No. 156      Human Resource Services Division

  Date:   May 3, 2001
  To:   All Employees
  Subject:   Option For 10- and 11-Month Employees To Receive 12 Pay Warrants
  Department  and/or  Persons  Concerned:   Ten-Month Traditional or Eleven-Month Employees
  Due Date:   August 31, 2001
  Reference:   None
  Action  Requested:   Return attached form if interested in this option
  Attachment:   Form
 

Brief Explanation:

All monthly employees working a traditional 10-month work year or an 11-month work year may choose to have some of their earnings set aside by the district and paid to them in July and August 2002. To accomplish this, interested employees may authorize a deduction from monthly pay warrants received from September 2001 through June 2002. These deductions will be paid back to employees in July and/or August 2002. Employees will receive the same annual pay whether or not they select to be paid over a 12-month period. Those who select the 12-month option should note that the amount of each of their 12 pay warrants will be significantly lower than the amount they would have received under the 10-month or 11-month option.

If the 12-month option is selected, that selection is irrevocable during the school year for which it is selected. Changes to and from the 12-month option can only occur at the beginning of each school year. If you believe you will need access to your money at any time during the year, you should not choose this option. Instead, you could consider making a regular deduction to a bank or credit union account.

Ten-month employees who select the 12-month option for 2001-02 will receive their first pay warrant in September. During July and August of 2002, they will receive the deferred amount that was put aside September 2001 through June 2002.

Eleven-month employees who select the 12-month option for 2001-02 will have deductions taken from only the pay warrants received in September 2001 through June 2002. The entire deferred amount will be repaid in July 2002.

Please note that the money you have elected to defer for payment earns no interest for you while the district holds it. You should also be aware that you will pay income taxes in 2001 for income that will be unavailable to you until 2002.

Selecting a deduction amount that will result in 12 pay warrants of similar amounts is a complex process. The primary reason for this is that no deductions or taxes will be taken from the July and August 2002 warrants from which you are paying yourself back. All of your taxes and deductions will have been taken from your regular warrants.

Employees who selected this 12-month option for 2000-01 must also complete the form attached to this circular to receive 12 pay warrants for the 2001-02 school year.

Please do not ask the Payroll Unit to assist you in determining the amount you want deducted each month. If you need advice on this matter, contact your tax preparer or accountant.

If you want to select the 12-month option, please complete the attached form and return it to Payroll by August 31, 2001. No action is necessary if you want to receive 10 warrants for a traditional assignment or 11 warrants for an 11-month assignment.
 

Deberie L. Gomez
Deputy Administrative Officer


APPROVED:

Henry E. Hurley
Chief Administrative Officer