W-2s, Retirement Contributions, Flex Spending News and More
HRS Compilation: Updates and Opportunities of Interest to Faculty and Staff
- By Rodman W. Cory
Important news about W-2s, flexible spending accounts, retirement contributions, and insurance costs:
Are You Ready to Receive Your 2014 W-2?
In order to avoid a significant delay in the reception of their W-2, faculty and staff should ensure that their address is correctly listed in PeopleSoft HR Self Service (easily accessible through the myUVM portal).
The University sends important information like W-2s to your HOME address in PeopleSoft, unless you have a MAIL address listed—in which case correspondence is sent to the MAIL address instead. For most faculty and staff, if you have a separate MAIL address, it should be your home mailing address.
There are no major changes to W-2s this year. UVM typically mails W-2s during the last week in January. W-2 questions? Drop an e-mail to firstname.lastname@example.org.
Check Your Flex Spending Account
If you completed paperwork to create a Flexible Spending Account for 2014, this would be the appropriate time to make sure that your account was set up as you intended. To do so, visit PeopleSoft HR (accessible through the myUVM portal), and go to self service > benefits > benefits information > flexible spending accounts. If an account was set up for you for 2014, you should see your annual pledge amount in the table. (You should also see a Before Tax Deduction that begins with the letters FSA on your paystub.) Have a concern? e-Mail HRSinfo@uvm.edu.
Faculty and Staff Insurance Cost Increases
As we reported last April, medical insurance premiums went up January 1, 2014 as a result of federal legislation within the Affordable Care Act. The amount of this increase is between 2.3 and 3.7%, depending on your particular plan. Keep in mind that cost increases are shared by the individual and the institution, so this represents a cost increase for UVM as well.
Also, be aware that wage and salary increases received in a given year do not typically affect the cost you pay for insurance until the following January 1. If the increase in your base pay last year was enough to move you into a new salary band, you will see an adjustment to the amount of your deductions beginning with your first paycheck in January. (For example, non-represented staff making $39,500 pay 10% of the cost of their medical insurance; those making $40,500 pay 12% of the cost.)
Save as Much as Possible for Retirement
The beginning of the new year is a perfect time to increase the amount of your contributions to your UVM Retirement Savings Account. If you already participate in the plan, you can change the amount of your contribution at any time by completing a new 403(b) Salary Reduction Form from the HRS website. Consider these important updates:
- The maximum personal contribution for 2014 is $17,500 ($52,000 maximum combined employer/employee contribution)
- The maximum catch-up contribution for those 50 and older is $5,500 and there is an additional $3,000 years-of-service catch-up available to those who have worked at UVM for 15 years or more
- The IRS limits the Total Annual Compensation that may be used to calculate contributions to $260,000 for 2014
Important Reminder: If you are age 50 or older and are wanting to make "catch-up" contributions, you MUST COMPLETE A NEW 403(b) Salary Reduction Form each calendar year. (Other retirement savings account forms are located on the HRS FORMS page.)
Want to open a Retirement Savings Account? Attend a Retirement Savings Account Information Session.
Questions? e-Mail HRSinfo@uvm.edu.