Important Update on Payroll Schedule Standardization

In support of the University’s goals for continuous improvement in the quality and efficiency of its business processes, a payroll schedule standardization effort is underway for all non-exempt employees. It is planned that any staff member in a non-exempt employment classification who is not already on the bi-weekly payroll schedule will be transitioned to the bi-weekly payroll as of July 1, 2012.

Several process changes and programs have been developed to make this change in pay schedule as seamless and convenient as possible. One of the changes is the timing of the payroll deduction for certain benefit plans. Prior to July 1, 2012, the full monthly cost for the UC Medical Plan, Legal Plan and Flexible Spending Account for Dependent Care and Health Care was deducted all at once from one paycheck each month. By contrast, the monthly cost for almost all other UC benefit plans* are divided evenly with half of the cost being deducted from one bi-weekly paycheck and the other half being deducted from the next bi-weekly paycheck.

Change in Timing of Payroll Deductions

Starting with the paycheck due on July 18, 2012, and for all employees on the bi-weekly pay schedule, the payroll deduction for the plans listed above will be split evenly between the two paychecks received each month. The payroll deduction taken on July 18 will represent one-half of the monthly premium due for August coverage. The remaining one-half due for August coverage will be deducted from the paycheck received on August 1, 2012.

This means the net amount of the two paychecks received each month will be equalized and will likely make monthly budgeting easier by not having a larger deduction for benefits from one paycheck and a smaller deduction for benefits from the next one. Frequently Asked Questions that may be helpful have been posted in Related Information.

Summary

For exclusively represented employees, the Labor Relations offices have notified the respective unions of the changes, which are subject to requirements of the Higher Education Employer-Employee Relations Act (HEERA).

It is the University’s sincere hope that this change provides a more efficient and convenient budgeting environment for employees and their families. If there are questions, employees may contact the person in their department who handles benefits/personnel issues or call Campus Human Resources, Benefit Services at extension 4-0830, or Health System Human Resources at extension 4-0500.

Below is a partial list of benefit plans and other programs that are not affected by this change because the monthly cost is already spread evenly over two bi-weekly checks each month:

  • 403(b), 457(b), DCP After-tax, 403(b) Loans
  • Accidental Death & Dismemberment
  • Auto and Home Insurance – California Casualty
  • BruinCard
  • Credit Union, including Credit Union Loans
  • Dependent Life Insurance
  • Parking
  • Recreation
  • Supplemental Disability
  • Supplemental Life Insurance
  • UCRP and UCRP Buybacks
  • United Way
  • Union Dues
  • Wage Garnishments

 

Campus Human Resources, Benefits Services
Phone: (310) 794-0830 | Fax: (310) 794-0835