2017 Section 125 for Eligible Classified Employees
Section 125
Section 125 of the Internal Revenue Code allows for establishment of individual non-taxable accounts to pay for expenses associated with certain types of health and dependent care expenses.
- MEDICAL INSURANCE PREMIUM ACCOUNT - expenses used to pay the group health insurance premiums not paid by employer (e.g. portion of premium that is deducted from your pay). Exception: The IRS will charge taxes on the portion paid by the college for domestic partner's coverage.
- HEALTH CARE EXPENSES ACCOUNT - expenses incurred by employee, spouse, or dependents that are not covered under a medical, dental or vision plan.
- DEPENDENT CARE EXPENSE ACCOUNT - expenses relating to dependent care that enable the employee to work.
The election choices you make for Section 125 cannot be changed during the year except in the following cases:
There is a change in your family status, including marriage, death, divorce, and the birth or adoption of a child.
Termination, commencement of employment; or, change in FTE status of employee or spouse/domestic partner.
If you do have one of the above qualifying events, please contact Human Resources to complete a revised Section 125 form.
Enrollment in Section 125 is offered to College employees on a calendar year basis for qualified health care and dependent care expenses incurred between January and December each plan year. Employees must re-enroll each plan year to participate in Section 125. Human Resources will facilitate an open enrollment process for Section 125 each year, typically during November.
Upon election of the Section 125 FSA, eligible expenses can be reimbursed by completing the Polestar Benefits, Inc Section 125 Request for Reimbursement form.
After completion, the form and supporting documents are mailed directly to Polestar Benefits, Inc for reimbursement.
Section 125 Employee Contribution:
Employees must voluntarily commit to contribute a minimum of $240.00 toward their Section 125 health care reimbursement account for the plan year. The maximum employee contribution is $2600.
Section 125 College Contribution (effective January 1, 2017):
Employees who participate in the health care reimbursement portion of Section 125 may be eligible to receive a contribution from the College toward the respective health care reimbursement account. The College's contribution for the plan year shall be based upon the employee's insurance enrollment tier, on January 1, 2017, as follows:
- Employee Only - $670*
- Employee Plus One - $1340*
- Full Family - $1715*
*pending contract ratification