4.7 Benefits Waived by Employee
Eligible full-time and regular part-time employees may elect to reduce and/or waive medical and/or dental benefit coverage, and receive as taxable compensation a portion of the premium cost savings realized by the College.
Procedure: Eligibility and Election
Benefit-eligible Employees may elect to waive their medical and/or dental insurance coverage if they are able to secure coverage through:
- Their spouse's medical and/or dental insurance; or
- By obtaining medical and/or dental insurance through another source.
Employees may apply for benefit waiver compensation at time of employment or during the annual Open Enrollment period each May for the benefit plan year starting the following July 1 by completing a Request for Employee Benefit Waiver form available in the Human Resources Office.
It is the responsibility of the employee to provide proof of coverage and to secure and maintain coverage during the period of time that coverage through the College is waived.
Once approved, an employee's benefit waiver shall remain in effect until such time that the employee makes a written request to the Human Resources Department to receive medical and/or dental benefit coverage.
Procedure: Benefit Waiver Amounts and Method of Payment
The benefit waiver compensation payments in effect each plan year (July1 through June 30) shall be communicated to all employees during the annual Open Enrollment period.
The medical benefit waiver compensation will be calculated separately for employees hired in benefit-eligible positions before or after January 1, 2004. The medical waiver amounts will be the same for all employees, based on their dates of hire.
The dental benefit waiver compensation in effect each plan year (July1 through June 30) shall be calculated in the same manner for all employees, regardless of hire date. The maximum dental waiver compensation may not exceed fifty (50) percent of the College’s net cost for the highest single coverage premium cost for dental benefits in effect on July 1 of each plan year.
Benefit waiver compensation for benefit-eligible, regular part-time and voluntary partial leave employees will be pro-rated according to their work schedule.
The annual amount of an employee's benefit waiver compensation shall be paid to employees in 26 equal payments through the payroll system. To be eligible for the bi weekly benefit waiver payment, employees must be in active pay status or eligible for health benefits under the Family and Medical Leave Act. Benefit waiver compensation shall be separate from the employee's regular earnings and is subject to Internal Revenue Service (IRS) taxable income reporting requirements.
For employees hired during the plan year, the annual benefit waiver compensation amount shall be pro-rated and paid during the remaining portion of the plan year. For employees changing employment status during the plan year, the annual benefit waiver compensation amount will be recalculated and pro-rated based upon the change in employment status. For employees separating from the College during the year, the final employment date shall be the basis for pro rating the annual benefit waiver compensation amount.
Procedure: Qualifying Event Changes
In accordance with IRS rules, the election of benefit waiver compensation must remain in effect for the entire plan year (July 1 through June 30). If an employee loses medical and/or dental coverage during the plan year due to a “qualifying event” designated under Section 125 of the Internal Revenue Code, the employee may apply for coverage in one of the College’s medical or dental plans by submitting a written request and proof of the loss of coverage to the Human Resources Office within 30 days of the event.
If notice is made in a timely manner, the change will be effective on the first day of the month following the day of the event with the exception of a birth, adoption, or placement of a child. For births, adoptions, or placement of a child, the effective date is the date of the event provided the employee notifies Human Resources within 30 days.
The employee’s applicable medical and/or dental waiver compensation payments will cease on the date the health insurance benefits become effective.