Other Core Benefit Programs

 

Your portion of premiums for health, dental and/or vision 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 money deducted from your paycheck for taxes means more take-home pay for you.

Here are some facts you need to know about Tax Saver:

   
Your salary-related benefits, such as PERF, the 403(b) Retirement Annuity Plan, 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 within 31 days of your initial hiring into a full-time, benefits-eligible position 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 conducted each spring, with an effective date of 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:
   
 

Some common qualifying events are:

Death
Birth
Adoption
Marriage
Divorce
Change in employment for employee or his/her spouse that constitutes a change in insurance coverage availability
 
(This list represents some of the most common qualifying events, but is not intended as a complete list of all possible qualifying events.)

 

 

Other factors that may change your status:

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.  Dependent Care Flexible Spending Accounts are not eligible under COBRA.
   
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. More information regarding making changes to your Flexible Benefits Plan elections is available via the Ivy Tech Employee Benefits website at: Flexible Benefit Plan Election Changes
   

 

If you experience one of these qualifying events and want to make a change to your health, dental and/or vision 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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