Paying for Coverage

You are required to pay a portion of the cost of all voluntary benefits except basic life insurance which is provided to you at no cost.

• Employee premiums are collected through payroll deduction to pay for that pay period’s coverage.
• Missed premiums are collected on your next available pay OR you will be invoiced for the unpaid amount.
• Failure to pay your premiums could result in the termination of coverage and/or being sent to collections for any unpaid amount.

Pre-paying for benefits

If you are paid over less than a full calendar year you will need to ‘Pre-Pay’ your benefit premiums for your off-contract period when you do not receive pay.  Premiums for medical, dental, vision, life insurance and flexible spending accounts need to be pre-paid.

Your eligibility for benefits ends when your employment in a regular benefit eligible position ends (resignation, retirement, etc). Any “pre-payments” collected are refunded.

How pre-withholding works

Starting in early January and continuing through mid-May (10 pay periods) we collect 1.7 times the regular benefit premium amount. This additional premium pays for your benefits when you’re “off contract” (7 pay periods) and not receiving pay. When you’re back “on-contract” in the fall the regular premium amount for your benefits will be deducted until the end of the year (9 pay periods).

The Pre-payment percentage is 70%. For example, if your regular deduction amount is $100, your pre-payment amount would be $70.00 making your total deduction $170.00 during the pre-payment period.

“Pre-payment” Pay Dates

Still have questions??

Contact the Benefits Team at nauhrbenefits@nau.edu or call (928) 523-2223.