Benefit Calculations       Additional Benefit Information (HR website)

The following examples show the calculations for the various types of benefit coverage deductions shown on your earnings statement.   When attempting to calculate the cost of your benefits, remember that PSA (Benefit Contribution) and PSS (Benefit Subsidy) are "negative deductions" or positive additions that off-set the amount deducted from your paycheck for medical, dental, vision, administrative fee, and basic life insurance costs.  Currently for full-time employees the net amount of the cost to the employee is zero, as in the first two examples below.

Full-Time Employee (Coverage for Employee, Spouse and Children)

Full-Time Employee (Coverage for Employee Only)

Optional Benefits  (Out-of-Pocket Expenses)

Full-Time Employee (Medical Opt-Out)

Part-Time Classified Employee (with Full-Time Insurance Benefits for Family)

Part-Time Classified Employee (with Part-Time Insurance Benefits for Employee)

Contribution Chart (for Part-Time Employees)

Imputed Value Tax For Domestic Partner Coverage

Triple Deduction (For 9 Month Academic Year Employees)

1.  Full-Time (Coverage for Employee, Spouse and Children)

Negative Deduction Amount:  -531.97 + -656.74 =   - $1188.71

Actual Benefit Cost to University: 1,064.79 + 100.92 +7.08 +14.82 +1.10 =  + $1188.71

2.  Full-Time Employee (Coverage for Employee only)

Deduction Code	Description	Amount
PSA	Contribution	-387.14
PSS	Subsidy	-480.91
PMB	Medical	777.30
PDT	Dental	73.66
PPA	Admin Fee	5.17
PVP	Vision	10.82
CL1	PEBB Basic Life $5,000	1.10
Total Cost to Employee		$ 0.00

Negative Deduction Amount:  -387.14 + -480.91 =  - $ 868.05

Actual Benefit Cost to University: 777.30 + 73.66 +5.17 +10.822 +1.10 =  $ 868.05

3.  Optional Benefits

Deduction Code	Description
CL2	PEBB Life up to $45K Pre tax
CL3	PEBB Life $60K-355K Post tax
L02	PEBB Spouse/Ptr Life Post tax
L03	PEBB Dependent Life Insurance
LAE	PEBB AD&D Ins, Employee
LAF	PEBB AD& D Ins, Empl/Family
LCE	Long Term Care, Employee
LCS	Long Term Care, Spouse/Ptnr
LTD	PEBB Long Term Disability
LST	PEBB Short-Term Disability
PXM	PEBB Medical Flex Spending
PXS	Flex Spending/Dependent Care

The optional benefits listed above are not covered by the PEBB medical/dental plan and are an "out-of-pocket" cost to an employee.  This is a partial listing of the many optional benefits available.

4..  Full-Time  (Medical Opt Out)

In this example, the employee has another group medical coverage and has elected to "opt out" of PEBB medical coverage in order to receive "cash back" payments each month.  An employee may waive medical coverage, but must be enrolled in a PEBB dental plan and basic life insurance.

For those who "opt out," the contribution amount is approximately 60% of $387.14.  The medical plan opt out deduction of $154.00 reduces the actual contribution to $233.14.

5.  Part-Time Classified Employee (with Full-Time Insurance Benefits-Family)

In this example, the employee has opted to pay for the more expensive full-time insurance plan benefits for family.  When deriving the monthly out-of-pocket insurance expense for a part-time employee, it is necessary to compute the variable contribution  or PSA contribution amount which is based on hours worked and type of coverage - i.e. employee only, employee and spouse, etc. 

Pro-rated Contribution Calculation:   (See Contribution Chart below)
150 hrs/160 hrs X $1174.79 (full contribution amount) =  - $1101.37  

Out-of-Pocket Expense: The employee had $87.34 in pre-tax benefit costs over the PSA contribution amount.  The amount of the out-of-pocket costs will vary for part-time employees whose hours fluctuate each month.

6.  Part-Time Classified Employee (with Part-Time Insurance Benefits-Employee)

In this example, the part-time employee has chosen the less expensive part-time insurance plan, rather than the full-time insurance plan for himself.   When deriving the monthly out-of-pocket insurance expense for a part-time classified employee, it is necessary to compute the contribution amount or PSA contribution amount which is base on hours worked and type of coverage - i.e. employee only, employee and spouse, etc.

Pro-rated Contribution Calculation:   (See Contribution Chart below)
95 hrs/160 hrs X $854.14 (full contribution amount) =  - $507.15

Total Negative Deduction Amount: - $706.41 (Contribution & Subsidy)

Actual Benefit Cost to University: $ 631.45 + 53.00 +4.11 +1.10 = $ 689.66

Out-of-Pocket Expense:  In the example above, there was no out-of-pocket expense.  However, out-of-pocket costs will vary for part-time employees whose hours fluctuate each month.

PEBB Cash Back Cap:  This is a remaining balance amount, after the benefit costs are deducted from the contribution amount.    The employee is not entitled to this money and it is returned to PEBB.  ($706.41 - 507.15 = $16.75)

7.  Contribution Chart (for Part-Time Employees)

** The "Buy Down Subsidy" only applies to those with the lower cost part-time insurance plan.  There is no subsidy for part-time employees who chose the full-time insurance plan. (As shown in example 5 above)

8.  Imputed Value Tax For Domestic Partner Coverage

The Payroll Office adds the "imputed value", cost of the benefit coverage for a domestic partner or domestic partner's children to to the employee's monthly taxable wages, and then calculates and withholds the taxes.  The "imputed value" is considered a taxable fringe benefit by the Internal Revenue Service (IRS).  The amount added to gross earnings is listed in the "earnings section" of your earnings statement with the code of FDP (Fringe Domestic Partner). 

The example below shows the increased amount of Federal, State, Social Security, and Medicare taxes withheld when a domestic partner is covered by the employee's insurance plan. In this case, the imputed value of $537.21 consists of $501.54 full-time medical plan and $35.67 full-time dental plan.

Note: The amount withheld for Federal and State Taxes is based on requested W-4 withholding amounts. In the example above, federal and state tax withholding is based on Single with One allowance on the W-4.

* Remember with FDP, the imputed value of $537.21 is added to the taxable gross for tax withholding purposes. Use the salary amount of $3,515.39 to subtract the federal, state, social security, medicare, SAIF and other deductions to arrive at the net pay of $2,193.48.

You may visit the OHR website for more information on the domestic partner coverage http://hr.uoregon.edu/benefits/domestic.html

9.  Triple Deduction (For 9-Month Academic Year Employees)

Each year in May, the Payroll Office processes triple benefit deductions for benefit eligible academic year employees who are not resigning or retiring in May or June.  The triple deduction process adds two extra premiums to the normal deductions in the month of May, to cover benefits for June, August, and September.  The normal deductions in June cover July benefits. 

The triple deduction process ensures that there is continuous coverage in the summer for the group of employees.  In May, the additional out-of-pocket benefits expenses paid by employees are also tripled. Except, disability insurance, fixed amount of tax deferred investments and dependant day care and medical flexible spending accounts are NOT tripled in May. These deductions are only taken in the months when employees receive pay.

Employees will also see the "TAY" deduction code, "Academic Year Triple Contribution" on the employer side of the monthly earnings statements, which the contributions are collected to pay for the additional two months of benefit coverage for the summer.

In May, employees will see a triple negative amount of PSS "subsidy" and a double negative contribution of "TAY", deduction codes on their earnings statements.