Human Resources News

Effective in July 2021 the UW System modified its payroll practices for employees paid on a monthly basis by transitioning them to the existing biweekly payroll cycle. Prior to July 2021, employees paid on a monthly basis were paid to date for all days worked within a month. Generally, monthly paid employees were paid on the following first of each month, except for June, when employees were always paid June 30th (prior to the end of the fiscal year).

Employees paid biweekly receive a paycheck approximately two weeks after the end of the payroll period which typically results in 26 paychecks during any given fiscal year. With the transition from a monthly to a biweekly payroll cycle, for fiscal year 2022 employees will receive 25 paychecks instead of 26 because employees were paid for all days worked in June 2021 on the June 30, 2021 paycheck. This results in a reduction in earnings reported to the Wisconsin Retirement System (WRS) for fiscal year 2022.

Employees’ WRS reported earnings may be affected by the monthly to biweekly payroll practice change if:

• They are separating from service during one of the next three fiscal years (2022, 2023, 2024),
• Are including fiscal year 2022 as one of their highest years of earnings for WRS purposes, and
• Are eligible for the WRS formula benefit

To smooth the transition, UW System will allow for the acceleration of payment of wages for days worked up to June 30 prior to the end of the fiscal year for the last full fiscal year prior to the employee’s separation from service. This means wages will be paid in June for all days worked in June. As a result, employees final average earnings will not be negatively affected when determining their WRS benefit under the formula method calculation. Employees who retire after fiscal year 2024 will have regularly been receiving 26 paychecks per fiscal year for more than three years and their WRS reported earnings will not be affected.

Eligibility

Faculty, academic staff, and limited appointees who are vested in the WRS, are of minimum retirement age as of the date of their separation and meet all of the following conditions may apply for the Program:

• Had an active appointment and were paid on the monthly pay date of June 30, 2021;
• Separate service between June 15, 2022 and February 15, 2025;
• Perform compensable work between June 15 and June 30 in the fiscal year in which the WRS-Single Payroll Transition Program Application is being submitted; and
• Submit a completed WRS-Single Payroll Transition Program Application prior to May 1 of the year in which the payment of wages will be accelerated.

Frequently Asked Questions

Review the WRS-Single Payroll Transition Program Frequently Asked Questions for details on the program and application due date.

Application

Submit the following to your institution human resource representative by the due date for the fiscal year you plan to apply for the Program:

• Completed WRS-Single Payroll Transition Program Application,
• A copy of an official WRS Retirement Benefit Estimate that is dated within 12 months of your separation date (required). To request an estimate, if you do not have one, go to the Department of Employee Trust Funds (ETF) WRS Retirement Estimate Request web page and submit your request.

Every effort has been made to ensure this information is current and correct. Information on this page does not guarantee enrollment, benefits and/or the ability to make changes to your benefits.

Additional Resources

For information on the Wisconsin Retirement System (WRS) review the WRS web page.

For information on the Single Payroll Project review the Single Payroll web page.

Questions

For questions on the WRS-Single Payroll Transition Program contact your institution benefits contact.