Faculty Salaries and Benefits

Initial salary designations for faculty are negotiated between the individual being considered for employment and the dean. The provost, who is the chancellor’s designee for hiring of faculty, must approve the salary.

Salary negotiations are dependent upon salary ranges and the amount budgeted for the position. Different schools and colleges use salary ranges based on their associated professional societies.

Salary checks for Winston-Salem State University employees are processed through the state government’s Central Payroll Center in Raleigh. Checks are deposited directly into employees’ checking accounts on the morning of the last business day of the month, and the check stubs are distributed through the campus mail. New faculty must anticipate at least a 30-day period for paperwork to be processed and for placement on the payroll. The first check will be mailed from Central Payroll in Raleigh. Thereafter, payroll checks will be directly deposited into checking accounts.

All full-time faculty are paid in twelve monthly installments, with the contract year beginning July 1^st. Non- returning faculty will receive their final checks the last business day in June. They should return their July 31^st checks to the university Payroll Office, if received.

Adjunct salaries are paid four times during the semester: in the middle of September, October, November, and December during the fall and in the middle of February, March, April, and May for the spring semester. Adjunct faculty members do not receive benefits.

Payments for summer school teaching are made in the middle of the month, with payment dates specified in the contract. Contact the Summer School Office for more information about these contracts.

For more information, contact Human Resources.

The university does not make advances against anticipated salaries.

Federal and state income tax is withheld on the basis of the information furnished to Human Resources on United States Treasury Department Form W-4. Employees are responsible for notifying the Human Resources Office of any changes in withholding exemptions. Form W-2, showing income tax withheld for the previous year, is distributed to employees near the end of January.

Social Security deductions are made according to current federal law. Deductions are also made for the retirement program chosen by the employee. See the section entitled, “Retirement Plan,” below.

In addition to mandatory deductions, employees may request that automatic deductions be made for:

• health insurance premiums;
• NC Flex pretax plans;
• supplemental tax-sheltered retirement savings plans;
• purchase of U. Savings Bonds through the payroll savings plan;
• the North Carolina National College Savings Program (pre-tax);
• deposits in the NC State Employees’ Credit Union;
• automatic repayment of loans made by the NC State Employees’ Credit Union;
• contributions to certain charities, including the State Employees Combined Campaign, the Arts Council, and the University Annual Fund;
• membership in the State Employees’ Association of North Carolina (SEANC); and
• parking fees

Many of the programs mentioned here are described below. For more information, contact Human Resources.

Choice between TSERS and ORP Faculty may choose between

• North Carolina Teachers' and State Employees' Retirement System (TSERS), a defined benefit plan, and
• UNC Optional Retirement Program (ORP), a defined contribution

New faculty must choose between TSERS and ORP within 60 days of the date of hire, and this choice cannot be changed; it is irrevocable. Failure to select either TSERS or ORP within 60 days will result in automatic enrollment in TSERS.

For more information, see Choosing a Retirement Plan (January 2007) on the web site for the Optional Retirement Program, University of North Carolina. This booklet discusses the two retirement plans and their differences.

The Teachers’ and State Employees’ Retirement System is a defined benefit plan. There is no investment risk for the individual since the state takes on the risk and guarantees the retirement benefit. Its benefit is not

based on the amount the employee or the state contributes. Rather, the yearly retirement benefit is a product of these numbers:

• The average salary for the four highest-paid years in a row;
• The number of years of creditable service; and
• A number determined by the retirement system, currently .0182.

For detailed information, see Your Retirement Benefits: Teachers’ and State Employees’ Retirement System, on the web site of the Office of the State Treasurer.

The Optional Retirement Plan is a defined contribution plan. The individual and university contribute funds. The individual selects the investment vehicle(s) for the contributions and assumes the investment risk for the retirement plan. The retirement benefits are based on performance of the investments and on the payment option chosen.

Participants have a choice of four UNC ORP carriers: AIG VALIC, Fidelity, Lincoln, or TIAA-CREF. The ORP web site contains further information about these plans.

This table from the booklet “Choosing a Retirement Plan” compares the plans. See the booklet on the ORP web site.

Financial experts recommend supplemental savings to provide extra income in retirement. Employees of the University of North Carolina may choose from plans authorized by Sections 403(b), 457(b), and 401(k) of the Internal Revenue Code.

The supplemental retirement plans include both pre-tax and Roth after-tax contribution options, which may change from time to time. The funds invested and the profits from the pre-tax accounts are not taxed until withdrawal.

Eligibility requirements vary considerably, and currently allow some participation by any employee who pays FICA. The plans have restrictions concerning minimum and maximum amounts that may be invested, transfers of funds to different accounts, withdrawal, and distribution of funds. There may be penalties if the participant withdraws money from these plans before the age of 59 ½.

Since these plans may change, faculty who wish to sign up should contact the Human Resources Office. The web site for The University of North Carolina General Administration – Supplemental Retirement contains information these plans, and links to the plan web sites. A comparison of the plans can be found at a Plan Features web page.

Full-time tenured faculty members in the University of North Carolina system may be able to finish their careers by working half-time for half of their regular pay, for a fixed period. This arrangement depends on the approval of the faculty member’s university and department, and there are certain age and service requirements. The university is required to notify eligible faculty members about this program. During phased retirement, faculty members must give up tenure but will retain rank and responsibilities. Faculty cannot hold administrative positions during phased retirement.

The web site for the University of North Carolina Phased Retirement Program contains statewide templates for the program; universities draw up institutional guidelines based on their campus needs. See the Appendix for documents specific to Winston-Salem State University: a template for a recent Phased Retirement Notification Letter, the Program Summary, the Application and Reemployment Agreement, the General Release Form, and Phased Retirement Benefits.