CCC Workbook 2013 - FINAL.pdf - Cherry Creek School District

PRE-TAX CONTRIBUTIONS
TAX ELECTIONS FOR PREMIUMS
If the benefit plans you select cost more than the District’s monthly contribution, you may
contribute benefit dollars out of your paycheck with pre-tax dollars for these plans:
• Medical Coverage
• Dental Coverage
• Vision Coverage
• Health Care Reimbursement Plan
• Dependent Care Assistance Plan
• Voluntary Life
• Voluntary Accidental Death - Dismemberment (AD&D)
Cherry Creek will automatically default your tax selection to a pre-tax basis. You pay no
federal or state income, Medicare, or PERA taxes on your pre-tax contributions.
AFTER-TAX CONTRIBUTIONS
When you approach the final four years before retirement, PERA recommends that if your
benefit selections exceed your district contribution, you may wish to change your status to
after-tax. The amount that exceeds the district contribution is taken directly out of your salary
and when deducted on a pre-tax basis, this reduces the earnings reported to PERA and
lowers your highest average salary. If your premium totals are less than the district contribution,
this will not affect your PERA earnings and may only be contributed on a pre-tax
basis.
Please contact PERA if you have questions related to your highest average salary. An employee
may elect to have medical, dental, vision, voluntary life and voluntary AD&D premiums
on an after tax basis. You cannot participate in the Healthcare Reimbursement
or Dependent Care on an after-tax basis.
Once elected, this selection will continue for the full plan year. A change can only be
made during open enrollment or as the result of an eligible status change.
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