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Prepaid Summer Benefits for Eligible Faculty and Staff

KU provides prepaid summer benefit coverage to benefits-eligible faculty that are on contract pay and staff who are on less than 12 month appointments. If you qualify, you will prepay your summer health insurance and optional group life insurance premiums during the designated spring semester payroll periods. If you will not be returning to KU in the subsequent fall semester, the prepaid summer deductions will be refunded.


You are eligible for prepaid summer benefit coverage if you are an academic year faculty member who holds a full academic year or a spring semester regular appointment, and have a commitment for the upcoming fall semester. You are also eligible if you are a salaried staff member who is benefits-eligible and has an appointment less than 12 months. Departments can recommend staff positions that are less than 12 months and those positions must be approved by Human Resources (HR). To be eligible for prepaid summer benefit coverage, the department or Shared Service Center must process the appropriate transaction so that it is received and keyed by HR Appointments by the last work day in January.

Additional Information for Personnel Related Staff or Shared Service Center Staff

HR/Pay System Method

Contract pay is a method of paying individuals appointed to salaried, regular positions:

  1. For a specified time period and specified amount.
  2. Allows the summer employer deduction for benefits and facilitates the prepaid employee deductions during the spring.
  3. Keeps the employee in an active status but not paid during the summer unless a summer appointment is processed.
  4. Allows the processing/charging of employer costs for health benefits and optional group life during the summer.

Contract pay will be used for academic year faculty (including lecturers) and approved salaried staff whose appointments are less than 12 months because of the academic year cycle for whom there is an ongoing commitment.

For appointment processing purposes, contract pay is identified by “pay groups” LCT for academic year faculty and LTX for approved salaried staff and is designated by the compensation frequency C (contract pay). During the contract period, the employee’s compensation rate is the total to be paid for the contract period. For many faculty this will be his/her academic year rate.

When the contract period is over and the contract payment has been completed, the employee will no longer be paid but no action needs to be taken to end the contract unless the employee is terminating employment. If the employee is to receive summer pay, the pay group remains unchanged but the compensation frequency is changed to B (biweekly) along with the compensation rate to reflect the biweekly rate. Upon completion of the summer appointment, the job row is returned back to C compensation frequency and the contract compensation rate. There will be a renewal process run to update contracts as part of the annual budgetary load process.

Generally for academic year appointments the compensation rate is a same for the entire contract period.  If the compensation rate or standard  hours/FTE is not the same for both semesters, the employee should be paid on a biweekly basis  on the “LFC” pay group for the fall and contract  “LCT” pay group for the spring.

Contract pay will not be used for one semester only appointments without the ongoing commitment, even if they reoccur the same semester each academic year; there must be the ongoing spring to fall appointment relationship. Contract pay will never be used for fall or summer only appointments.

Prepaid Benefits

Faculty and staff will prepay their summer benefit premiums during the designated spring semester payroll periods if they are appointed on a contract pay basis. The employee funding source as identified in the HR/Pay system will deduct the employer fringes for health insurance during the summer period corresponding to the benefit coverage dates.

If an individual employee is removed from contract pay before the end of the contract period, the advance prepaid deductions will be refunded.

Individuals who are not eligible for prepaid deductions/contract pay will have benefit deductions taken during the semester(s) in which they have an active appointment and during any summer pay periods in which they have active appointments.

Start Dates

An employee who begins working after the start of the semester can still be paid by contract pay, as long as the start and end dates of his/her appointment are within the contract pay time periods, and his/her appointment meets the eligibility criteria described above. The contract pay appointment information must be received and keyed by HR Appointments by the last work day in January.

Commitment Chart
Position Fall Current Year Spring Current Year Summer Fall Next Year Contact Group Eligibility
Regular   Yes (Current Fall, Spring and Upcoming Fall)
Yes (Spring and Upcoming Fall)
Yes (Spring and Upcoming Fall)
No (No Upcoming Fall)
No (No Upcoming Fall)
Regular     No (No Current Spring or Upcoming Fall)
Regular     No (No Current Spring)
Regular     No (No Current Spring)


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