Effective September 6, 2002 a voluntary, after tax, summer savings program is available to all HCEA represented employees, whether members of HCEA or not. The new voluntary program replaces the current mandatory summer savings program. If you choose to participate, 15.38% of each net pay will be deposited in an account at the bank of your choice. These deposits will accumulate during the school year to provide four even withdrawals/payments during the summer months generally equal to your biweekly pay during the school year. The change benefits you in that you will have a choice of whether or not to participate and you will earn the interest on the money set aside. If you choose not to participate, you will be paid your entire salary over ten months (no summer savings payments).

Other changes will be necessary to accommodate the transition to ten-month payment of salaries. You will be receiving more detailed instructions specific to you at your home address in July.

The amount set aside for summer savings is 15.38% of net pay and will be calculated as follows:

Net Take Home Pay (Gross Earnings less taxes and other deductions) $ 1,200.00

SUMMER SAVINGS DEPOSIT ( $1,200 X .1538) = $ (184.56)

Net pay after summer savings deposit $ 1,015.44

If you set aside $184.56 for all 22 pay periods ($184.56 X 22 pays = $4,060.32) and then divide this number by the four summer pays ($4,060.32/4=$1,015.08), you will have summer payments generally equal to your net pay during the school year.

NOTE: The summer payments will be equal to your biweekly pay during the school year only if you participate in the program for all pay periods and your earnings and deductions do not change during the year.

You may choose any financial institution. Money will be deposited each pay in your savings account, and in the summer, you will need to transfer money from your summer savings account to your checking account as needed. Should you decide to use HARCO CREDIT UNION as your financial institution, there are certain conveniences that may not be available at other banks. Harford County Public Schools has teamed with HARCO to provide the following benefits/ conveniences for you.

1. The interest rate will be equal to HAR-CO’s three month CD (share certificate) rate and will continue to be earned and posted at the calendar quarter-end using the published CD rate on the last day of the quarter
2. The "up to $10,000" will not change, meaning balances in excess of $10,000 will earn HAR-CO's Regular Savings interest rate.

Should you elect to use HARCO, you must complete a payroll summer savings deposit authorization card at one of their branch offices. Should you decide to use a financial institution other than HARCO, you would indicate the institution and account on a standard HCPS direct deposit form and indicate that 15.38% of each pay should be deposited in that account. If you do not sign up with HARCO or another financial institution of your choice, your entire salary will be paid to you from September through June. There will no summer pay unless you sign up.