Premiums are paid in the month for which there is coverage.

Premium payments are paid in the month for which there is coverage. For more information, please visit the Payroll Department's website.

4/4 Appointments

If your appointment is September through December, health and welfare benefits are only deducted September through December. If your appointment is January through April, the benefit deductions are doubled January through April to cover January through August since no deductions are made during the summer term. If your appointment is May through August, you will be manually billed. If your pay cannot support the double deductions, you will be manually billed for anything that could not come out of your January through April payroll.

8/8, 9/9, and 10/10 Appointments

Monthly benefit deductions are withheld for September through December. Double deductions are withheld for January through April to cover the January through August period since no deductions are made during the summer term. If your pay cannot support the double deductions, you will be manually billed for anything that could not come out of your January through April payroll.

Additional Information

Any Less than Annual paid employee that had double deductions in January through April and is still actively working in the following fall term will see a "catch up" process run in their October payroll. This process will include premium increases effective July 1 for the new plan year that could not be deducted in the January through April double deduction process.

Those that terminate their employment (leave the University or retire) on or after April 30 and were double deducted will have active coverage through August 31. Those that retired from the University will have their retirement benefits begin September 1 with Benefit Management Service (BMS).

If you terminate employment (leave the University or retire) between January 1 but before April 30, your benefits will end according to the following schedule:

• If you terminate in January, your coverage will end February 28 (February 29 on leap years) 
• If you terminate in February, your benefits will end April 30 
• If you terminate in March, your benefits will end June 30
• If you terminate in April through August, your benefits will end August 31

After-Tax Deduction

The University follows guidance of the IRS in determining taxation of benefits. The employee contribution towards the cost of adding a domestic partner will be taken on an after-tax basis.

To calculate the after-tax deduction, please see the below example:

Electing two adult coverage under Panther Gold
(July 1, 2023 – June 30, 2024)

Two Adult Contribution      $331
Individual Contribution      - $91
Total After-Tax Amount    $240

Imputed Income

Imputed income is the estimated value of the employer’s financial contribution towards health insurance coverage for domestic partners and must be reported as taxable wages earned. This tax penalty, depending on the individual and the estimated value of the health benefit, can be large. You are advised to consult with your own tax counsel to better understand the taxation prior to electing the benefit coverage for your individual circumstance.

To calculate the imputed income for the difference in adding a domestic partner, please see the below example.

Electing two adult coverage under Panther Gold
(July 1, 2023 – June 30, 2024)

Two Adult University Contribution      $1,285
Individual University Contribution       - $553
Total Imputed Income Amount             $732

Please review the below sample pay statement that reflects how this taxation will apply.

For more information, please visit the Domestic Partners Benefits page.

Those on the biweekly payroll schedule will have their FSA and/or HSA elections split in half and deducted out of the first and second payroll each month. Those on the monthly payroll schedule will have their FSA and/or HSA elections taken in full from the end of month payroll.

FSA and HSA deductions are sent once a month, at the end of the month, from Pitt to UPMC after all payrolls have completed for that month. Therefore, the deduction will not be reflected in your UPMC Consumer Advantage account until after that month has concluded.

Retirement contributions are calculated as a percentage of an employee’s gross compensation. Compensation does not include any taxable welfare benefits, fringe benefits, cash payments under the flexible benefits plan in exchange for waiving benefits, lump-sum cash-outs of vacation or sick pay paid to terminating employees, expense reimbursements, moving expenses, bonuses, commissions, overtime, supplemental payments, or payments under any early retirement, severance, or similar program.

The retirement contribution amount is then deducted from the gross pay either before taxes are taken out (pre-tax) or after taxes are taken out (Roth or after-tax). Retirement is always deducted from each pay, whether biweekly or monthly, at the same percentage of compensation that the employee has elected through the TIAA portal.

The University match, if applicable, is also calculated based on gross compensation. No taxes are taken out of University matching contributions at the time of the contribution. Taxes will be taken from University matching contributions at the time those funds are withdrawn from the retirement savings account.

PittPerks is a program that provides a broad range of discounts and the opportunity to purchase certain voluntary benefits at group rates through payroll deductions to employees. New offerings are added frequently. You may purchase certain benefits at group discounts that may be paid for through payroll deduction.

• Group Home and Automobile Insurance – Features online quotes and comparisons between MetLife and Travelers
• Pet Insurance – Offered through ASPCA
• Identity Theft – Offered through InfoArmor
• MetLife Legal – Offered through MetLaw
• MetLife Supplemental Medical Plans – Offered through MetLife

All voluntary elections deducted through payroll are on a post-tax basis. Those on the Bi-weekly payroll schedule will have the monthly premium(s) split in half among the first and second pay of the month. Those on the Monthly/UPP2 payroll will see the deduction in full in the month end pay. Those on a less than annual contract will have their premium(s) deducted January – April and September – December. For any missed deduction, PittPerks (Corestream) will bill you directly for those premiums.

Long Term Care coverage premiums are billed as an after-tax deduction.

• For monthly paid employees: the premium is paid monthly via payroll deduction.
• For biweekly paid employees: the premium is paid from their second biweekly pay via payroll deduction.
• For employees paid on a less than annual basis: employees will pay the regular premium amount for the first half of the plan year. For the second half of the plan year, the premiums will increase to cover the remaining cost of the Long Term Care coverage for the plan year.

If at any time an employee can no longer support the premium for Long Term Care coverage via payroll deduction (for instance, during an unpaid leave, transitioning to Long Term Disability, etc.), the employee should contact the Benefits Department. The employee will submit an inquiry that the premium for their Long Term Care coverage will be direct billed to them from Unum, the provider for Long Term Care Insurance.