Litchfield Schools Benefit Summary January 1, 2018 ~ December 31, 2018 Please note that current coverages in place are effective 1/1/18. All new coverages or changes elected during open enrollment will be effective 2/1/18. Look inside for important information about the benefits offered to you as an employee of Litchfield Schools.
What is Section 125/Cafeteria Plan? En- Eligible employees are able to participate in a Section 125 Flexible Benefit Plan. rollment opportunities are limited to the plan year dates for your district. A Section 125 Flexible Benefit Plan allows you, the employee, to select from a list of available benefits that will meet your family s healthcare needs. Certain benefit premiums are deducted from your gross earnings before federal withholding taxes are figured. The amount you elect to have deducted pre-tax actually lowers your taxable income. By implementing this plan, your employer is helping you reduce your taxes and increase your take home pay. Representatives from First Financial will be in the district October and November to review plan options and help make changes to your voluntary benefit elections under the Cafeteria Plan. Earnings and Hours Without 125 With 125 Monthly Salary $3,000.00 $3,000.00 Benefits n/a $449.00 Taxable Gross $3,000.00 $2,551.00 Taxes $(450.00) $(382.65) Benefits $(449.00) n/a Take Home Pay $2,101.00 $2,168.35 WOW - YOU KEEP $67 The Benefit period for Litchfield Elementary School District is January 1, 2018 December 31, 2018, including new enrollments. To be eligible for this benefit, you must work 35 hours per week unless you are a bus driver regularly scheduled to work 28 hours or more per week. All eligible employees are required to see a Representative and sign an election form, even if you do not participate. Flexible Spending Accounts Flexible Spending Accounts are tax-favored accounts that allow participants to set aside money pretax for eligible Medical and Dependent Care costs. Flexible Spending Accounts (FSAs) allow an employee the opportunity to put some of his/her salary aside before taxes to pay for many common out-of-pocket expenses. USE IT OR LOSE IT!!! Use-it-or-lose-it refers to an IRS requirement. If you do not spend all the money you have elected, it will be forfeited because it cannot be rolled over or refunded to you. Any money that you elect to set aside in a flexible spending account for a given Benefit Period may be used only for eligible expenses you incur for services received during that Benefit Period. So, it's very important that you plan carefully when deciding on how much to allot for your FSA account(s). The Benefit period for Litchfield Elementary School District is January 1, 2018 December 31, 2018, including new enrollments. To be eligible for this benefit, you must work 35 hours per week unless you are a bus driver regularly scheduled to work 28 hours or more per week.
Medical Reimbursement Your medical reimbursement account may be used to reimburse you for expenses that you incur for treatment of yourself, spouse and dependent children. Eligible medical expenses include deductibles and coinsurance amounts under a group health plan, charges that are in excess of the amount reimbursed under a group health plan, and charges that are not covered under a group health plan such as certain corrective surgeries, vision care, dental care and hearing aids. Over-the-Counter medical supplies are also eligible for reimbursement under this plan. For a complete list of eligible expenses go to www.ffga.com/forms/125flexiblebenefitsplan.pdf. Maximum contribution amount for the 2018 plan year is $2600 Per Year. As an added bonus, your district is eligible for the Metavante Debit Card. Use this to pay with eligible expenses from your Medical Reimbursement account without having to submit a claim. Talk to your agent for more information on this. The Benefit period for Litchfield Elementary School District is January 1, 2018 December 31, 2018, including new enrollments. To be eligible for this benefit, you must work 35 hours per week unless you are a bus driver regularly scheduled to work 28 hours or more per week. Dependent Childcare Reimbursement This benefit allows you to pay for dependent care expenses with pre-tax dollars. The maximum amount for Dependent Care Reimbursement is $5,000 per plan year. Dependent daycare center expenses are eligible if the care is for your dependent under age 13 and for any other qualifying dependent (including adult dependents), who regularly spends at least 8 hours each day in your household. Child support payments and childcare payments qualifying as alimony are not qualified expenses for reimbursement. The Benefit period for Litchfield Elementary School District is January 1, 2018 December 31, 2018, including new enrollments. To be eligible for this benefit, you must work 35 hours per week unless you are a bus driver regularly scheduled to work 28 hours or more per week.
Disability Insurance - American Fidelity Existing insureds may be able to increase your disability benefit with no health questions asked. A disability policy is a great way to meet your financial obligations should you be unable to work. This insurance is designed to provide a monthly income to an individual that becomes disabled due to an accident, illness, or pregnancy. To be eligible for this benefit you must work a minimum of 20 hours per week. This benefit is a post tax deduction. Permanent Whole Life Insurance - Texas Life This life insurance is available to employees who want long-term coverage. As an LESD employee you re eligible to apply for up to $300,000 through Express Issue in life insurance with very limited health questions asked. This plan is flexible, allowing employees to get life insurance coverage on their spouses, children and grandchildren, even if they do not get it on themselves. All employees are eligible for this benefit on a post-tax deduction. Term Life Insurance - American Fidelity Employees can elect coverage for themselves, spouses and children. This policy has the ability to convert to a portable policy if you ever leave employment with the district. You can purchase this policy with flexible terms like 10, 20 and 30 years. Conversions on more permanent life are also available once the term level ends. Cancer Insurance - American Fidelity Cancer insurance is designed to be a supplement and pays for many of the costs not covered by your major medical insurance. This plan pays in addition to other coverage you may have. All employees are eligible for this benefit. Premiums will be deducted pre-tax for employees who work 35 hours/28 hours for bus drivers and post-tax for all other employees. Accident Insurance - American Fidelity You can not predict when or if an accident will happen, but you can protect yourself and your family against the high cost of an accidental injury or death. This plan pays in addition to other coverage you may have. Family coverage is available. All employees are eligible for this benefit. Premiums will be deducted pre-tax for employees who work 35 hours/28 hours for bus drivers and post-tax for all other employees. Long Term Care - LifeSecure The Need for Long-Term Care Can Happen To Anyone. Anyone can be affected by an illness or accident, not just the elderly. Long-Term Care Insurance is a good choice at any age. Statistics show that 40% of people receiving long term care services are working age adults, between the ages of 18 and 64. (Conning & Company, Long term care insurance - Baby Boom or Bust?, 1999). All employees are eligible for this benefit as a post-tax deduction.
457 DEFFERRED COMPENSATION PLAN What is Deferred Compensation? It is a voluntary salary reduction plan allowing eligible employees to defer current taxable income during peak earning years and accumulate funds for retirement savings. These funds are set-aside for you as before-tax dollars reducing your current income tax liability and provides, through payroll deduction, the easiest way to accumulate savings for the future. Earnings on these funds are also tax deferred. All employees, full time or part-time are eligible to enroll in this benefit at any time. What are unique advantages of a 457? At early retirement or severance of service from your employer, distribution of the Plan can be made without the 10% IRS penalty tax usually associated with early distribution from other retirement plans such as IRA s, 403(b) or 401(k) plan. Benefits are paid at death, disability, unforeseen emergency, retirement or severance of service. You can select from a wider choice of investment options including fix annuities, variable annuities and mutual funds. How do I enroll in a 457? You must contact your First Financial representative in order to begin contributing to a 457. You can call (800) 365-3860 or email ginger.huff@ffga.com for more information to setup a 457. How will my money work for me?
Contact Information First Financial Administrators Arizona Branch Office 800-365-3860 Ginger Huff, State Manager ginger.huff@ffga.com Flex Claim Status 800-523-8422 Flex Claim Forms & Account History www.ffga.com/onlineflex.htm Retirement Service Department 800-523-8422 Www.ffga.com/403b/403bMain.aspx American Fidelity (Disability, Cancer, Accident & LTC) 800-654-8489 Customer Service www.afadvantage.com Claim Forms Texas Life (Life Insurance) 800-283-9233 Customer Service www.texaslife.com AUL/One America (457) 800-249-6269 Customer Service www.oneamerica.com