The Benefits for Cash Plan is an optional benefit plan that allows you to waive medical and/or dental insurance plan(s) in exchange for cash if you have other coverage. If you waive or cancel your medical and/or dental insurance plan(s), you will receive additional cash in your paycheck each month.
The Benefits for Cash Plan payment is treated as taxable income and will be subject to the same payroll taxes (federal, state, social security) as regular salary. The additional cash income will be reported as income on Form W-2 in the year it is received.
You need to make sure your medical and/or dental needs are met before you elect the Benefits for Cash Plan. If you decide to waive medical and/or dental coverage(s), you will be required to certify on the Benefits for Cash Plan Enrollment Form that you have alternative coverage(s) and those coverage(s) have been approved by CSUSM Corporation. The alternative coverage can not be coverage through the Affordable Healthcare Act. This certification of alternative coverage will be confirmed each year at Open Enrollment.
If you are a regular benefited employee and you have certified your alternative coverage(s) and that coverage has been approved by CSUSM Corporation, you are eligible for the Benefits for Cash Plan.
If you elect to receive cash in lieu of medical and/or dental insurance coverage(s), the cash payments made to you will be $128 per month gross pay (medical) and $12 per month gross pay (dental) (not to exceed a total of $140 per month). This amount will be reviewed annually and is subject to change in future plan years.
Current employees have two opportunities to enroll in the Benefits for Cash Plan: (1) during the regular open enrollment period for the respective benefit plans. Open enrollment for medical benefits is normally during the months of September and October, with coverage effective January 1st of the following year. There is no open enrollment for dental benefits (2) upon return from an approved leave of absence where the open enrollment period was missed. New employees are given the opportunity to enroll in the Benefits for Cash Plan during their new hire orientation and effective the first of the month following date of hire.
You need to complete the Benefits for Cash Plan Enrollment Authorization Form to enroll. When you sign the form, you are certifying you are covered by another medical and/or dental plan(s) and you agree to the terms and conditions of the Benefits for Cash Plan. When you enroll in this plan, you will also need to complete forms to cancel the corresponding medical and/or dental coverage(s).
Your Benefits for Cash Plan will be in effect the first of the month following date of hire (new hires) and for the full plan year (January 1 through December 31). Your enrollment in the Benefits for Cash Plan will continue from year to year until you change or terminate your enrollment during the subsequent open enrollment periods. At that time, you will have to complete a new Benefits for Cash Plan Authorization Form to change or cancel your Benefits for Cash amount(s) in addition to the required medical and/or dental forms.
You may not start or stop your Benefits for Cash Plan election in the middle of a plan year. Changes to the Benefits for Cash Plan can only be made (1) during the regular open enrollment period for the respective benefit plans. Open enrollment for medical benefits is normally during the months of September and October, with coverage effective January 1st of the following year or (2) upon return from an approved leave of absence where you missed the open enrollment period. There is no open enrollment for dental benefits.
Should you lose your other coverage through uncontrollable circumstances during the year and outside the open enrollment period, you either wait until open enrollment, or submit an enrollment for self and/or all eligible family members along with evidence of loss of other coverage(s). If approved, you will then need to complete all necessary enrollment/change documents required by the medical and/or dental plans.
If you elect to participate in the Benefits for Cash Plan and waive coverage under the medical and/or dental plan(s), you also waive any Consolidated Omnibus Reconciliation Act (COBRA) continuation rights you may have had under the medical and/or dental contract(s).
If you are married and you waive medical and/or dental coverage(s) under the Benefits for Cash Plan and you subsequently die without coverage, your surviving spouse will not have medical and/or dental continuation rights.
This Benefits for Cash Plan is intended to qualify as a ‘cafeteria plan’ under Section 125 of the Internal Revenue Code of 1986, as amended, and is to be interpreted in a manner consistent with the requirements of Section 125. The CSUSM Corporation Board of Directors reserves the right to amend, change or cancel this plan at any time.
This plan was revised on September 3, 2015 and approved by CSUSM Corporation’s Board of Directors. This plan revision is to be effective for the plan year beginning January 1, 2016.