Resources, Policies & Forms

Nine Month Faculty Annualized Pay Option Program Guidelines

For the 2025-2026 Academic Year

Open to all faculty members on a nine-month academic year appointment, the Nine-Month Faculty Annualized Pay Option Program is an optional program designed as a savings method to help bridge the gap between the nine-month work year and the desire to have twelve months of income.   The program will hold, in the form of an after-tax deduction, a portion of a nine-month faculty member鈥檚 after-tax income and distribute it to them in six equal installments during the summer months. 

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Program Description

  • A calculated 鈥渟et-aside deduction鈥� will be deducted from 18 paychecks from September through the spring semester.  For the 2025-2026 academic year the deductions will begin on the 9/05/2025 paycheck and will continue through the 5/01/2026 paycheck.
  • The total amount of the set-aside deductions will be refunded in 6 equal payments during the summer of the following year providing income even if the faculty member has no summer appointments.
  • Faculty members will decide what amount they want each summer 2026 payment to be and that amount will determine what the set-aside deduction will need to be.  A calculator is provided for that purpose.
  • Participation is voluntary. 
  • The program facilitates financial planning for new faculty. 

  • Faculty members who want to participate in this program will manage the enroll process themselves in Oracle.

  • Automatic renewal from year to year is not available.  Faculty members wishing to continue enrollment in this program in subsequent years will need to enroll themselves each year during the open enrollment process.

Nine Month Faculty Annualized Pay Option Program Enrollment Process

Nine-month faculty members on an appointed position may enroll in the voluntary, non-interest bearing program during the Annual Open Enrollment Period, which for the 2025-2026 academic year will be from July 1, 2025 through August 28, 2025.  

If you are interested in participating, you may access the program set-aside deduction calculator in Oracle and then facilitate the enrollment directly.  

Who may participate? 

Faculty members on nine-month appointments who expect to return in the fall may participate in the program. Adjunct faculty members are not eligible to participate.

What are the parameters surrounding the program?

  1. Faculty members wanting to participate will manage the enrollment process themselves in Oracle during the open enrollment period. 

  2. Faculty members decide the dollar amount they want each of their 6 summer payments to be and then enter that amount into the set-aside deduction calculator in Oracle to derive the biweekly set-aside deduction amounts necessary to provide the summer payment amount desired.

  3. Once the set-aside deduction amount is determined the faculty member will access the enrollment process in Oracle and enter that deduction amount in the enrollment screen.

  4. The set-aside deduction amounts are effective for the 2025-2026 academic year and through summer 2025.  Participation in future years requires re-enrollment by the faculty member.

  5. Set-aside deductions for the 2025-2026 academic year will begin with the 9/05/2025 paycheck and will continue through the 5/01/2026 paycheck.

  6. Once enrolled and the open enrollment period has ended the set-aside deduction amount is fixed and cannot be changed.

  7. Participation will remain voluntary.

  8. Participants can opt-out during the year.  Re-enrollment in the program cannot occur until the next program open enrollment.  If a participant opts out, their account will be reconciled and paid in full in the first available pay period.

  9. If the participant subsequently elects to retire or leave 国产福利资源 at the end of the spring semester, their account will be reconciled and paid in full in the first available pay period rather than paid back over 6 summer pay periods.

  10. This program distributes summer pay over 6 paychecks鈥攖he last paycheck in May, two paychecks each in June and July, and the first paycheck in August.  Summer 2026 payments will occur on paychecks dated 5/29/26, 6/12/26, 6/26/26, 7/10/26, 7/24/26, and 8/07/26.

Common Questions

Can I enroll in the program at any time?

You can elect to participate in the program only during the open enrollment period.  

Can I opt out of the program mid-year? 

Yes, participants who decide during the year that they wish to discontinue participation may cancel their enrollment by contacting the Payroll Department in writing or by email at UCO_Payroll_Processing@usf.edu.  Those who leave the program for any reason may not re-enroll until the next program open enrollment period.

What happens if I opt out of the program or leave 国产福利资源 at or before the end of the academic year? 

Participants who opt out of the program or terminate employment at or before the end of the academic year will be paid in full for the amount of deductions that had been collected to that point.  Payment will be made in the next regular paycheck.  

What if I am currently enrolled in the existing program?  Will my enrollment be automatic for the 2025-2026 academic year and summer 2026? 

No, there is no more automatic re-enrollment from year to year.  Changes to how this program is administered are necessary to accommodate functionality available in the Oracle Cloud HCM system.  Those wishing to continue in the program in subsequent years will need to enroll themselves each year.

Can I have someone calculate for me the set-aside amount I need to result in a balanced net pay over the calendar year, as was done in the previous program? 

No, such functionality does not exist in the Oracle environment.  Participants only need to decide what amount they want their summer 2026 payments from this program to be, and from that the set-aside deduction amount is determined via the calculator.

Will the set-aside deductions be reduced in the spring to accommodate the doubling of insurance deductions, as they were in the previous program?

No, the set-aside deductions will be the same for the entire time the deductions occur.  

Can I have my benefit deductions taken from my summer payments rather than double-deducted during the spring? 

No, the Division of State Group Insurance requires that nine-month faculty members pay their insurance premiums for coverage through September prior to the end of the academic year. Double deductions will remain in effect from February to May.

How will this program impact me if I have a summer appointment? 

This program is independent of any summer appointments you may have.  Summer appointments will not impact the distributions that you will receive from this program during the summer months; those distributions will be made as normal and will be added to the net pay you receive from any summer appointments.  The distributions will not be taxed, as they are the return of previous after-tax deductions.  Wages earned on summer appointments will be taxed as usual.

Will I earn interest on the deferred money? 

Participants will not be able to collect interest on the funds withheld through this program. This program is designed as a savings method to help manage cash flow for nine-month faculty over the summer months. However, many financial institutions, including the 国产福利资源 Federal Credit Union, can establish a similar program that provides an interest-bearing solution to employees.

Is this the only way for a nine-month faculty member to save money for the summer months?

No, you can update your direct deposit record to have your paychecks split among as many as five bank or credit union accounts. You can choose to have an amount direct deposited into an account you could use for setting aside funds to be used in the summer.  This option would also allow you to adjust as needed the amounts you set aside each paycheck, an option which is not available in the Annualized Pay Option Program.

How will this impact my taxes? 

Participation in this program will have no impact on your taxes because the set-aside deduction is an after-tax transaction.

Will the six equal installments that I receive during the summer months be taxed when paid to me?

No, the six installments are the return of the after-tax set-aside deductions taken during the nine month academic year. 

Who can I contact for more information on the program?  

You can contact the Payroll Department by email at UCO_Payroll_Processing@usf.edu.