Pre-Tax Selection for 2014 Plan Year

Pre-Tax Selection for 2014 Plan Year

Requests to Change Pre-Tax Selection for 2014 NYSHIP Plan Year due by November 30, 2013

If you wish to change your PTCP selection for 2014, complete and file a NYS Health Insurance Transaction Form (PS-404) with your campus benefits administrator by November 30, 2013.  No action is required to keep your current status. 
Under the Pre-Tax Contribution Program (PTCP), your share of the health insurance premium is deducted from wages before taxes are withheld, which may lower your taxes.  You were automatically enrolled in PTCP when you enrolled in the NYS Health Insurance Program (NYSHIP), unless you declined.  Your paycheck shows whether or not you are enrolled in PTCP:
  • If you are enrolled in PTCP, your paycheck stub shows Regular Before-Tax Health in the Before-Tax Deductions section.
  • If you are NOT enrolled in PTCP, your paycheck stub shows Regular After-Tax Health in the After-Tax Deductions section.  Your health insurance premium is deducted from your wages after taxes are withheld.

Under Internal Revenue Service (IRS) rules, if you are enrolled in PTCP, you may change your health insurance deduction during the tax year only after one of the following PTCP-qualifying events:

  • Change in employee's marital status
  • Change in employee's number of dependents
  • Change in employment status of employee, spouse or dependent that affects eligibility
  • Dependent satisfies or ceases to satisfy eligibility requirements
  • Change in place of residence or worksite of the employee, spouse, or dependent
  • Change in coverage under other employer's plan
  • COBRA events
  • Judgment, decree, or order
  • Medicare or Medicaid eligibility
  • Leaves of absence
  • HIPAA special enrollment rights

Changes in coverage due to these status changes must be consistent with the change in your family or employment.  If you make a change in coverage not related to a qualifying event, your PTCP insurance deduction will not change.  Changes in coverage because of these qualifying events must be made within 30 days of the event (or within the waiting period if newly eligible), and delays may be expensive.

Note:  A change in coverage is treated differently than a change in your pre-tax election.  For example, if your only covered dependent became ineligible for coverage in June and notice of this qualifying event was not provided to your campus benefits administrator until August (i.e., not within 30 days), the dependent will be removed retroactive to the date in June when he or she first became ineligible for benefits.  Deductions will be changed to Individual on a current basis (i.e., as of August) and no refund will be issued.