What is the MSC Premium Conversion Program? View the Answer
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
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
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 mid-year?View the Answer
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 mid-year. Similarly, employees who declined enrollment in the Premium Conversion Program may enroll mid-year only if a Qualifying Event occurs.
How do I get further information about this Program? View the Answer
Contact the MSC Administrative Office at (212) 306-7760.