Pre-Tax Premium Payment Plan

A participant in the Pre-Tax Premium Payment Plan has his or her compensation reduced by an amount equal to his or her share of the cost of the health and/or dental plan. This means that a participant pays this cost with pre-tax dollars. The College then pays this amount to the insurance company. Because the participant pays no state, federal, or social security taxes on these amounts, his or her take home pay is greater than it otherwise would have been if the cost of coverage had been paid with after-tax dollars.

Employees who prefer to pay their share of the costs on an after-tax basis must notify the Benefits Office in writing either when they first become eligible, or during the last 30 days of the calendar year. Those who elect to pay their health or dental plan premiums on an after-tax basis cannot reverse that decision until the next open enrollment period.

Similarly, employees participating in the Pre-Tax Premium Payment Plan must continue paying their premiums on a pre-tax basis for the rest of the calendar year, unless they experience a change in family status or other allowable change (see Benefit Changes Permitted in Addition to Changes Permitted at Open Enrollment).

The Pre-Tax Premium Payment Plan does not apply to health/dental contributions for a same-sex domestic partner or the partner’s dependents, unless the partner qualifies as the employee’s dependent for federal income tax purposes.