Prepayment employee version_2_3_2012

HB 720
Prepayment of Teachers

Nash-Rocky Mount Public School System

Who will this Affect?
This legislation will affect all 10 month employees
paid on salary including teachers, support staff, most
assistant principals, all child nutrition staff, and
teacher assistants.

This will not affect employees who work 11 or 12
months.


What we know

House Bill 720 eliminated the prepayment of
salary for teachers, effective July 1, 2012 (will be
implemented with the beginning of the 2012-2013
school year). The elimination of pre-payment of
teacher’s salaries does the following:


1.Working less than a full month and being paid a
full month is prohibited, as this constitutes
prepayment. Normally, our 10 month employees
are paid a full month’s salary in August, the two
weeks they worked in August and the two weeks
they will work in September. Employees will only
be paid for time worked and not time that will be
worked.


2. Teachers and all 10 month employees will still
be paid for all 10 months of employment. The
amount you are paid is NOT changing. The
only thing changing is WHEN you are paid

3. All eligible 10 month employees can still
request and be allowed to have their salaries
spread out over 12 months.


4. The only compliant option according to the
current law is to provide partial payment at the
end of August(for days worked in August only)
and full payment at the end of September (for
all days worked in September). We are
waiting for direction from the Department of
Public Instruction before deciding on pay
dates.


5. Any or all of this is subject to change depending
on decisions made in Raleigh. It may be as late as
May 2012 before we know more. As stated the law
to prepay has been repealed , but as it stands now
adjustments to that law are required in order to
facilitate change.
6. This is going to be a major adjustment for all 10
month employees. At this point, there are many
unanswered questions and we will keep you
informed as we learn more.


What about the deduction for
hospital insurance?
Your September premium normally is deducted from
your August check. We will begin deducting your
check for this premium this February, March
, April, and May of 2012 . You may choose not to
have this deduction by completing the
Hospitalization Waiver Form, but will be expected to
provide payment by August 31, 2012 for any owed
premiums.

Listed below is the amount which will be deducted
from your check depending on the type of coverage.
The deduction will be in your Feb – May, 2012 check.
70/30 Basic 80/20 Standard
Plan Plan

Employee Only 5.41
Employee/Children 47.03 67.95

Employee/Spouse 121.18 149.51

Employee/Family 129.07 158.19


Wellington Benefit (cafeteria
plan) deductions
This year the deductions will be collected in 9
months for all 10 & 11 month employees.
Deductions for these benefits will not come out of
your June, July, or August check. These months are
skipped so you do not need to be concerned about
these deductions.


What about deductions for
mortgage payments, loans, and
voluntary retirement, child
support, and student loans?
Employees will need to make plans with their
lender or annuity provider to cover the month of
August 2012. These deductions will not be paid on
behalf of the employee.


Prepayment employee version_2_3_2012

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