Should I waive pre-tax treatment of your employee premium contributions to the FEHB program?
Should I waive pre-tax treatment of your employee premium contributions to the FEHB program?
Your decision to waive pre-tax treatment must be made during FEHB Open Season or within the specified time period after a Qualifying Life Event (QLE). If you change your participation during Open Season, it will become effective on the first full pay period in the following calendar year.
What is FEHB PTAX?
What is the Federal Employees Health Benefits (FEHB) Program? The FEHB Program is the largest employer-sponsored group health insurance program in the world, covering almost 9 million people including employees, annuitants, and their family members, as well as some former spouses and former employees.
What is pre-tax treatment of your employee premium contributions to the FEHB program?
“Premium conversion” is a pre-tax arrangement in which the part of an employee’s salary that goes for Federal Employees Health Benefits (FEHB) program premiums becomes non-taxable. This means that participants save on federal income tax and Social Security and Medicare taxes.
Do you have to pay premiums pre tax for FEHB?
Paying premiums pre-tax (known as premium conversion) allows Federal employees to use pre-tax dollars to pay premiums for the FEHB Program. You will automatically be under premium conversion unless you elect to waive it. Federal retirees are not eligible to pay premiums with pre-tax dollars.
When to waive participation in FEHB premium conversion?
You may change your participation in premium conversion during the FEHB open season. If you are currently participating and you think you may want to cancel your health insurance coverage or change your level of coverage, you may want to waive participation in premium conversion during an open season.
How are federal retirement benefits affected by FEHB?
Federal retirement benefits, Thrift Savings Plan and life insurance benefits are not affected by participation in premium conversion. All participants in premium conversion must have their FEHB premiums deducted from their pay as employees, not from their retirement annuities.
When do I have to sign up for FEHB?
New employees, employees who are newly eligible, and those who experience certain FEHB qualifying life events (QLE) such as marriage, divorce, birth, death, etc., may enroll within 60 days of becoming eligible or of the QLE. (Find a summary of the major QLEs at www.opm.gov/insure/health/planinfo/ qle.asp.)
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