III. 304 - Tax Savings Plan (TSP)
Drury provides a Tax Savings Plan (TSP) program that allows staff members to have pre-tax dollars deducted from their salaries to pay for eligible expenses. The pre-tax contributions made to the TSP can be used to pay for Drury's Health Insurance premium, Dental Insurance premium, predictable non-reimbursed health care expenses, and dependent care expenses during the plan year. Through the TSP program, you can reduce your taxable income without reducing your real income, so that you can keep more of the money you earn.
Regular, full-time and part-time (scheduled to work a minimum of 20 hours per week) staff members are eligible to participate in the Tax Savings Plan program.
Participation in Drury's Healthcare premium, Dental Insurance premium, Health Care and/or Dependent Care Reimbursement TSP is optional and determined on an annual basis for the plan year. To participate, staff members must enroll for each plan year. Staff members determine how much to contribute to the account, up to a specified maximum, based on anticipated expenses during the plan year. Staff members may contribute up to a maximum each year for eligible Health Care reimbursable expenses. The annual maximum contribution for eligible Dependent Care reimbursable expenses is typically up to $5,000. For specific funding information and limitations, please check with the Human Resources Department or website. Contributions are directed to the staff member's account through salary reduction on a pre-tax basis. This tax-free money is then available for reimbursement of out-of-pocket expenses. All participation amounts that remain in the account at the end of the plan year are forfeited. It is important that staff members take care not to over-fund their reimbursable account.
The Tax Savings Plan will cease the last day of the month during which employment termination occurs. Benefit continuation may be provided as described in Section 302 - Benefit Continuation (COBRA). The plan is subject to modification or cancellation by the university at any time in its discretion.
Details of the Tax Savings Plan program are described in the Summary Plan Description (SPD). Contact the Human Resources Department or website for more information on the Flexible Spending Account program and to obtain enrollment and reimbursement forms as well as examples of reimbursable and non-reimbursable expenses.