Other Benefits

 

Your portion of premiums for medical and/or dental insurance coverage are made through payroll deductions. Through Tax Saver, these deductions are made before your federal, Social Security, state, and local taxes are calculated. These taxes are then computed on the smaller amount of pay, so the taxes are less. Less taxes mean a larger net paycheck for you.

Here are some facts you need to know about Tax Saver:
   
• Your salary-related benefits, such as PERF, TIAA/CREF, life insurance, and long-term disability will not change because of Tax Saver-these benefits continue to be based on your unreduced salary.
   
• Because the amount of your FICA (Social Security) tax is reduced through Tax Saver, your Social Security benefit may decrease slightly-usually only a few dollars per month. Therefore, this decrease may not be significant when compared to the tax dollars you save with Tax Saver.
   
• You may enroll in Tax Saver when initially hired or during the College-designated open enrollment period. Tax Saver benefits almost everyone, but certain employees near retirement may wish to consult a tax advisor before participating in the program.
   
• The annual open enrollment period for Tax Saver is effective July 1.
   
• Apart from the open enrollment period, while you are using Tax Saver you may change your elections during the year (including adding and removing dependents from coverage) only in certain limited instances or qualifying events as determined by IRS guidelines. Generally, the types of events which permit you to make election changes mid-year include the following:
   
  — Change in Status. You may stop or change your elections under the plan due to one of the following change in status events if the change is on account of and corresponds with a change of status that affects coverage or eligibility of you, your spouse, or your dependent:
— Change in your legal marital status;
— Change in the number of your dependents;
— Change in the employment status of you, your spouse, or dependent;
— Your dependent satisfying or ceasing to satisfy the dependent eligibility requirements under the Plan;
— Change in residence;
— Adoption assistance.
   
  — HIPAA Special Enrollment Rights. In the event a participant is entitled to a special enrollment under any group health plan, a change in your elections under the Flexible Benefits Plan would also be permitted.
   
  — COBRA Elections. In certain instances elections may be made as it relates to COBRA continuation coverage.
   
  — Other Permitted Changes. In addition, certain changes to your elections are permitted in the event of coverage or loss of coverage under Medicaid or Medicare, in the event of certain judgments, decrees and orders, in the event of certain changes in cost, coverage of benefits and/or the elimination or addition of benefit packages. Please see your plan summary for the Ivy Tech Flexible Benefits Plan for more information.
 
If you experience one of these qualifying events and want to make a change to your medical and/or dental coverage or Tax Saver status, you must notify your Human Resources Administrator in writing within 31 days of the occurrence of the event.
 
If you have any questions about the benefits of Tax Saver, ask your Human Resources Administrator.
 
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