fsa-msc-premium-conversion-faqs

Office of Labor Relations


Employee Asst Pgrm Flex SpendingMgmt Benefits VDC Program

FSA Videos
Worksheets and Calculators
DeCAP
HCFSA
MSC Health Benefits Buy-Out Waiver
MSC Premium Conversion
FSA Forms and Downloads
FSA Frequently Asked Questions
Email FSA

FSA Videos

Worksheets and Calculators

DeCAP

HCFSA

MSC Health Benefits Buy-Out Waiver

MSC Premium Conversion

FSA Forms and Downloads

FSA Frequently Asked Questions

Email FSA


MSC Premium Conversion Program

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Frequently Asked Questions

What is the MSC Premium Conversion Program? View the Answer

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The MSC Premium Conversion Program enables eligible employees to pay for their health plan premium deductions on a before-tax basis, thereby reducing their gross income for tax purposes.

How can I benefit from the MSC Premium Conversion Program? View the Answer

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Currently, health plan deductions for basic and/or optional benefits are deducted from your salary. For tax purposes, payments are made on a before-tax basis, effectively reducing the salary on which your taxes are computed by the amount of the health plan deduction. Therefore, federal and Social Security taxes that must be withheld are reduced. The net effect will be that you receive more money in your paycheck.

How do I enroll? View the Answer

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Enrollment in the MSC Premium Conversion Program is automatic. If you have a health plan premium deduction, it will automatically be taken on a pre-tax basis. However, you are able to choose post-tax payments if you wish. Employees may change from pre-tax to post-tax or vice-versa during the Health Benefits Fall Transfer Period.

Can I make changes to my status? View the Answer

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Employees must choose to pay on a pre-tax or post-tax basis for an entire year and cannot change unless an approved Qualifying Event occurs. Similarly, employees who declined enrollment in the Premium Conversion Program may enroll only if a Qualifying Event occurs.

How do I get further information about this Program? View the Answer

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Contact the MSC Administrative Office at (212) 306-7760 or (212)306-7789.