who are eligible to participate in the State
Health Benefits Program (SHBP) can save tax dollars by participating
in the Premium Option Plan (POP). The plan allows
members to pay any of their SHBP medical and/or dental premiums
with before-tax dollars.
the POP, the member's premiums for medical and/or dental coverage
are deducted from the member's paycheck before federal
income and FICA (Social Security and Medicare) taxes are calculated. As
a result, money is saved on taxes withheld, which yields a higher
"take home" amount in each check. (Members who decline
POP enrollment have their medical and/or dental premiums deducted
after federal income and FICA taxes are calculated, so these taxes
are calculated on a higher income.)
amount each person saves depends on a variety of factors, such
as the amount of the premiums and the income tax filing status
claimed by the member.
an employee is making a premium contribution for dental and/or
medical coverage, enrollment is automatic. If a person chooses
to decline enrollment into the POP, each year a Declination
of POP form must be signed and returned to the benefits administrator.
The plan runs on a calendar year basis.
POP will increase take-home pay; it does not change medical and/or
dental premiums paid.
only form required is a Declination of POP form, if
an employee wishes to decline participation. If the
employee wishes to decline in future years, a new "Declination"
form must be completed and submitted prior to each calendar year.
If a declination form is not received before the start of a calendar
year, the employee will automatically be enrolled for that year.
employees who start work in 2006 and who wish to decline participation
in the POP should complete the appropriate form:
of POP for Employees Paid through Centralized Payroll.
of POP for Employees of the State Colleges and Universities.
should count on receiving copies of the 2007 form prior to 2007
Open Enrollment in October 2006.