Reminder: New salary tier for medical benefits in effect; no change on 2023 benefit premiums for current employees

As of July 1, 2023, the new salary tier for medical benefit premiums will be $50,250 (increased from $48,800). This means that new employees hired July 1 and after will be charged medical premiums based on whether their salary is above or below $50,250.

As merit increases take effect for current employees in July, it’s important to note that all benefit premium rates are frozen in Benefitfocus. Therefore, benefit deductions for current employees will not change for the remainder of the 2023 calendar year.

Any employees whose merit increase takes them above the $50,250 annual salary tier will not see an increase in premium deductions until January 2024.

Benefit deduction rates for Jan. 1-Dec. 31, 2023, are based on employee salaries as of Oct. 17, 2022.  

Opportunity to review, increase other benefits

As a reminder, annual merit increases allow an opportunity to review other benefits and consider making adjustments, for example, to voluntary retirement savings or health savings accounts. Increasing retirement contributions by as little as 1% can make a big difference on an employee’s retirement savings and current tax withholding. 

Pay increases also result in increased retirement contributions from the university. To make changes to voluntary retirement contributions, employees can log in to Fidelity or call 800-343-0860.

Information on health savings accounts can be found here.

Questions

Questions can be directed to Human Resources at 765-494-2222, toll-free at 877-725-0222 or via email at hr@purdue.edu.