Merit increase will not affect 2023 benefit premium rates

As merit increases take effect in July, it’s important to note that benefit rates are frozen in Benefitfocus. Employees’ coverage rates will not change during the 2023 calendar year if there are any changes that affect their salary, including merit increases.

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

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

Upcoming opportunity to review, increase other benefits

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