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New Hire Fact Sheet - Benefits Deductions on your Paycheck
When will payroll deductions begin?
Insurance premiums are deducted from the same month that they occur.
For example: The deductions from your paycheck in July covers your July premiums.
As a new hire, your first deduction depends on the time of month you enroll. Enrollments received after the 10th of the month may not be reflected in that month’s paycheck, resulting in a double deduction the following month.
When is my mandatory retirement plan effective?
The university will review your job classification and appointment to determine your eligibility for a mandatory retirement plan. There are two plans: the 401(a) Plan and the PERA Defined Benefit Plan. In most cases, employees will only be eligible for one plan.
CU’s 401(a) Retirement Plan: Participation is mandatory for eligible faculty and university staff. If you meet this criteria, you will be enrolled automatically on the first of the month following your hire date. Contributions will be made via automatic payroll deduction at the end of each month.
PERA (The Public Employees’ Retirement Association’s Retirement Plan): Participation is mandatory for Classified Staff. You will be automatically enrolled on your hire date, and contributions will be made via automatic payroll deduction from each monthly paycheck.
PERA Choice: Some employees have a choice between the two plans. If your job classification is faculty or university staff, and you have an account with PERA upon hire, you will receive a PERA choice letter. You must make a one-time irrevocable choice to participate in either CU’s 401(a) Retirement plan or the PERA plan. You have 30 days from your hire date to make this election. If you do not take action, you will automatically be placed in the PERA plan, effective from date of hire. Once your enrollment is processed, contributions to your retirement plan will be made the same month you choose a plan unless it was received after the payroll cutoff date. Any necessary adjustments to your contributions will be made on the next available pay period.
Last updated: 6/2018