Key Dates & Information

1. Online form enrollment ends 5:00 PM on 8/22/25 (strictly enforced deadline)
2. First paycheck with the reserve deduction taken 9/12/25
3. First paycheck with the distribution returned 6/5/26
4. Percentage deduction from net pay is 26.92%
5. Coverage for 91 summer period days.
6. Deduction is taken from 265 academic period days.
7. Email went out on 7/2/2025, copy below.

Key Points

1. Reserve deduction is only taken on full payroll periods during the academic year.
2. Reserve deduction is a designated flat percentage of net pay.
3. Electing this option will not impact any summer salary you might receive for administrative, teaching, or research work etc.
4. Reserve funds are distributed by taking the deduction balance divided by the days in the summer times the summer days in the payroll period.
5. Reserve distributions will be a separate check from any summer other pay.
6. Reserve distributions will not have deductions or taxes taken.  All involuntary and voluntary deductions and taxes were taken during the original payroll period (during the reserve deduction).
7. Gross pay is not delayed. This process is a deduction that is taken during the academic year and then disbursed (refunded) during the summer periods.
8. All withheld funds will be paid to you if you leave KU during the program period.
9. This process does not impact any of the current interfaces or reporting for KU and State of Kansas systems, as pay is accounted for and distributed when it is earned. This is an employee deduction process only.
10. This does not impact your W-2, employment verification or conditions of employment.
11. Enrollment is required each year, this is not an automatic renewal.

Key Employee Considerations:

1. Offers participants a disbursement during the summer periods.
2. Has no effect on benefits coverage, including medical benefits.
3. Charges no fees to participate.
4. Does not delay retirement contributions.
5. Disburses the reserved funds evenly based on the days in each summer pay period.
6. The reserved funds will not earn interest; however, no fees will be charged.
7. Eligible employees who prepay for summer benefits will notice smaller take home pay in the spring semester pay periods when those prepay deductions are assessed.
8. The reserve is only assessed on after-tax payroll earnings and will not be taken on supplemental payments, such as cash awards and overloads.
9. Participation is only available to faculty members who work the full academic year.
10. Sample Worksheet

2025-2026 Program Email:

Faculty Academic Year Pay Reserve for Summer Disbursement 

Hello,

Enrollment in the Faculty Academic Year Pay Reserve for Summer Disbursement program for the 2025-26 academic year is now available. Eligible faculty members can enroll in the program at HR AY Reserve until 5 p.m. on August 22. If you participated last year and want to participate in this coming academic year, you must sign up again. 

After submitting the enrollment form, you will receive a confirmation email. When the deduction has been entered into HR/Pay in late August, you will receive another confirmation email from the Payroll Office.

About the Program

The Summer Disbursement program reserves a portion of after-tax pay from every full pay period during the academic year and then evenly disburses those funds to the participating faculty member during the summer. The program will affect an individual’s net pay each payroll period, but does not impact their gross pay, retirement contributions, benefits, tax withholdings or W2. The university and participating faculty members will continue the practice of pre-paying summer State Employee Health Plan and optional group life insurance premiums during the spring semester. 

Who is Eligible?

The program is open to all academic year faculty, tenured and tenure-track faculty, unclassified academic staff and lecturers hired for the 2025-2026 academic year.

Program Benefits 

• Participants receive disbursements during the summer period.
• Has no effect on benefits coverage, including medical benefits.
• No fees to participate.
• Does not delay retirement contributions.
• Disburses the reserved funds evenly based on the days in each summer pay period.

Additional Information 

Participants will have 26.92% of after-tax earnings reserved from each full pay period August through May. Those funds will be held by the university and be the source of the participant’s summer disbursement.

• The reserved funds will not earn interest.
• Eligible employees who prepay for summer benefits will notice smaller take home pay in the spring semester pay periods when those prepay deductions are assessed.
• The reserve is only assessed on after-tax payroll earnings and will not be taken on supplemental payments, such as cash awards and overloads.
• Employees with additional pay components, such as a professorship, will have these components included in the reserve amount. If you are unsure whether you have an additional pay component, please check with your budget officer.
• Participation is only available to faculty members who work the full academic year.
• A sample worksheet is located on the HR website.

The 2025-2026 program runs from August 18, 2025, to August 17, 2026. If a participant ends employment with the university before the distribution period has ended or assumes a position with a 12-month appointment, the balance in the reserve fund will be paid to the participant at the earliest opportunity.

Current information is available on the Human Resources website. 

Respectfully,

Angie and Jason

Angie Loving, Vice Chancellor for Human Resources

Jason Hornberger, Vice Provost for Finance

Sent 7/2/2025