OPTION FOR 10- AND 11-MONTH EMPLOYEES TO
RECEIVE 12 PAY WARRANTS

Return attached form if interested in this option.

Attachment 1 - Form

Attachment 1 - 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 2003. To accomplish this, interested employees may authorize a deduction from monthly pay warrants received from September 2002 through June 2003. These deductions will be paid back to employees in July and/or August 2003. 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 2002-03 will receive their first pay warrant in September. During July and August of 2003, they will receive the deferred amount that was put aside September 2002 through June 2003.

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 2002 for income that will be unavailable to you until 2003.

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 2003 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 2001-2002 must also complete the form attached to this circular to receive 12 pay warrants for the 2002-2003 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, 2002. No action is necessary if you want to receive 10 warrants for a traditional assignment or 11 warrants for an 11-month assignment.