Flexible Benefit Plans
Health Care Reimbursement Account (HCRA)
The CSU Health Care Reimbursement Account is a voluntary benefit for eligible employees that offers significant tax advantages and could increase an employee's take home pay. The plan allows for the reimbursement of out-of-pocket health expenses from money deducted from an employee's paycheck before federal, state and FICA taxes are deducted. Taxable income on an employee's annual W-2 statement will be reduced by the amount placed in the account.
Participants in HCRA must re-enroll during every annual open enrollment period to participate during the following Plan Year. Enrollment is not automatic, even if the employee participated the previous year.
Expenses eligible to be reimbursed from the CSU Health Care Reimbursement Account are expenses incurred by an employee, employee's spouse, and dependents (including domestic partner) for the diagnosis, cure, treatment or prevention of disease, and for treatments affecting any part or function of the body. The expenses must be to alleviate or prevent a physical defect or illness. Expenses solely for cosmetic reasons or expenses that are merely beneficial to a person's general health are not reimbursable. For general information, refer to IRS Publication 502 (Medical and Dental Expenses).
Employees may contribute any amount from a minimum of $20 per month to a maximum of $416.66 a month ($5,000 annual maximum).
The following benefit enhancements for the HCRA plan are effective January 1, 2006:
- The administration fee will be reduced to $1.00; and
- Claims reimbursements will be increased to three (3) times per month per the following schedule:
Claim Receipt Date Claim Reimbursement Date 5th of the month 15th of the same month 15th of the month 25th of the same month 25th of the month 5th of the following month
For additional information regarding the HCRA plan, please refer to ASI's Online Customer Service Center, the Health Care Reimbursement Account Brochure(s).
Dependent Care Reimbursement Account (DCRA)
The CSU Dependent Care Reimbursement Account is a voluntary benefit for eligible employees that offers significant tax advantages and could increase an employee’s take home pay. The Plan allows for the reimbursement of out-of-pocket dependent care expenses from money deducted from an employee’s paycheck before federal, state and FICA taxes are deducted. Taxable income on an employee's annual W-2 statement will be reduced by the amount placed in the account. Expenses eligible to be reimbursed from the CSU Dependent Care Reimbursement Account are expenses for certain dependent care if the care is required in order for the employee (spouse) to work. Eligible dependents for whom the DCA reimbursements can be claimed are:
- A child under age thirteen (13), for whom an employee or spouse can claim dependent status on their income tax return,
- A spouse who is physically or mentally unable to care for him/herself, or
- A financially dependent member* of an employee's household, who regularly spends at least eight hours each day in the employee’s home.
* Including an employee's domestic partner if the domestic partner is a dependent.
Participants in DCRA must re-enroll during every annual open enrollment period to participate during the following Plan Year. Enrollment is not automatic, even if the employee participated the previous year.
Employees may contribute any amount from a minimum of $20 per month to a maximum of $416.66 a month ($5,000 annual maximum). However, if an employee is married and filing a separate tax return, the annual maximum is $2,500. If an employee or spouse's earned income is less than $5,000 a year, the maximum contribution is equal to that person's earned income.
The following benefit enhancements for the DCRA plan are effective January 1, 2006:
- The administration fee will be reduced to $1.00; and
- Claims reimbursements will be increased to three (3) times per month per the following schedule:
Claim Receipt Date Claim Reimbursement Date 5th of the month 15th of the same month 15th of the month 25th of the same month 25th of the month 5th of the following month
FlexCash Plan & Tax Advantage Premium Plan (TAPP)
The CSU offers two plans that help employees manage their benefit needs and save valuable tax dollars. If an employee has medical and/or dental coverage not offered by the CSU, the FlexCash Plan pays cash in lieu of CSU coverage, allowing the employee to receive only the coverage needed. If an employee elects health coverage through the CSU, the Tax Advantage Premium Plan (TAPP) allows for the payment of health insurance premiums on a pre-tax basis, reducing federal, state and FICA taxes.
If an employee chooses to participate in FlexCash, the following monthly after-tax payments are made to the employee:
| Benefit Waived | Payment |
|---|---|
| Medical and Dental | $140 |
| Medical Only | $128 |
| Dental Only | $ 12 |
The CSU may change these amounts in the future, subject to collective bargaining.