Flexible Benefits Programs

• Contact Information
• Description of Plans
• Enrollment/Change Periods
• Family Status Changes
• Eligibility
  
  

Contact Information
1.866.600.4984
optumbank.com/Tennessee
State of TN Flexible Benefits Information

Description of Plans
The Flexible Benefits Plan, often called a cafeteria plan, is a plan that allows you to pay for certain benefits on a tax free basis. The plan is sanctioned under the Internal Revenue Code, Section 125. There are four benefit options to this plan:

• Medical Insurance Premiums: Medical insurance premiums are automatically deducted on a tax-free basis. If you do not wish to have the premium sheltered from taxes you must sign a waiver under this plan.
• Dental Insurance Premiums: Dental insurance premiums are automatically deducted on a tax-free basis. If you do not wish to have the premium sheltered from taxes you must sign a waiver under this plan.
• Medical Expense Flexible Spending Account: You may elect to have an additional reduction of salary made each pay period to an account on a tax-free basis for eligible medical expenses. As eligible expenses (deductibles and co-payments are examples) are incurred, tax-free withdrawals from your account may be made to reimburse yourself. This election must be made as a new employee and then again each year during the annual transfer period.
• Dependent Care Expense Flexible Spending Account: You may also elect to have an additional reduction of salary made each pay period to an account on a tax-free basis for dependent care expenses. As the expenses are incurred, tax-free withdrawals from your account may be made to reimburse yourself. This election must be made as a new employee and then again each year during the annual transfer period.

Enrollment/Change Periods
When deductions are tax-sheltered, you are locked into the elections of health, dental, and/or flexible spending accounts for the calendar year unless you have a family status change, such as changes in spouse's employment or acquiring a new dependent. You have 30 days from a family status change event to make changes to your flexible benefits programs. This includes canceling or changing your dental or health insurance (if the premiums are pre-taxed) coverage and/or increasing/decreasing either of the flexible spending accounts.

You must elect or re-elect the options during each Annual Enrollment Transfer Period for the next calendar year.

Family Status Changes

• Marriage
• Divorce
• Death of employee, spouse, or dependent
• Birth or adoption of child
• Beginning or end of employment of spouse
• Ineligibility of dependent (due to age or marriage)
• Employee or spouse change from full-time to part-time employment or vice versa
• Unpaid leave of absence (employee or spouse)
• Significant change in health coverage due to spouse's employment
  
  

Eligibility
Employee eligibility:

• Regular full and part-time staff employees
• Faculty employed a minimum of 30 hours a week for the full academic year

You do not have to be enrolled in the group insurance program in order to participate in the medical reimbursement or dependent day care accounts.