Benefit Plans Premium Deduction Holiday in June

Insurance premium payroll deductions for University-sponsored health, dental, vision, life, accidental death and dismemberment and long term disability plans will not be deducted from June paychecks issued to faculty and staff. The absence of June deductions will not interrupt plan coverage for June.

The June premium “holiday” will enable the University to shift from its current schedule of collecting premiums in the month before the month of coverage to a new schedule of collecting payments during the month of coverage. May deductions will pay for June coverage as has been customary. No premium deductions will be taken from June paychecks, but coverage will continue in June. In July, premium deductions will resume, paying for the coverage in effect during July.

Premium collections resume with the first biweekly payroll in July and will continue through the monthly payroll scheduled for the end of the month. July deductions will pay for July coverage. Subsequent monthly deductions will pay for that month's coverage.

This change in the deduction schedule is a part of the University's ongoing health plan strategy and helps to streamline benefit administration in preparation for 2007 benefit plan changes and the upcoming transition to on-line Open Enrollment in the fall.

The change also aligns with schedules for other benefit plans that take same-month deductions, including flexible spending account, long-term care, short-term disability and retirement. These plans currently taking same-month deductions will not be affected by the June premium holiday.

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