Fractional Appointed Benefitted Staff – Election for Deferral of Wage Payments
Information and Resources
Overview
Some university and SAIE staff positions are fractional; staff work a portion of the year but may have, for example, time off in the summer. The most common example in SAIE is in LEP with several staff roles created as 0.75 FTE. Depending on departmental scheduling, fractional staff typically do not work during certain academic calendar breaks but remain employed with the university.
During the departmental on-boarding of a fractional staff member, the supervisor will discuss with the staff member compensation options of deferring or not deferring pay and why the options exist. The supervisor should ensure the staff member understands how benefits are funded, if they enrolled in DU benefits, and why there is an option to defer their pay to cover the cost of benefits.
Fractional appointed, benefited staff have the option to be paid a modified (lower) amount over 12 months, or paid in full during the months they work. In either scenario they will be paid the agreed annual salary rate.
Whether a staff member elects to defer wages or not, the staff member will have to complete and sign the University of Denver Election Form – Deferral of Wage Payments for Staff (Appendix I).
Deferred Wages & Benefit Coverage
This section is relevant to fractional, appointed benefitted staff roles when the staff member has enrolled in DU benefits.
The hiring manager or supervisor should brief a new staff member about the wage deferral process. Upon hiring a fractional appointed, benefitted staff member, the staff member will be given the choice to collect their salary during the months they work, or to defer a fraction of their salary over an entire year (12 months) including time they are not working. Most fractional staff prefer to defer their salary over the year so a portion of their wages (the deferred wages) cover the cost of the out-of-pocket portion of the benefits during the period when no income is earned.
If a staff member elects to not defer their compensation, and they are enrolled in University of Denver benefits, they will need to pay their benefits out of pocket to ensure coverage continuity during the time they will be employed at DU but off the payroll cycle.
For these staff members, 30 days prior to a break in their payroll:
• Employee should email Benefits@DU.edu to confirm the benefits amount and check their wage statement.
•The staff member should arrange a Zoom call or meeting with DU Benefits to ensure the check is made out to the proper payee, the amount is correct for coverage continuity throughout the break period and to confirm the mailing or physical drop off address for the payment.
It is the staff member’s responsibility to ensure this process is completed for benefits continuity. The staff member should also follow-up with DU Benefits to ensure the check has posted to avoid a benefits interruption.
Staff Departures
Should a benefitted, fractinal staff member depart the university mid-month, benefit coverage will be through the month. A refund might be possible should a staff member, for example, depart DU in July but had paid the out-of-pocket amount for their benefits for July and August when they were not working. In this example, if they depart in July, they will receive benefit coverage through July 31st with a refund for August.
Departing staff members, and their supervisor, should consult with Payroll and DU Benefits to address any questions and determine the projected balance of the final paycheck and end of benefits coverage.
END
Appendix I
ELECTION FORM- DEFERRAL OF WAGE PAYMENTS FOR STAFF
Under Colorado law, I understand that I am entitled to payment of wages within ten (10) days after the close of the pay period in which the wages are earned. As a LEP Academic Counselor, I work approximately ten (10) months out of each academic year. By my initials below, I elect one of the following options as the timing for the payment of my wages:
_____ Pay on University’s regularly scheduled pay periods for the approximately ten (10) months during which I am actively working.
_____ Pay on University’s regularly scheduled pay periods for twelve (12) months of each calendar year, provided that I have actively worked for approximately ten (10) or more months of the corresponding academic year.
I understand that my annualized compensation will remain the same, regardless of the election I have made as to timing of payment. I further understand that I remain an at-will employee of the University. Upon termination of my employment for any reason I will be paid out all earned and unpaid wages as provided by law.
My election will remain in effect until I notify the University in writing that I wish to make a change.
_________________________ _______________
Signature Date