Laserfiche WebLink
<br />e <br /> <br />e <br /> <br />~ - <br /> <br />.' <br /> <br />4. Elections - Elections are Irrevocable once the period of coverage has <br />begun. If the employee has designated a change because of premium <br />Increases during the plan year prior to the beginning of benefits <br />coverage, the change wll I stll I qualify. So the wording In a POP may <br />stipulate automatic salary reduction or premium Increases during 'a <br />plan year. <br /> <br />Exceptions to this Include: <br /> <br />o marriage or divorce of a participant <br />o death of a spouse or dependent <br />o addition or deletion of dependents <br />o a participant or spouse gains or loses employment <br /> <br />5. Nontaxable Benefits - The fol lowing nontaxable benefits are <br />specifically al lowed or mentioned in the I.R.C.: <br /> <br />a. Group term life - Imputed Income would accrue on amounts over <br />$50,000 and would have to be tracked for W2 reporting. <br /> <br />b. Accident and health plans: <br /> <br />o short-term or long-term disabll ity <br />(if LTD is bought pre-tax,the benefit would be taxable upon <br />receipt) <br />o survivor income premiums <br />o medical <br />o dental <br />o eye care/vision <br />o hearing <br />o prescription drug plans <br />o company sponsored/approved/nondiscriminatory fitness centers, or <br />premiums/dues for health promotion faclt Itles <br /> <br />c. Group legal - premiums or dues, and pre-paid fees <br /> <br />d. Dependent care - premiums or dues, and pre-paid fees <br /> <br />7. Participation In the POP reduces Social Security benefits. Salary <br />reduction decreases earnings under workers' compensation, federal <br />unemployment compensation, and FICA. <br /> <br />Est i mated Sect i on 125 "POP" Say i ngs to City of la Porte <br /> <br />The computerized illustration on the fol lowing page estimates the impact <br />on take-home pay after the Implementation of a POP program. Also <br />Illustrated are the estimated savings the City of La Porte can derive from <br />reduced FICA contributions. As a brief example of the savings Involved <br />under current 1987 tax laws and rates, the fol lowing example should <br />clarify the Section 125 advantage to City of La Porte and Its employees. <br />This particular example assumes an employee contribution for dependent <br />coverage (i.e. family) of $15.56 per month. <br /> <br />JlITn <br />- -.. . <br />;? HuDNsm.nan.IIC. <br />