is a benefit program that is made available under Section 125
of the Federal Internal Revenue Code. Tax$ave allows eligible
employees to set aside before-tax dollars to pay for certain medical,
dental and dependent care expenses. By using before-tax dollars
to pay these expenses, an employee may save money by reducing
the federal tax liability on annual income.
eligible to participate in plans administered by the NJ Division
of Pensions and Benefits are employees of the State, State colleges
or universities, or other State agencies who are eligible to participate
in the State Health Benefits Program (SHBP).
consists of three components.
Premium Option Plan (POP) allows employees to pay any
State Health Benefits Program medical and/or dental premiums
with before-tax dollars.
In addition, there are two
"Flexible Spending Accounts" (FSAs):
- The Unreimbursed Medical Spending Account (UMSA) plan allows employees to set aside money to pay for
qualified medical and dental expenses not paid by any group
benefits plan under which they or their dependents are covered.
- The Dependent
Care Spending Account (DCSA) plan allows an employee to
set aside money to pay for anticipated expenses related to dependent
care required to permit the employee and spouse to work.
Sheet #44, Tax$ave, and the annual Tax$ave
Open Enrollment newsletter provide additional information