pay?
You may elect to have your
regular salary
paid over twelve months during the Benefits Open Enrollment period,
which
occurs every April. All Open Enrollment
changes are effective the following July 1. Faculty
on a one year only (OYO) contract or an Irregular calendar on July 1,
do not
qualify.
If I elect twelve-month pay, when would I
receive my
first paycheck?
You will
receive your first paycheck the first pay in July. If you do not
return
to work when faculty accountability begins in August you must contact
Employee
Relations at 480-731-8752 or 480-731-8473.
Will the amount of the
deductions that
are taken for the benefits that I elect change?
The cost of
most of the employee benefits that you elect will be deducted over the
twenty-four pay periods instead of over eighteen pay periods. This
includes Tax
Shelter Annuities (TSA’s). However, flexible-spending accounts
(FSA’s)
will be deducted over 26 pays.
·
Medical, Dental, Mental
Health, Life, AD&D,
STD, etc. – will be deducted over 24 pays and will automatically change
to 12
month deductions.
·
TSA’s - To maintain your
current annual
contribution level, you must complete a new TSA form and divide the
annual
amount by 24 pays instead of 18 pays.
·
FSA’s – will automatically be
changed and will
be deducted over 26 pays.
What happens to any other
deductions that
I have elected to deduct from my paycheck?
Below is a list of the other
deductions
that you can elect to have deducted from your paycheck. What you must
do
depends on the type of deduction.
Employees/faculty
who are purchasing service credit with ASRS
must
continue to have the same number of deductions and dollar amount of
deductions
taken on a 12-month pay cycle as is currently taken on the 9-month pay
cycle. This means the ASRS service purchase deduction will
continue to be
deducted on the 20 paychecks during the academic year. 6
paychecks will
not have the ASRS service purchase deduction taken. (This means you
will have a
larger paycheck in the summer as well.) Per ASRS, this is a
contractual
agreement between the employee and ASRS, and MCCCD is not allowed to
change the
contract.
If an
employee/faculty elects the 12-month pay option and then begins an ASRS
service
purchase deduction, this amount must be deducted from all 26 paychecks
until
the “ASRS service purchase contract” is paid in full. This means
faculty
who choose the 12 month pay option and begin an ASRS service purchase
deduction
while on 12 month pay must remain on the 12 month pay option until the
ASRS
service purchase deduction has been paid in full or the employee
terminates.
If I elect twelve-month pay will it change the
way I earn
Sick Leave?
No. You
will accrue sick hours at the rates
listed below, which is the same as employees on a 9-month pay cycle.
(Any employee
working less than 1.0 FTE will have their sick leave hours pro-rated.)
Can I go back to having my
salary paid
over the Fiscal year once I elect twelve-month pay?
If you elect to have your
salary paid
over twelve months and later decide to go back to nine month pay, you
will have
to wait until the next Benefits Open Enrollment period and the change
will be
effective on the following July 1. The last paycheck for twelve-month
pay will
pay you through June 30. The next check you receive will be based on
nine-month
pay and will not be paid to you until the first payday after the
beginning of
the new fiscal year.
If I receive additional pay (i.e. special
services
contract, RPS’s) how will that be paid?
Special services contracts
will be paid
based upon the dates listed on the contract or RPS (as it currently
exists).
Will the 9-month Salary Deferral option still
be
available?
Yes, for Faculty on the
9-month pay
cycle, for fiscal year 2006-07. It will be reviewed annually for
participation levels.
What happens if I don’t elect 12-month faculty
pay?
You will continue to
be paid over 9 months. If you have
previously signed up for salary deferral, your pay will remain on
salary
deferral for the Fiscal Year, unless you choose another option.
If I am currently on salary
deferral this
FY and switch to 12-month faculty pay, which begins in July, will I
still get
my large check the previous May?
Yes, you will.
Your final paycheck
will be distributed right after your retirement date, regardless of the
month. Your final pay will be adjusted based upon the number of
days
worked in the fiscal year and will include all pay earned through the
retirement date. In order to calculate your pension, ASRS needs
to know
when the final paycheck has been received.
Example: If
your retirement date is mid-May, your final pay will be received in
late May,
not June 30th.
If I elect 12-month pay, will the calculation
of
probationary or sabbatical time change?
Please see examples listed on the next couple of pages.
If you have any further questions, please send them via e-mail to the payroll account