Pre-Tax Contribution Program for State Employees

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Published November 9, 2018

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Every November, enrollees in the NYS Health Insurance Program (NYSHIP) may elect to participate or not participate in the Pre-Tax Contribution Program (PTCP) for the upcoming plan year. During November, current PTCP enrollees may also make changes to their coverage (without a qualifying event) which impact the NYSHIP deduction for the upcoming plan year.

What Is The Difference Between Pre-Tax And After-Tax Deductions?

  • If you elected to have your deductions taken on a pre-tax basis, your premium is deducted prior to taxes being calculated and withheld from your pay. Pre-tax deductions generally reduce your taxable income and the amount of taxes you pay. There are no tax consequences for having pre-tax health insurance deductions. 
  • If you elected to have your deductions taken on an after-tax basis, your premium is deducted after taxes are calculated and withheld from your pay. If you (and your dependents) enrolled in health insurance as a Late Enrollee or due to Prior Coverage Termination within 2018, deductions are automatically taken on an after-tax basis per IRS guidelines.  
  • This does not pertain to domestic partnerships.

How Do I Know If My Deductions Are Pre-Tax Or After-Tax?

  • If your paycheck stub shows a deduction labeled Regular Before-Tax Health in the Before-Tax Deductions section, your deductions are pre-tax. 
  • If your paycheck stub shows a deduction labeled Regular After-Tax Health in the After-Tax Deductions section, your deductions are after-tax.

Do I Need To Do Anything?

Forms are due by November 30, 2018

 

If you wish to change your PTCP selection for 2019, file a NYS Health Insurance Transaction Form-PS 404 (with sections 1-9 & 13 completed). 

Please submit completed forms to State Benefits in 120 Crofts Hall. 

The change will take effect in January 2019. If you do not wish to make changes, you do not need to take any action. Your deductions will continue as normal. Whether or not you make changes, your health insurance is not affected.

Contact an Expert

Nadine Burns.

Nadine Burns

Health Benefits Administrator

State Benefit Services

Phone: 716-645-4471

Email: nmburns@buffalo.edu