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Contract Resource Center

updated January 12, 2010

 


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Pre-Tax Programs

 

These Pre-Tax programs allow enrollees to pay for certain qualified expenses using pre-tax dollars. Although each program requires enrollees to set aside a set amount of their gross wages for dedicated expenses, the rules and regulations, enrollment periods, and eligible expenses are different for each program.  Learn about these options to determine if you can save money by participating in the pre-tax programs created under the PEF contract.

 

 
Health Care Spending Account (HCSA)

This pre-tax program allows they use of pre-tax dollars to pay for health related expenses that are not reimbursed by insurance.

Key Points:

  • Annual Enrollment Period (usually in the fall)

  • Over the Counter Medicines Included

  • Qualified Transportation Expenses Included

  • "Use it or Lose It" provision applies to any unused surplus

Contract Language (Note: Article 9 refers to this program and the Medical Flexible Spending Account)

 

 NYS-Ride

The Federal Stimulus Package Raised the monthly allowance for pre-tax transportation benefits from $120 to $230 per month.  This change takes effect March 1, 2009.  Check with NYS-Ride for full details.

 

The NYS-Ride program uses pre-tax dollars to pay for mass transit commuting expenses.  This program was implemented several years ago for employees working in New York City and was recently expanded to all NYS Employees.  Enrollees have wide flexibility in transit provider and type of ticket(s) purchased.

Key Points:

  • Employees can enroll at any time during the year

  • Program includes Debit Card Option

  • Benefit selection can change month to month

  • No "Use it or lose it" provision

Most recent payroll bulletin on NYS-Ride (issued 6/30/08)

Contract Language

Program Brochure

 Dependent Care Advantage Account (DCAA)

The DCAA  allows employees to pay for child care, elder care and other qualified expenses with pre-tax monies.              

Key Points:

  • Annual Enrollment Period (usually in the fall)

    • For 2009, the enrollment period will run from 9/22 to 11/14

  • Employer Contribution Available

  • $5000 Maximum Contribution

  • "Use it or Lose It" provision applies to any unused surplus

Contract Language

The schedule of contributions has been increased from what is printed in Article 42 of the Contract.  The Current Schedule of Contributions is as follows

Employee Gross
Annual Salary		 Employer
Contribution

 Up to $30,000

 $800
$30,001-$40,000 $700
$40,001-$50,000 $600
$50,001-$60,000 $500
$60,001-$70,000 $400

 Over $70,000

 $300
     
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