Classification and Pay

Classification

 

Pay

Faculty Deferred Pay Plan

The Faculty Deferred Pay Plan provides a method for academic employees on 9-month
appointments to spread their gross salary over a 12-month plan year from August 1st through July 31st

Benefit deductions for mandatory retirement will be taken from the 10 academic year
checks.  However, benefit deductions for OGB products, such as medical, FSA, HSA,
supplemental life and basic life insurance, and any supplemental benefits through
Lion Advantage will be taken from all 12 monthly checks. 

Summer salaries are separate from this program and payments will be in addition to
any deferred payments made in June and July.

ENROLLMENT

To enroll in the plan an employee will sign and date a Faculty Deferred Pay Plan form. 
This form must be returned to the Human Resources Office by August 15th.  Enrollment in the plan becomes effective at the beginning of the plan year (August
1st). This plan will continue from year to year until the employee or university cancels
participation in writing. 

TERMINATION

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 from the university or death.  If a participating employee dies, the money
accumulated in the deferred account will be paid to the surviving spouse or children
or to the estate, according to payroll policies and procedures.

WITHDRAWAL

To withdraw from the plan, the employee will sign and date a new Faculty Deferred
Pay Plan form that will be effective at the end of the plan year (July 31st) and the employee’s salary will revert back to a standard distribution (10 checks)
effective at the beginning of the next plan year (August 1st).

If you have questions regarding the calculations, please call the Payroll Office at-985/549-3801,
for other questions please call Human Resources at 985/549-2001.

Faculty Deferred Pay Plan Form

Frequently Asked Questions

What is the Faculty Deferred Pay Plan?

The Faculty Deferred Pay Plan is a method for academic employees on 9-month appointments
to spread their gross salary over a 12-month plan year from August 1st through July 31st .

When can I enroll in the Faculty Deferred Pay Plan?

Enrollment in the plan can be made anytime prior to August 15th of the plan year.

If I am participating in the Faculty Deferred Pay Plan, do I need to re-enroll annually?

You do not need to re-enroll; this election would continue until you submit a new
Faculty Deferred Pay Plan form to stop the election.

How are my benefit deductions taken if I am enrolled in the Faculty Deferred Pay Plan?

Benefit deductions for mandatory retirement will be taken from the 10 academic year
checks. However, benefit deductions for OGB products, such as medical, FSA, HSA, supplemental
life and basic life insurance, and any supplemental benefits through Lion Advantage
will be taken from all 12 monthly checks.

If I enroll and then decide that I do not want to participate in the Deferred Pay
Plan, can I stop?

Once you are enrolled you are required to continue for the full plan year (August
1st through July 31st )

How could I stop the Deferred Pay Plan?

To withdraw from the plan, you will sign and date a new Faculty Deferred Pay Plan
form that will be effective at the end of the plan year (July 31st ) and your salary will revert back to a standard distribution (10 checks) effective
at the beginning of the next plan year (August 1st ).

What if I separate from Southeastern or change from a 9-month faculty member to a
12-month faculty member prior to the end of the plan year?

Any accumulated monies in the deferred account will be paid in a lump sum.

What happens if I teach summer school?

Summer salaries are separate from this program and payments will be in addition to
any deferred payments made in June and July.

What happens to the money deferred from my academic year paychecks? Will I earn interest
on the funds?

The University would hold your money for disbursement over the summer. You would not
receive interest on the funds.

How will this affect my taxes?

Your tax withholdings will continue to be based on the lasts W-4 on file and will
be calculated on the amount of wages paid, not the earned amount. Your W-2 will reflect
only the wages paid during the calendar year, not the wages earned or deferred. Based
on the Percentage Method to calculate income tax withholding, employees who elect
to receive their salary over 12 pay period will have less income tax withheld per
pay period compared to salary received over 10 pay periods. The amount being withheld
has no effect on the individual’s tax liability.

Is this the only way for a 9-month faculty member to save money for the summer months?

Automatically, yes. However, you may be able to request your bank to move money from
one account to another as a way of saving money or set up an additional direct deposit
through the payroll office. This would allow you to access the money earlier than
summer in cases of emergencies.

Will my Deferred Pay Plan money be directly deposited into my bank account?

Yes, all pay received from Southeastern will be directly deposited into the bank account
on file. If you need to update your banking information, you would sign in to Workday
and update your Payment Elections.

Whom do I contact if I have questions?

You may contact Payroll by phone at 985-549-3801, by email at [email protected] or Human Resources by phone at 985-549-2001 or by email at [email protected].