Open Enrollment November 1-21
UC provides two programs that can help employees lessen the impact of health-care expenses. With Open Enrollment coming up in November, take a look at how these two programs can help you manage:
- With the Tax Savings on Insurance Premiums (TIP) program, your medical-plan premiums are automatically deducted from your UC earnings before taxes (unless you have chosen not to participate in the program). Your taxable income is reduced by the amount of your premiums, and as a result, you pay less tax. If you have previously opted out of TIP, you can opt back into it for 2007 during Open Enrollment.
- With a Health Care Reimbursement Account (HCRA), you set money aside each pay period by deduction from your UC earnings before taxes to build an account that you can use to pay anticipated qualified out-of-pocket health-care expenses during the year. As with TIP, your taxable income is reduced by the amount of your HCRA contributions, and you pay less tax. You can open a HCRA account for 2007 during Open Enrollment. If you already participate in HRCA, you must re-enroll if you want an account for 2007.
New for 2007
HCRA participants will receive a convenient spending-account card that can be used to pay for eligible out-of-pocket health-care expenses at participating providers’ offices and facilities, drug stores and most pharmacies where VISA® cards are accepted. With the card, you simply “debit” your UC HCRA account (without the hassle of a PIN) and you won’t have to pay cash out of pocket or file reimbursement claim forms.
More UC Tax-Savings Programs
TIP and HCRA are only two of a number of UC programs in which you can participate to reduce your tax liability, while paying for expected expenses or building security for your future during retirement. Those programs include the following:
- Dependent Care Reimbursement Account (DepCare)
- Pre-Tax Parking and Public Transportation Program
- UC Retirement Savings Program
For more information about these plans, visit At Your Service or contact Campus Human Resources, Benefits Services.
Campus Human Resources, Benefits Services
Phone: (310) 794-0830 | Fax: (310) 794-0835
