Reserves Program

Updates

  1. 7/15/2021 - Percentage of reserve deduction has been modified to 26.52%. This will level out the net pay across the entire plan period.  The worksheet sample (xls) has been updated.
  2. 7/20/2021 - Open Enrollment has begun.
  3. 8/25/2021 Open Enrollment has closed for this pilot project.

Key Dates

  1. Online form announcement and enrollment form opens 7/20/2021
  2. Online form enrollment ends 8/18/2021
  3. First paycheck with the reserve deduction taken 9/17/2021
  4. First paycheck with the distribution returned 6/10/2022 

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. First pilot year the deduction is 26.52%
  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 not have deductions or taxes taken.  All involuntary and voluntary deductions and taxes were taken during the original payroll period (during the reserve deduction).
  6.  All withheld funds will be paid to you if you leave KU during the program period.
  7. 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.

Open Enrollment Announcement Email

Subject: Faculty Academic Year Pay Reserve for Summer Disbursement Pilot Program Open Enrollment

Faculty Colleagues,

Open enrollment is now available for the academic year payroll reserve for summer pilot program for faculty announced on July 14. The full email from Provost Barbara Bichelmeyer as well as additional information about the program are available on the Human Resource Management website.

The deadline for an individual with a qualifying appointment to complete the open enrollment form is Aug. 18, 2021.

An important update: Based on initial feedback, the academic year reserve percentage was modified to 26.52%, which will even the net pay across the academic and summer periods.

If you have any questions, please contact hrdept@ku.edu.

Sincerely,

Human Resource Management and Payroll Services

Sending 7/20/2021

 

Provost Bichelmeyer Announcement Email

Subject: Pilot Program: Faculty Academic Year Pay Reserve for Summer Disbursement

Faculty Colleagues,

Human Resource Management and Payroll are excited to announce a new pilot program that will be available to faculty in August with the start of the academic year.

For a number of years, representatives in Faculty Senate have advocated for the option to have academic year pay distributed evenly throughout the entire year, including over the summer months. Beginning in mid-July, eligible faculty who are interested will be able to sign up for a pilot program that reserves a portion of after-tax pay from every full pay period during the academic year and then evenly disburses those funds to the faculty member during the summer. The program will affect an individual’s net pay each payroll period, but 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 benefits during the spring semester.

The pilot program is open to all academic year faculty, tenured and tenure-track faculty and lecturers hired for the 2021-22 academic year.

This pilot program:

  • Offers participants a disbursement during the summer periods.
  • Has no effect on benefits coverage, including medical benefits.
  • Charges no fees to participate.
  • Does not delay retirement contributions.
  • Disburses the reserved funds evenly based on the days in each summer pay period.

Participants who have previously been paid over the course of the academic year will notice a considerable percentage *(Revised7/15/21 to 26.52%) of after-tax earnings reserved from each full pay period August through May. Those funds will be held by the university and become the source of the participant’s summer disbursement.

  • The reserved funds will not earn interest; however, no fees will be charged.
  • 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.
  • Participation is only available to faculty members who work the full academic year.

The pilot program runs for a full year, August 18, 2021 to August 17, 2022. 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.

Enrollment in the pilot program will be available from July 19, 2021 to August 18, 2021. Another message with instructions will be sent when the sign-up form is available. Interested faculty members should contact hrdept@ku.edu and monitor the HRM website where more information will be posted.  The worksheet sample (xls) that shows how the pilot program would affect net pay during the academic year and the calculation of the distribution during the summer.

As the pilot year of the program nears its conclusion, I will ask Vice Provosts Chris Brown, Mike Rounds and Jason Hornberger to work together with faculty governance leaders to evaluate participation, implementation and a number of other factors, then make a recommendation to me about whether the program should continue as a payroll option for faculty in future years.

Faculty, thank you so much for your dedication to our students and the scholarly activities that generate so much pride in our university. The input you have provided for this pilot program will help make the campus more supportive of your work. It is my hope that many of you find this program of service to you and your families.

Respectfully,

Barb

Barbara A. Bichelmeyer

Provost & Executive Vice Chancellor

sent 7/14/2021