Benefits Enrollment - Paying for Your Benefits

The University of Michigan makes a sizeable investment in your benefits by paying a significant portion of the cost. You pay any balance through automatic deductions from your pay. Your benefit costs are calculated on the first day of each month based on your employment status, plan and coverage level.

Each benefit plan has its own rate structure. The cost of each benefit for which you are eligible can be viewed on Self Service > Benefits. In addition, each plan section on this website includes rate information that will help you determine the amount of your deductions. See the Benefits Plan Rates page for links to benefit plan rates. Contact the HR/Payroll Service Center if you have any question about rates.

You are responsible for making sure your U-M paycheck is sufficient to cover the deductions for the benefits and coverage level you elect. You can view your appointment information, including your per pay period gross amount, on Self Service > Employment Information > View Appointment available through Wolverine Access.

"MHealthy Programs" and "MHealthy Rewards" on your Paycheck
The line items "MHealthy Programs" and "MHealthy Rewards" listed under the EMPLOYER PAID BENEFITS SECTION on your paycheck are amounts being contributed by the university (not deductions from your pay) each pay period to provide programs and incentives in areas such as physical activity, weight control and smoking cessation geared toward improving health and reducing health risks, as well as to provide faculty and staff assistance programs. For more information on MHealthy health and well-being services, go to mhealthy.umich.edu.

Changes to Your Benefits

If changes to your U-M benefits occur during the month, cost adjustments are made the following month. For example, if you add a dependent to your coverage on the second day of the month or later, your benefit cost increase takes effect the following month. Likewise, if you remove a dependent from your coverage on the second day of the month or later, the cost decrease takes effect the following month.

Payroll Deductions for Faculty and Staff

Certain benefits are paid for by payroll deduction from your salary on a pre-tax basis (before taxes are calculated). The benefits plans with pre-tax deductions are:

  • Health Plan
  • Dental Plan
  • Vision Plan
  • Flexible Spending Account
  • Retirement Savings Plan (excluding Roth)

The plans with after-tax deductions are:

  • Legal Services Plan
  • Optional Group Term Life Insurance
  • Dependent Group Term Life Insurance
  • Long-Term Disability
  • Roth

Frequency of Deductions

If you are paid biweekly and you participate in U-M benefits plans, payroll deductions for plans for which you pay a premium will be taken from your first two paychecks each month. If there are three pay dates in a month, no benefits deductions will be taken from the third paycheck, except that Retirement Savings Plan contributions will be taken from all paychecks if you are enrolled in the plan.

If you are paid monthly, payroll deductions for U-M benefits will be taken from each monthly paycheck.

Retroactive Contributions

The timing of your elections and payroll cutoffs may result in a missed deduction. Please be aware that missed deductions for retroactive periods of coverage will be taken from your next available paycheck.

Other Qualified Adult Tax Information

Under federal tax law, group insurance and benefits provided to an other qualified adult (OQA) and his or her children generally will require taxation of the university contribution attributable to the OQA and the OQA's children. The tax on the imputed income will be deducted from the faculty or staff member's monthly or first and second biweekly paychecks of the month. For more information about the tax implications of covering an OQA on your U-M benefits, go to the Other Qualified Adult (OQA) section.

 

Limitations
The University of Michigan in its sole discretion may modify, amend, or terminate the benefits provided with respect to any individual receiving benefits, including active employees, retirees, and their dependents. Although the university has elected to provide these benefits this year, no individual has a vested right to any of the benefits provided. Nothing in these materials gives any individual the right to continued benefits beyond the time the university modifies, amends, or terminates the benefit. Anyone seeking or accepting any of the benefits provided will be deemed to have accepted the terms of the benefits programs and the university's right to modify, amend or terminate them.