FAQ - Medical Insurance Deductions Adjustment Payment
There was a programming error in the UC Berkeley HR and Payroll systems that triggered a premature Medical Contribution Base (MCB) update for some campus employees. The MCB is used to determine the monthly medical insurance deduction and some employees' medical insurance deductions were over-withheld.
For more information about the MCB, please visit At Your Service.
The amount varies, but, on average, a cumulative amount of $630 was deducted erroneously from each affected employee between 2009 and 2012.
In total, approximately 1,300 people were affected by this error.
Employees who were affected were sent a letter on September 24, 2012, informing them that they were affected by this error. If you did not receive a letter, you were not affected.
An October 2009 update to UC Berkeley's 30+ year-old payroll system introduced a programming error that caused the system to calculate medical insurance deductions inappropriately.
UC Berkeley will issue a one-time payment to impacted employees for the amount that was taken erroneously plus an additional 7% of that amount.
This one-time payment will be issued to affected employees on October 18, 2012.
The payment will be issued by Payroll in the form of a special payment, separate from regular earnings. This payment will include the amount that was taken erroneously plus an additional 7% of that amount, less appropriate taxes and other withholdings.
If your Medical Contribution Base (MCB) needs to be adjusted in 2012, you will most likely see a decrease in your medical insurance deduction beginning on your October 1, 2012 paycheck.
Short-term, we have taken the necessary steps to fix the error, and we have put new monitoring processes in place to ensure that similar issues are identified and immediately addressed.
Long-term, UC Berkeley will transition away from the 30+ year-old HR and Payroll systems that made us vulnerable to this type of error. By 2014, UC Berkeley will replace the existing system with a new state-of-the-art HR and Payroll system called UCPath.
Any appropriate taxes and other withholdings will be applied to employee adjustment payments. Because the adjustment payments are received in 2012 and University employees pay taxes on a "cash" basis, the payments will be reported as 2012 income on 2012 W-2 forms which will be issued in January 2013.
If you have additional questions regarding the Medical Insurance Deductions Adjustment Payment, you can Request a Follow-Up, or call the UC Berkeley Benefits Helpdesk at (510) 664-4520.
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