Prepayment employee version_2_3_2012

Nash-Rocky Mount Public School System

HB 720Prepayment of Teachers


Who will this Affect?This legislation will affect all 10 month employees paid on salary including teachers, support staff, most assistant principals, all child nutrition staff, and teacher assistants.

This will not affect employees who work 11 or 12 months.


House Bill 720 eliminated the prepayment of salary for teachers, effective July 1, 2012 (will be implemented with the beginning of the 2012-2013 school year). The elimination of pre-payment of teacher’s salaries does the following:

What we know


1.Working less than a full month and being paid a full month is prohibited, as this constitutes prepayment. Normally, our 10 month employees are paid a full month’s salary in August, the two weeks they worked in August and the two weeks they will work in September. Employees will only be paid for time worked and not time that will be worked.


2. Teachers and all 10 month employees will still be paid for all 10 months of employment. The amount you are paid is NOT changing. The only thing changing is WHEN you are paid

3. All eligible 10 month employees can still request and be allowed to have their salaries spread out over 12 months.


4. The only compliant option according to the current law is to provide partial payment at the end of August(for days worked in August only) and full payment at the end of September (for all days worked in September). We are waiting for direction from the Department of Public Instruction before deciding on pay dates.


5. Any or all of this is subject to change depending on decisions made in Raleigh. It may be as late as May 2012 before we know more. As stated the law to prepay has been repealed , but as it stands now adjustments to that law are required in order to facilitate change. 6. This is going to be a major adjustment for all 10 month employees. At this point, there are many unanswered questions and we will keep you informed as we learn more.


What about the deduction for hospital insurance?

Your September premium normally is deducted from your August check. We will begin deducting your check for this premium this February, March , April, and May of 2012 . You may choose not to have this deduction by completing the Hospitalization Waiver Form, but will be expected to provide payment by August 31, 2012 for any owed premiums.


70/30 Basic Plan

80/20 Standard Plan

Employee Only 5.41Employee/Children 47.03 67.95

Employee/Spouse 121.18 149.51

Employee/Family 129.07 158.19

Listed below is the amount which will be deducted from your check depending on the type of coverage. The deduction will be in your Feb – May, 2012 check.


Wellington Benefit (cafeteria plan) deductions

This year the deductions will be collected in 9 months for all 10 & 11 month employees. Deductions for these benefits will not come out of your June, July, or August check. These months are skipped so you do not need to be concerned about these deductions.


What about deductions for mortgage payments, loans, and voluntary retirement, child support, and student loans?

Employees will need to make plans with their lender or annuity provider to cover the month of August 2012. These deductions will not be paid on behalf of the employee.

Education

Prepayment employee version_2_3_2012