UW System Administrative Policy 232 (formerly GEN 30/SYS 1244)

Benefit Prepay Deductions and Short Work Break Benefits Eligibility

Original Issuance Date: July 1, 2015
Last Revision Date: July 3, 2025

1. Policy Purpose

The purpose of this policy is to set forth the provisions for the following:

  • Maintaining employee benefit coverage over the summer months for faculty, academic staff, limited appointees, student assistants, and employees-in-training that are on an academic year contract or on an annual contract that does not include work during one or more summer months.
  • Benefit eligibility for employees whose first appointment is a summer service or summer session appointment.
  • Administration of benefit changes that occur during a short work break (SWB).
  • Effective July 1, 2025, maintaining benefit eligibility during a short work break for returning 9-, 10- or 11-month academic staff (AS), university staff (US) and limited appointees (LI).

2. Responsible UW System Officer

Associate Vice President and Chief Human Resources Officer

3.     Scope and Institutional Responsibilities

This policy provides the framework for benefit prepay deductions and short work break benefits eligibility for the university workforce.

4.     Policy Background

Faculty, academic staff, limited appointees, student assistants, and employees-in-training on an academic year contract or on an annual contract that does not include work during one or more summer months who are expected to return to employment on or before the start of the fall semester are eligible to maintain insurance coverage through the summer months by prepaying the benefit deductions. Employees are ineligible for Summer Prepay Deductions when employment is terminated at the end of the spring semester when there is not an expectation to return to an appointment (at any UW System institution) for the fall semester and/or the employee does not have a summer appointment, unless they have been granted a leave of absence as noted in this policy.

Effective July 1, 2015, the Summer Prepay Deductions and Summer Session Benefits Eligibility transitioned from an administrative policy to a UPS Operational Policy. The UPS Operational Policies were integrated into the UW System Administrative Policy series as of July 15, 2019.

Effective July 1, 2025, the applicability of the Summer Prepay Deduction and Summer Session Benefits Eligibility was expanded to any AS/US/LI who work on a 9-, 10- or 11-month recurring appointment, regardless of the time of year during which the short work break occurs. The policy was re-named to reflect this new inclusion. Additionally, the period over which the benefit prepay deductions are to be withheld was changed from the three-month period immediately preceding the recurring short work break to the full period of employment between short work breaks.

5.     Policy Definitions

Academic or C-Basis Appointments: Appointments directly tied to the academic year calendar

Annual or A-Basis Appointments: Appointments for the fiscal year

Leave of Absence: Under Wis. Stat. § 40.02 (40), “Leave of absence” means any period during which an employee has ceased to render services for a participating employer and receive earnings and there has been no formal termination of the employer−employee relationship.

Short Work Break (SWB): An action in the Human Resource (HR) System to denote a period of time when an employee is not working in his/her primary job but is still considered an active employee for benefits purposes. A Short Work Break is a recurring, temporary Leave of Absence for purposes of benefits eligibility. A Short Work Break cannot exceed 3 months in duration.

Summer Basis Appointments: Employment periods between the end of one academic year and the beginning of the next, paid as determined by the institution. This includes both Summer Service V-Basis and Summer Session S-Basis appointments.

Benefit Prepay Deductions: Multiple insurance deductions from a continuing employee’s regular annual period of active employment to maintain insurance coverage during a short work break.

6.     Policy

A. Eligibility Criteria for Benefit Prepay Deductions

Faculty, academic staff, university staff, limited appointees, student assistants, and employees-in-training on an academic year contract or on an annual contract that does not include work during one or more months who are expected to return to benefits eligible employment at the conclusion of their Short Work Break are eligible to maintain insurance coverage through the period of the Short Work Break, and will prepay the employee contributions necessary for those benefits through supplemental benefit deductions during the annual period of active employment immediately preceding the Short Work Break. These supplemental benefit deductions will be evenly divided between the first two pay periods of each month during the annual period of active employment. The total amount deducted during this time frame will equal the required employee benefit contributions for the time period encompassed by the Short Work Break.

The following employees also qualify for benefit prepay deductions:

  • Academic C-basis employees who are terminating UW System employment after working a summer service or summer session appointment. These employees are eligible for summer prepay deductions that pay for coverage through the end of their employment.
  • Employees who move from an Academic C-basis to an Annual A-basis appointment (or vice versa) are eligible to continue benefits between appointments even if the employee does not work during one or more of the summer months.
  • Employees in the OT1 employee category may also be eligible for summer prepay deductions if they meet one of the criteria outlined above.
  • Academic C-basis employees with continuing appointments, who provide notice no later than May 1st that they will not be returning the following academic year, will be granted a terminal leave of absence without pay beginning on the last day of the academic contract year and continuing through the day prior to the new academic year contract start date. An employee granted a terminal leave of absence pursuant to this paragraph will remain in employment status and will retain access to their work e-mail account and other appropriate resources for the duration of the leave.  Employees on a terminal leave of absence under this paragraph are required to remain in communication with their department and their institution as needed for the duration of the leave.

Each institution is responsible for identifying who is eligible for benefit prepay deductions based on the criteria set forth in this policy.

  • If benefit premiums are unable to be collected through payroll via the benefit prepay deduction process (i.e., insufficient earnings during the annual period of active employment immediately preceding the Short Work Break:),
    • If the employee is a C-basis Academic Year employee and the employee has a summer appointment, employee paid deductions will be deducted from the summer appointment earnings.
    • If the C-basis Academic Year employee does not have a summer appointment or does not have sufficient earnings from the summer appointment, the benefits billing process must be used to collect premiums from eligible employees. Once placed on benefits billing, the employee must remit direct payment in a timely manner to continue coverage.
    • If the employee is a recurring 9-, 10- or 11-months employee other than a C-basis employee, and the employee has a temporary assignment during their Short work break, employee paid deductions will be deducted from the temporary appointment earnings.
    • If the employee is a recurring 9-, 10- or 11-months employee other than a C-basis employee, and the employee does not have a temporary appointment or does not have sufficient earnings from the temporary appointment, the benefits billing process must be used to collect premiums from eligible employees. Once placed on benefits billing, the employee must remit direct payment in a timely manner to continue coverage.

The expectation to return to active employment following the Short Work Break for insurance benefit purposes does not constitute a contractual agreement or immediately imply eligibility for the Wisconsin Retirement System (WRS). WRS eligibility needs to be evaluated once the details of the contract are known and mutually agreed upon.

For C-basis academic year employees, employment is terminated at the end of the spring semester when there is not an expectation to return to an appointment (at any UW System institution) for the fall semester and/or the employee does not have a summer appointment. These employees are ineligible for Benefit Prepay Deductions, unless they have been granted a leave of absence as noted in this policy.

For all other employees, employment is terminated at the end of the appointment term when there is not an expectation to return to an appointment (at any UW System institution). These employees are ineligible for Benefit Prepay Deductions.

See section 6.D of this policy for information regarding late termination notices.

B. Determining Benefit Prepay Deductions in the HR system

Institutions will use the report from the HR system along with evaluating employees who would not appear on the HR system annual report to determine employees who will have benefit prepay deductions from the first two paychecks of each month during the annual period of active employment.

I. If an employee’s academic year appointment is benefits-eligible and the benefits primary flag is attached to that appointment:

The HR system will automatically set up the employee for benefit prepay deductions. UW-Shared Services, Service Operations will provide a list of these employees to each institution for review following the load. The institution must work with UW-Shared Services, Service Operations to take action to stop or change the benefit prepay deductions, if appropriate.  Employees who are enrolled in the Academic Pay Deferral program under System Administrative Policy (SYS) 216, Academic Basis Pay Deferral Policy, will not be enrolled in Benefit Prepay Deductions, since these employees will have summer employee benefit contributions withheld from their summer paychecks.

III. If an employee’s annual basis appointment is benefits-eligible but the employee will not be working during one or more months, and the benefits primary flag is attached to that appointment:

The HR system will not automatically set up the employee to receive benefit prepay deductions. The institution must identify these employees, place them on a short work break in the HR system for the duration of the short work break and work with UW-Shared Services, Service Operations to manually set up the benefit prepay deductions.

C. Benefit Plans Subject to Benefit Prepay Deductions

I.   Benefit Prepay Deductions will be deducted for the following plans:

    • State Group Health Insurance
    • 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 benefit 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 benefit prepay deduction.

II.   Benefit Prepay Deductions will not be deducted for the following plans:

    • Flexible Spending Account (FSA) Program
    • Health Savings Account (HSA) Program
    • Wisconsin Retirement System (WRS) (including WRS Additional Contributions)
    • UW 403(b) Supplemental Retirement Program (SRP)
    • Wisconsin Deferred Compensation (WDC) 457 Program

Employees on an academic year contract will have 18 deductions per year for FSA and HSA plans. Employees who do not work in the summer will also have 18 deductions per year for SRP WDC, WRS, and WRS Additional Contributions. If an employee does work in the summer, SRP, WDC, WRS, and WRS Additional Contributions will be automatically deducted from summer earnings, as per section 6.C.III, below.

Other eligible employees will have a number of deductions per year for FSA and HSA plans, SRP WDC, WRS, and WRS Additional Contributions that is based on the number of months worked during their period of active employment, and the number of pay periods designated during those months of active employment.

III.  Plans Subject to Deductions from Earnings for work performed During the Short Work Break

    • UW 403(b) Supplemental Retirement Program (SRP)
    • Wisconsin Deferred Compensation (WDC) 457 Program
    • Wisconsin Retirement System (WRS) (including WRS Additional Contributions)
    • Flexible Spending Account (FSA) Program

Note– Required WRS contributions will be deducted from every paycheck including the third paycheck of the month when there is a third paycheck. Optional WRS additional contributions (and 403(b) and WDC) will be deducted from the first two paychecks of each month, and will not be deducted from the third paycheck of the month when there is a third paycheck.

D. Late Termination Notice After Benefit Prepay Deductions Taken

If benefit prepay deductions are deducted but it is later determined that the employee will not return to regular active employment or will terminate employment during the Short Work break, a termination date must be entered in the HR system and any benefit prepay deductions deducted for prospective coverage must be refunded, unless they have been granted a terminal leave of absence as noted in this policy section 6.A.

Benefits should terminate per the plan contract. Continuation information will be provided to the terminating employee through the COBRA process.

Institutions shall not enter a retroactive termination date. The termination date entered must be the. date the institution is informed of the employment termination, the date the employee finishes working in a summer appointment, or at the expiration of a terminal leave under Section 6.A, whichever is later.

E. Late Notification of Summer or Fall Appointment – Benefit Prepay Deductions Not Deducted or Refunded Due to Termination Date

If an employee does not have benefit prepay deductions because the employee did not initially meet the eligibility criteria as outlined in section 6.A of this policy, but later meets the eligibility criteria AFTER the benefit prepay deductions were scheduled to be deducted, the employee’s eligibility for insurance coverage during the summer months is outlined in sections 6.E.I and II below.

I. Notification of New Appointment or Reappointment Received Within 30 Days of Termination Date or COBRA Notice

If notice of the new appointment or reappointment is received within 30 days of the termination date or 30 days after the date the COBRA notice is sent, whichever is later, the employee is eligible for continuous insurance coverage over the period of the work break.

The institution must rehire the employee to rescind the termination and place the employee on a short work break. Benefits must be reinstated to reflect continuous coverage. If the employee has a summer appointment, employee paid deductions will be deducted from the summer appointment earnings. If the employee does not have a summer appointment, the employee must be placed on benefits billing to collect premiums for insurance coverage until premium deductions can be resumed through payroll deductions.

II. Notification of New Appointment or Reappointment Received More Than 30 Days After Termination Date or COBRA Notice

If notice of the new appointment or reappointment is received more than 30 days after the termination date or more than 30 days after the date the COBRA notice is sent, whichever is later, the employee is not eligible for continuous insurance coverage over the break in active employment. This is considered a valid break in employment. The employment termination date will remain as entered in the HR system.

Insurance coverage will end per the plan contracts based on the termination of employment. Benefit eligibility will be re-evaluated upon the start of the future appointment. If eligible for benefits upon rehire, the employee must submit new benefit applications within of the applicable deadlines based on the appointment start date.

F. Benefit Eligibility for New Employees Hired on Summer Contract who also have a Fall Appointment

I. WRS Eligible Fall Appointments – If a new employee works on a summer contract prior to a WRS-eligible fall appointment, the following applies:

    • Benefits Eligibility: WRS and benefit eligibility begin the first day of the summer appointment.
    • Benefits Enrollment Period: All benefit enrollment periods are based on the start date of WRS employment which would be the summer appointment start date. In situations where there is greater than a 30 day break in employment between the summer and the fall appointments, the employee is still eligible for benefits as of the first day of the summer appointment since that is the WRS hire/enrollment date.
    • Expectation Change: If an employee secures a WRS eligible fall contract while working in a non-WRS eligible summer appointment, the employee is eligible for benefits when the expectation changes (i.e., the date of securing the fall contract). If the employee has not secured a fall employment contract either at the beginning of or during the summer contract, the employee will be evaluated for benefits eligibility at the start of the fall semester.
    • Premium deductions during Summer Appointment or Employment Breaks: Employees pay benefit premiums through benefits billing for insurance coverage until premium deductions can be deducted through payroll deduction from an Annual A-basis or Academic C-basis appointment. Benefit premium deductions will be set up to be deducted from Summer Service V-Basis and/or Summer Session S-Basis appointments. If the summer employment benefits coverage period is contained solely within the month of September, the institution may set up a benefit deduction from the September payroll periods, to collect missed insurance deductions in lieu of using benefits billing.

II. Non-WRS Eligible Fall Appointments – if a new employee works on a summer contract prior to a non-WRS-eligible fall appointment, the following applies:

If there is a break of fewer than 30 days between summer and fall appointments:

    • Benefits Eligibility: If there is less than a 30-day break between the summer and fall appointments, the duration attribute of the two appointments can be combined to determine benefits eligibility under the Graduate Assistant/Short-Term Academic Benefits Package.
    • Benefits Enrollment Period: If benefit eligibility requirements are met, benefit eligibility begins as of the first day of the summer appointment and all benefit enrollment periods are based on the start date of the summer appointment.
    • Expectation Change: If an employee secures a benefits-eligible non-WRS fall contract while working in a summer appointment, the employee is eligible for Graduate Assistant/Short-Term Academic Staff Benefits Package benefits when the expectation changes, (upon securing the fall contract) provided there is a less than 30 day break between appointments.
    • Premium deductions during Summer S-Appointment or Employment Breaks: Employees pay benefit premiums through benefits billing to collect premiums for insurance coverage until premium deductions can be deducted through payroll deduction from an Annual A-basis or Academic C-basis appointment. Benefit premium deductions are not set up from Summer Service V-Basis and/or Summer Session S-Basis appointments. If the summer employment benefits coverage period is contained solely within the month of September, the institution may set up a pay line from the September payroll periods, to collect missed insurance deductions in lieu of using benefits billing.

If there is a break equal to or greater than 30 days between summer and fall appointments:

    • Benefits Eligibility: If there is at least a 30-day break between the summer and fall appointments, each appointment must individually meet the requirements under the Graduate Assistant/Short-Term Academic Staff Benefits Package.
    • Benefits Enrollment Period: If eligibility requirements are not met by the summer appointment, benefits eligibility should be reevaluated at the start of the fall appointment.
    • Expectation Change: Not applicable if there is more than a 30 day break between non-WRS eligible appointments.

G. Employee Benefit Election Changes due to Life Events while on Short Work Break

When an employee on a short work break has a qualifying life event (marriage, birth, adoption, etc.) which results in a change in insurance coverage level while on a short work break, any additional premiums owed will be collected from the summer appointment earnings if the employee has a summer appointment (or a temporary appointment if the employee is not a C-basis academic year employee). If the additional premiums cannot be deducted from the summer/temporary appointment earnings or the employee does not have a summer/temporary appointment, the additional premiums owed will be collected through the benefits billing process or through a payroll deduction on the employee’s first paycheck when they return from the short work break.

More information on qualifying life events is available on the UW System Human Resources Family Changes web page.

H. Employer Responsibility for Payment of Fringe Benefits for Short Work Break Coverage when Employee Transfers between UW System Institutions

For an employee who is eligible for benefit prepay deductions, and whose spring and subsequent summer or fall appointments (if a C-basis employee), or whose appointments immediately before and after the short work break (if not a C-basis employee) are with two different UW System institutions:

  • If the employee is a C-basis employee, the employing institution of the employee for the spring semester will be responsible for paying the fringe benefits for the summer coverage. The spring appointment should continue and be placed on a SWB. The spring appointment termination date must align with the end of the summer appointment; or the date the employee is returned from SWB, whichever is later.
  • If the employee is not a C-basis employee, the employing institution of the employee immediately before the short work break will be responsible for paying the fringe benefits for the short work break coverage. The appointment preceding the short work break should continue and be placed on a short work break. The appointment termination date should align with the end of the short work break.

I. Policy Administration

This policy is administered and monitored by UW System Human Resources. Policy questions should be directed to UW System Benefits Policy Administration. There may be rare exceptions to the criteria outlined in this policy. The UW System Human Resources Benefits Director, or designee, will determine if the exceptions are allowable.

7.     Related Documents

UW System Human Resources, Family Changes
UW System Human Resources, Summer Prepay Resources

8.     Policy History

Revision 7: July 3, 2025
Revision 6: March 6, 2025
Revision 5: October 21, 2022
Revision 4: August 5, 2021
Revision 3: May 6, 2021
Revision 2: July 9, 2020
Revision 1: April 22, 2019
First approved: July 1, 2015

9.     Scheduled Review

July 2030