Payroll Deduction Changes for Supplemental Retirement Programs
November 13, 2023
The Universities of Wisconsin have announced an upcoming change in the payroll deduction frequency for contributions made to the 403(b) Supplemental Retirement Program and the Wisconsin Deferred Compensation Program.
The payroll deduction frequency will be changing effective January 2024. Please see the message below for more detailed information on this change.
From the Universities of Wisconsin:
The payroll schedule for the UW 403(b) Supplemental Retirement Program (SRP) and Wisconsin Deferred Compensation (WDC) 457 Program will be changing effective January 2024.
Currently, contributions to the UW 403(b) SRP and the WDC 457 Program are processed on every paycheck (typically 26 paychecks a calendar year).
Starting in 2024, UW 403(b) SRP and WDC contributions will be processed on the first two paychecks of each month (24 paychecks during the calendar year).
This change is being made to align the UW 403(b) and WDC contribution deduction schedule with other benefit plan deductions.
Contribution Elections
Contributions set up as a flat dollar amount or percentage will continue to be processed at the elected amount on the first and second paycheck of each month.
For employees paid over 12 months, contributions will be processed on 24 paychecks (from the first and second paycheck of each month) instead of 26 paychecks.
For employees paid over 9 months, contributions will be processed on the 18 paychecks during the academic year (from the first and second paycheck of each month) and from any summer pay, if applicable.
You may want to review and/or change your contribution if you are trying to meet a specific dollar amount by the end of the year.
Example 1: Flat Dollar Contribution Amount
You want to contribute $12,000 for the year. $12,000 divided by 24 paychecks equals $500 per paycheck. Your flat dollar contribution amount is $500.
Example 2: Percentage Contribution Amount
You contribute 5% of your gross pay. Your gross pay is $1,500 per paycheck. 5% of $1,500 is $75. $75 multiplied by 24 paychecks is $1,800. Your total annual contributions will be $1,800.
Contribution Election Changes
You may change your 403(b) SRP and/or WDC contributions at any time.
For instructions on changing your 403(b) SRP contributions please see:
For instructions on changing your WDC contributions please see:
Payroll Deduction Schedules
The payroll deduction schedules show which deductions are taken on each paycheck. The payroll deduction schedules for 2023 and 2024 may be viewed below:
- Pay Dates 2023
(Deductions for the 403(b) SRP and the WDC are in group 3)
- Pay Dates 2024
(Deductions for the 403(b) SRP and the WDC are in group 2)
If you have any questions about the upcoming payroll deduction schedule changes, please contact the Benefits office that corresponds to your School, College, or Division.