Employees' share of basic life and health insurance premiums may be deducted from their paychecks on a pre-tax basis, and may change the tax status of their premium deductions during Annual Enrollment or upon a qualifying event.
(1) Health Care Spending Account Program. Active State Employees who work at least 18.75 hours in a 37.5 hour work week or 20 hours in a 40-hour work week and are eligible for Health Coverage may arrange to pay for their out-of-pocket health care expenses on a pre-tax basis through the Commission's Health Care Spending Account program. State Employees pay a specified sum determined by the Commission by payroll deduction for non-covered health-related expenses. The Commission and the vendor(s) administering pre-tax options for Commission Employees establish the procedures, terms and conditions consistent with Internal Revenue Code rules. Such rules require that any unused funds in a participant's account at the plan's year end be forfeited.
(2) Dependent Care Assistance Program. Active State Employees who have employment-related dependent care expenses for Dependent children who are younger than 13 years old or are younger disabled adult dependents may pay for certain dependent care expenses through the Commission's Dependent Care Assistance Program. Participants elect an annual dollar amount per family to be taken as a payroll deduction, up to a maximum set by the Commission, to pay for qualified child and elder day care, after school programs, and day camp dependent care expenses.
This information provided by the Group Insurance Commission.