Overview
University faculty members with a nine-month basis assignment may be eligible to elect salary spread so that payments are received in the summer. Once salary spread has been elected, the arrangement is irrevocable for the remainder of the fiscal year. It will remain in effect for all future fiscal years until a cancellation request is sent to Payroll Services or until the employee becomes ineligible.
Eligibility
To be eligible for salary spread, the employee must be assigned in a faculty title at the university. In addition, assignments must have a nine-month basis, end before June (i.e., not a summer assignment), and cannot be paid from a grant* (i.e., 26 account number).
*Note: The grant-funding limitation does not apply to summer assignments and their funding. If an employee has non-grant funding for a nine-month assignment and grant funding for a summer assignment, the non-grant-funded nine-month salary is eligible for salary spread.
Participation
Employees who meet all the criteria may elect salary spread by completing and sending in the Salary Spread Request Form to Payroll Services. This form must be received no later than Aug. 31 for an employee assigned for the fall semester or Jan. 15 for a new employee assigned for the first time in the spring semester.
Limit Restrictions
Salary deferral amounts are subject to the limit governed by Section 402(g)(1)(B) of the Internal Revenue Code of 1986. This limit restricts the salary amount that can be deferred from the September through December pay periods to the next tax year. Once this limit is reached during the fall semester, all further salary deferral will stop until the next calendar year. As a result, individuals who reach the limit may notice a fluctuation in pay during the course of the 12 month pay period.
Change in Status
In the event of a change in status to an employee's assignment that causes it to no longer meet the requirements stated above, a full settlement of all reserved amounts will be paid to the employee. If the employee wishes to be re-enrolled in Salary Spread at the start of the next fiscal year, and meets the requirements, a new Salary Spread Request Form will need to be submitted. Other changes in status that may result in the cancellation of salary spread and a settlement of reserved amounts include separation, retirement, or death.
Additional Information
Benefits eligible employees who elect salary spread and participate in either the Teacher Retirement System (TRS) or the Optional Retirement Program (ORP) will make a retirement contribution from each of the 12 payroll checks. Benefits eligible employees enrolled in insurance coverage who elect salary spread will have insurance premium deductions and premium sharing on each of the 12 payroll checks. For questions regarding your UTSaver participation or insurance coverage, please contact the Human Resource Service Center (HRSC) by email or by phone at 512-471-4772.
Cancellation
Requests for the cancellation of salary spread will go into effect the next fiscal year, beginning September 1.