Tax Savings Plan
Regular staff and faculty scheduled to work for the university at least 20 hours per week for at least nine months each year may participate in the Tax Savings Plan. The Tax Savings Plan allows you to convert some of your taxable income to a similarly tax-free benefit. Staff and faculty are allowed the choice of making employee contributions to the following benefit plans on a pre-tax basis:
- Premium Conversion Plan
- Health Care Reimbursement Plan (Health Care FSA)
- Dependent Care Assistance Plan (Dependent Care FSA)
At the time you enroll into the dental and/or health care insurance plan you may enroll in the Premium Conversion Plan (before-tax) by completing the Premium Conversion Election Form. If you prefer to make your premium payments on an after-tax basis you must complete a Premium Conversion Waiver Form. Please refer to the health and the dental plan summary descriptions for eligibility, entry and effective dates.
By electing to deposit a portion of your salary to the Flexible Spending Accounts - FSA (Health Care Reimbursement Plan and/or Dependent Care Assistance Plan), you are redirecting your money into a tax-free account used to pay qualified expenses that formerly were paid with after-tax income.
The funds designated for the Tax Savings Plan are exempt from Federal, State, and Social Security taxes. You pay no tax on the pre-tax premiums and or funds deposited to the Flexible Spending Accounts - FSA. You will not owe taxes on the funds deposited in the Flexible Spending Accounts when they are paid to you.
Once a faculty or staff member ceases to be eligible for Premium Conversion and/or the Health Care Reimbursement Plan, he/she may continue to participate in Drury's plan as required by COBRA.
January 1 - December 31 (FSA)
June 1- May 31 (Premium)
|Entry Date :||An eligible employee can elect coverage under the plan the first of the month following the month in which he or she becomes an eligible employee. FSA benefits must be re-elected each plan year during open enrollment.|
|Mid-Year Election Change:||Benefit elections under the Plan are generally irrevocable for the plan year. However, certain life or employment events may allow you to make a consistent benefit change within 30 days after the event. Contact the Benefit Office for more information and a form to complete.|
|Exit Date:||Your plan eligibility ends on the last day of the month following you termination of employment with the university or, if earlier, on (i) the date you cease to be eligible, or (ii) termination of the plan.|