Faculty with a 10-month appointment who chose to receive twelve (12) paychecks (August through July) are considered to be on the salary deferral payment option. This means they have chosen to defer a portion of their monthly salary during the 10-month academic year (August to May) in order to receive pay during the months of June and July.
A portion equal to 15.83% for TIAA participants or 16.67% for non-TIAA faculty is deferred from the gross monthly pay each month via payroll deduction. The deferred amount appears during the months of August to May as a deduction marked "SAL DEF" in the right hand section of the pay stub.
The TIAA deduction is calculated on the gross pay (prior to deferral) for August through May. During June and July there is no TIAA withheld. This enables the TIAA contributions to be credited to the employee account over the 10-month contract period of August to May.
During the months of August through May, the gross pay is adjusted by the salary deferral amount prior to the calculation of taxes and deductions. Taxes on the deferred portion are withheld during the months of June and July when the salary deferral is paid back to the employee.