The University of Oregon offers two options for 9-month faculty and officers of administration to set aside salary for the summer months.
Bank Savings Option, offered by the Payroll Office, in which a fixed amount or percentage of net pay is direct deposited to a savings account.
according to the plan guidelines. No, employees must wait till next plan year during the fall enrollment period. Yes, this occurs only in the first year of enrollment.
Employees may direct deposit a fixed amount or a percentage of net pay to a bank or credit union each month. If your goal is to have available funds in the summer months equal to your academic year monthly pay, we recommend that you select 25% of net pay, rather than a fixed amount.
To enroll in the plan, an employee will complete a new Direct Deposit Authorization Form. Telephone Jay Butler at 346-1126 or Chad Hartvigsen at 346-1106 in the Payroll Office. They will assist you with the Direct Deposit Authorization Form since percentage deductions require special notation on the form.
Deadline:By the 15th of the month.
Note:This is the only plan in which your deferral earns interest. It is also the most flexible plan in the choices available: since you may change the deferral amount or stop and resume the plan at any time.
The Twelve Month Option Plan provides a method for faculty and officers of administration on 9-month appointments to spread their academic year salary over 12 months, October 1 to September 30 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. Participation in the plan is available only to employees on 9-month appointments. Checks or direct deposits will be processed like any other payroll payment. Deductions will be process over twelve months.
Note: Employees entering the plan for the first time will not receive pay in September. Interest will not be paid on the deferred amount.
This plan is an IRS qualified plan. The deferral funds are not taxed until the summer months. The deferred amount will be included on tax statements during the year it is paid, not in the tax year it is earned.
To enroll in the plan, an employee will complete an Authorization for the Twelve Month Pay Option Plan form. This form must be submitted to the Payroll Office by September 15th. Enrollment in the plan becomes effective at the beginning of the plan year, October 1st. Telephone Chad Hartvigsen at 346-1106 in the Payroll Office if you have any questions about the plan or need assistance. Also, Chad can provide projections for you of the change to your net pay when you choose this plan.
Election to participate in the plan is irrevocable during the plan year. Pay out 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. Once enrolled, the plan continues in effect until the employee withdraws from the plan at the end of the plan year or resigns from the university. 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.
When employees retire or resign their positions, the deferral process ends and all monies that have been set aside for pay out during the summer months are paid in full. Formal withdrawal from the program is not necessary.
However, for continuing employees a written request to withdraw from the program is required. These employees should complete a Request for Termination of Twelve Month Pay Option Plan form. This form must be returned to the Payroll Office by September 15th. Termination will be effective at the end of the plan year on September 30th and the employee's salary will revert back to a standard 9-month distribution effective September 16th.
Faculty with part-time appointments: It may not always be possible for faculty with part-time appointments to have their appointments included in the deferred pay program. To qualify, the primary appointment must be for the full academic year; additional part-time appointments of one or two quarter duration will not be included in the deferral process.
The Twelve Month Option Plan provides a method for faculty and officers of administration on 9-month appointments to spread their academic year salary over 12 months, September1 to August 31 of the following year. The total amount deferred will be paid out in accordance with the standard distribution schedule: June 1/3, July 1/3, and August 1/3. Participation in the plan is available only to employees on 9-month appointments. Checks or direct deposits will be processed like any other payroll payment. Deductions will be process over twelve months.
Note: Employees entering the plan for the first time will not receive pay in August. Interest will not be paid on the deferred amount.
To enroll in the plan an employee will complete an Authorization for the Twelve Month Pay Option Plan form. This form must be submitted to the Payroll Office by August 15th. Enrollment in the plan becomes effective at the beginning of the plan year, September 1st. Telephone Chad Hartvigsen at 346-1106 in the Payroll Office if you have any questions about the plan or need assistance. Also, Chad can provide projections for you of the change to your net pay when you choose this plan.
However, for continuing employees a written request to withdraw from the program is required. These employees should complete a Request for Termination of Twelve Month Pay Option Plan form. This form must be returned to the Payroll Office by August 15th. Termination will be effective at the end of the plan year on August 31st and the employee's salary will revert back to a standard 9-month distribution effective August 16th.