Plan Cost
The City pays a substantial portion of the cost of your Medical Plan benefits. Your share of the cost may change each year.
If you enroll, except in the case of a domestic partnership, your cost for coverage will be deducted on a before-tax basis. As a result, your taxable income will be reduced by the amount of your premiums. You won't pay any federal or state taxes (or Social Security or Medicare taxes if applicable) on your premiums. Since your taxable income will be lower, your taxes will be lower as well. However, under Federal law, the premium deduction for domestic partners is taken on an after-tax basis and is therefore subject to applicable payroll taxes.
Cost for Coverage - For Other Than Crossing Guards
The following rates apply to the PPO Plan, POS Plan or HMO Plan of your choice for those who are actively at work. These rates are for 2001, 2002 and 2003 and are for each pay period. Your cost will be automatically deducted from your paycheck before taxes are calculated. Consult with your tax advisor if you have any questions about before-tax premiums.
Your cost for medical coverage is based on your salary and level of dependent coverage. If you change your level of dependent coverage during the year because of a change in family status, your cost will increase or decrease accordingly. Also, your cost will be adjusted during the year to reflect changes in your salary.
The following formulas will be applied to your annual salary and will determine the amount of your contribution per pay period:
| Annual Salary |
Single
|
Employee + 1
|
Family
|
| up to $30,000 (flate rate) |
$12.50
|
$19.00
|
$22.00
|
| $30,001 to $89,999 |
1.0281%
of gross annual salary divided by 24 |
1.5797%
of gross annual salary divided by 24 |
1.9705%
of gross annual salary divided by 24 |
| $90,000 and over (flat rate) |
$38.60
|
$59.30
|
$73.95
|
Example 1. If your annual salary is under $30,001, your contribution will continue at a flat rate of $12.50 for Single, $19.00 for Employee + 1 and $22.00 for Family.
Example 2. If your annual salary is $44,652 and you have elected coverage for:
Single $44,652 x .010281 divided by 24 = $19.13
Employee + 1 $44,652 x .015797 divided by 24 = $29.39
Family $44,652 x .019705 divided by 24 = $36.66
These calculations can be computed for any salary from $30,001 to $89,999 depending on the level of coverage. As your salary increases, your contribution per pay period will increase accordingly.
Example 3. If your annual salary is $90,000 or more your contribution is capped at a flat rate of $38.60 for Single coverage, $59.30 for Employee + 1 and $73.95 for Family.
Cost for Coverage - For Crossing Guards
The following rates apply to the PPO Plan, POS Plan or HMO Plan of your choice for those who are actively at work. These rates are for 2001, 2002 and 2003 and are for each pay period. Your cost will be automatically deducted from your paycheck before taxes are figured. Consult with your tax advisor if you have any questions about before-tax premiums.
Your cost for medical coverage is based on your salary and level of dependent coverage. If you change your level of dependent coverage during the year because of a change in family status, your cost will increase or decrease accordingly. Also, your cost will be adjusted during the year to reflect changes in your salary.
The following formulas will be applied to your annual salary and will determine your contribution per pay period:
| Annual Salary |
Single
|
Employee + 1
|
Family
|
| up to $36,000 (flat rate) |
$16.67
|
$25.33
|
$29.33
|
Crossing Guards are eligible for health benefits during the unpaid summer break. Therefore, rates have been calculated to deduct before-tax premiums for the benefit year into 18 pay periods. This allows premiums for the entire year to be deducted in nine months.
November 2002