Summer Prepay Insurance Premiums

Overview

Summer prepay insurance premium deduction are used to maintain insurance coverage between academic years for employees who do not work one or more months during the summer (contract break) and are expected to return in the fall. Summer prepay insurance premium deductions are in addition to regular insurance premium deductions.

Eligibility

Faculty, academic staff, limited appointees, student assistants, and employees-in-training are eligible for summer prepay insurance premium deductions if:

  • their academic (9 month) or annual (12 month) contract does not include work during one or more summer months;
  • they are expected to return to benefits eligible employment on or before the start of the fall semester; and
  • they are eligible to maintain insurance coverage through the summer months.

University Staff employees on a summer leave are not eligible for summer prepay insurance premium deductions as they are either laid off between work periods or placed on a leave of absence.

Deductions

Summer prepay insurance premium deductions occur on the first two pay periods of the month in March, April and May payrolls and apply to the following plans:

  • State Group Health Insurance
  • Preventive and Supplemental Dental Insurance
  • Vision Insurance
  • State Group Life Insurance
  • Individual & Family Life Insurance
  • Accidental Death & Dismemberment Insurance
  • Accident Insurance
  • Income Continuation Insurance

If paid through payroll deduction, prepaid summer deductions mirror the pre/post-tax deduction tax status of deductions during the employment contract period. Premiums paid through the benefits billing process are processed as post-tax.

Employees subject to taxable income under State Group Life Insurance will have taxable income applied to each bi-weekly summer prepay deduction.

Timeline

For 2024, summer prepay insurance premiums will be deducted from the following paychecks and will appear as a lump sum amount on your earnings statements (PREBTX, PREATX):

  • March 7
  • March 21
  • April 4
  • April 18
  • May 2
  • May 16

Eligible employees are sent emails prior to each summer prepay insurance premium deduction with an estimated summer prepay deduction amount. Employees should review their earnings statements and confirm summer prepay insurance deductions were deducted.

Eligible employees whose summer prepay insurance premiums are not deducted in the spring will be billed directly for the additional premiums due. Payment must be received by the billing invoice due date or insurance benefits will be canceled due to non-payment. If benefits are canceled due to non-payment, the next opportunity to enroll in some insurance benefits may be during the fall Annual Benefits Enrollment period with an effective insurance coverage date of January 1.

Resources

Questions

Some frequently asked questions are listed below. After reviewing this information if you have questions about:

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If your summer or fall employment status changes after summer prepays are deducted, you may receive deduction refunds.

If you will be terminating employment, and will not return in the fall, contact your institution human resources office to determine your employment and benefits termination date.

Review the Life Events > Employment Changes web page for information on insurance coverage end dates.

If you anticipate that you will experience a family status change that will change the level of coverage for your insurance (for example, individual to family, family to individual), review the Life Events > Family Change web page. You may also reach out to your benefits contact about the affect on your insurance benefits and your summer prepay deductions. Some examples of family status changes that may affect your summer prepay deductions are marriage, adoption, birth, divorce.

If you are an academic year employee and are paid during the summer for a summer appointment, depending on the benefit and/or retirement plans you are enrolled in you will have deductions as listed below. For some plans you can change your enrollments as outlined below.

  • Flexible Spending Account (FSA) Program
    • FSA contributions are deducted from the first two biweekly paychecks of the month (24 paychecks a calendar year).
    • Your annual election can be changed during the year if you experience a qualifying life event. See the Life Events web page for more information.
    • Your per pay period deduction amount will automatically adjust based on your annual election, amount deducted year-to-date, and the number of pay periods remaining in the calendar year. Your contributions will not exceed your annual election or the plan limits.
  • Health Savings Account (HSA) Program
    • Effective January 1, 2024 for employees paid on a academic year (9-months) contract HSA contributions will be deducted from 18 paychecks during the academic year only. Previously HSA contributions were deducted from the first two biweekly paychecks of the month (24 paychecks a calendar year). 
    • If you are enrolled in a High Deductible Health Plan (HDHP) you can change your annual HSA election at any time during the year.
    • Your per pay period deduction amount will automatically adjust based on your annual election, amount deducted year-to-date, and the number of pay periods remaining in the calendar year. Your contributions will not exceed your annual election or the IRS limit.
  • Wisconsin Retirement System (WRS)
    • You are not able to change your enrollment or contribution deductions.
  • UW 403(b) Supplemental Retirement Program (SRP)
    • You can change your contribution amount at any time during the year.
    • Contributions deducted from your summer pay will not cause you to exceed IRS limits set for the plan. Contributions automatically stop when you reach the IRS limits.
  • Wisconsin Deferred Compensation (WDC) 457 Program
    • You can change your contribution amount at any time during the year.
    • Contributions deducted from your summer pay will not cause you to exceed IRS limits set for the plan. Contributions automatically stop when you reach the IRS limits.

On any summer paychecks you receive you will see the movement of summer prepay funds from the prepay code to the applicable insurance deduction code.

Health Insurance Opt-Out Incentive payments are processed on the first two biweekly paychecks of the month (24 paychecks a calendar year) regardless of is you have pay.

Effective January 1, 2024 Health Savings Account (HSA) contributions will be processed on 18 paychecks during the academic year for employees paid on a academic year (9-month) contract. Previously HSA employer contributions were processed on summer paychecks regardless of if you had pay.

Every effort has been made to ensure this information is current and correct. Information on this page does not guarantee enrollment, benefits and/or the ability to make changes to your benefits.

Updated: 01/31/2024