Penn State University has announced it will nix its proposal to charge its employees $100 for not submitting monthly health screenings and questionnaires, Inside Higher Ed reported.

The "Take Care of Your Health" plan, originally announced in July, was met with criticism and objection from employees for being invasive to privacy, among other complaints.

"We have decided to suspend the $100 per month surcharge so that people who are uncomfortable with any aspect of the survey will not feel as if they are being penalized," Penn State president Rodney Erickson said in a statement. "There is still a tremendous financial challenge that we must address in the coming year and beyond, but we also need to acknowledge the concerns of employees and seek their advice on how to overcome these fiscal roadblocks and still provide quality health care."

The plan originally required school employees to submit to monthly health screenings and to fill out questionnaires. Some of the questions, for women for example, pertained to whether they planned to become pregnant within the next year. Anyone who did not participate or submit the surveys would receive a $100 surcharge.

Other employers, and some colleges, have used monetary incentives in their healthcare program, but very few have used money as a penalty. Jonathan Levin, a Stanford professor of economics, previously told Inside Higher Ed many businesses offered incentives for employees who submitted such monthly reports.

Matthew Woessner, associate professor of political science and public policy at Penn State's Harrisburg campus, was one of the faculty members at the head of the opposition to the plan. He said he was encouraged to see the administration pull back on the changes.

Still in effect however, are charges for Penn State employees' spouses and for those who smoke. If an employee is a regular smoker, they will be charged an extra $75 per month. For any employee whose spouse or domestic partner uses the school's insurance policy, while also being eligible for coverage through their job, will receive a $100 monthly surcharge.

The school said it was leaving those charges in because of "financial constraints" surrounding the healthcare overhaul. Penn State is expected to spend $217 million on healthcare benefits in the 2013-2014 academic year, an increase of 13 percent from the previous year.