14.C Salary Payments

Faculty members typically hold either University-year or twelve-month appointments. University-year appointments consist of any two of the three full terms. (Bylaw 5.01) See also Section 5.B, “Criteria for Appointment and Promotion of Instructional Faculty” and Section 5.C, “Instructional Faculty: Classifications.” Faculty with closed term appointments (appointments for a fixed period of time) are paid in equal installments during the term of the appointment. Faculty members on annual or open-ended twelve-month appointments receive 12 monthly salary payments, payable on the last working day of the month. Faculty members on open-ended University-year appointments also receive 12 equal monthly payments, according to one of two payment schedules as described below.

Schedule 2 (effective September 1, 2001).
All faculty who begin employment at the University of Michigan on or after September 1, 2001, and who have University-year appointments that begin in the fall term will receive one-twelfth of their University year salary on the last working day of each month, starting in September and proceeding through August of the following calendar year. Merit raises take effect on September 1. If a faculty member takes a leave without salary for an academic year, the final payment of the year preceding the leave will be on the last working day in August. If a faculty member retires or resigns at the end of the academic year, the final paycheck will be issued on the last working day in August. This pay schedule is referred to as “Schedule 2.”

Schedule 1 (pre-September 1, 2001 appointments).
Regular instructional faculty members who held University-year appointments prior to September 1, 2001, have the option of continuing to receive their salary payments allocated on a fiscal year basis (July 1-June 30). Under these circumstances, if a faculty member takes a leave without salary for an academic year, the final payment of the year preceding the leave will be on the last working day in June (not July or August, i.e., there will be no salary paid after July 1). In addition, if the faculty member retires or resigns at the end of the academic year, the final paycheck will be on the last working day in June (not July or August). Finally, merit raises take effect on September 1 (and not in July). This pay schedule is referred to as “Schedule 1.”

Faculty members being paid according to Schedule 1 have the option, on a voluntary basis, to change to Schedule 2. Once exercised, such a change cannot be revoked (i.e., one cannot change from Schedule 1 to Schedule 2 and subsequently revert to Schedule 1).

The University provides check-depositing services with a number of financial institutions in Michigan and around the country, allowing salary checks to be deposited automatically each payday. A list of participating institutions and the form authorizing direct deposits can be obtained from the Payroll Office or the Hospital Payroll Office (North Ingalls Building, 8th floor, 764-3125).

If a paycheck error occurs, faculty should notify their department administrator. Errors will be corrected as soon as practicable. When necessary, special checks can be issued at the faculty member’s request if the error is for an underpayment. Otherwise, corrections will be included in the individual’s next paycheck.

Income tax withholding, Social Security (FICA), and other mandatory deductions are withheld from each paycheck. In addition, with the faculty member’s written approval, deductions will be made for optional items such as group life insurance, group health programs, retirement plans, parking permits, United States savings bonds, and United Way contributions. Participation in a retirement plan is mandatory for full-time faculty who are age 35 or over and have two years of service. See Chapter 19, “Retirement, Emeritus/Emerita Status” and Chapter 15, “Benefits and Services.”

Faculty who are taking unpaid leaves of absence and wish to continue their benefits should contact the appropriate Payroll Deductions Section before going on leave to make arrangements for the payment of retirement contributions and insurance premiums, which must be paid in advance and on a continuing basis. (Send an email to Payroll@umich.edu, call the appropriate phone number, depending on your Employee ID number or Social Security number, or see <www.payroll.umich.edu/contact.html> General Services Section.) In the case of a leave covered by the Family and Medical Leave Act, the University pays the premiums and retirement contributions, subject to certain payback provisions for the faculty member’s share. See Section 16.C.4, “Family and Medical Leave Act.”

Faculty Handbook: Compensation and Budgetary Procedures: