Pratt Community College has adopted a Flexible Benefit Plan to allow employees to select from among benefit options made available under the Flexible Compensation Plan and pay for the selected benefits for yourself, your spouse, and your dependents via pre-taxed salary reduction contributions. You may choose from designated “tax free” benefits in lieu of receiving taxable compensation. Benefits covered under the Plan include: PCC group health and dental insurance premiums, supplemental premiums for optional PCC benefits, child or dependent care, and eligible out of pocket medical expenses. Optional life insurance premiums are not eligible under this pocket medical expenses. Optional life insurance premiums are not eligible under this Plan.
The Plan is intended to qualify as a “Cafeteria Plan” within the meaning of Section 125(d) of the Internal Revenue Code, and the benefits you elect will be excluded from your income under Section 125(a).
Participation in the plan is voluntary. The plan is designed with a $500 per year carry-over feature which allows the individual to incur expenses in the following plan year to use the funds in their carry-over balance. If an employee has a carry-over balance and does not enroll in the Plan for the upcoming plan year they are allowed to incur expenses and receive reimbursement up to the balance of their carry-over as long as they are employed with PCC.
In the event an employee has a carry-over balance and is not enrolled in the Plan, they will be assessed a monthly administrative fee until the funds are used. Reimbursement of funds will be per the plan design.