February > Be a Wise Healthcare Consumer
Be a Wise Healthcare Consumer
Change to the Cafeteria Plan
Based upon a recent determination, effective February 1, 2013, the University of Texas Plan Document has been updated to remove voluntary group term life insurance from premium redirection. This determination means that all premiums for voluntary life insurance must be deducted from payroll on a post-tax basis.
If you previously paid any of your voluntary life insurance premium with pre-tax dollars, you will see a minor change in your payroll tax deductions. This change impacts only premiums for voluntary life coverage amounts up to $30,000 ($50,000 for those who waived the Basic coverage package). Therefore, the difference in payroll tax deductions is expected to be minimal because the handling of premiums for voluntary group term life coverage amounts in excess of these amounts will remain unchanged.
For questions regarding any adjustments to your payroll earnings, please contact your institution's Payroll Office.