​Employee contributions for medical insurance premiums are deducted from your paycheck on a pre-tax basis as part of the IRS Section 125 cafeteria plan. This program is referred to by our district as a Premium Only Plan (POP).

What does this mean to you? It means if you have any health premiums that are not paid through district contributions, they will be deducted from your gross pay pre-tax, before federal, state, and Social Security (FICA) taxes. Therefore, your salary dollars will stretch further.

Here are a few additional points you’ll need to know about POP:

• Participation in the plan does NOT affect your current life and health plan benefits;
• Gross annual earnings will continue to be used to determine any future salary increase and/or       403b) or 457 contributions;
• Your annual tax withholding (W-2) statements will reflect your reduced taxable income;
• Your Social Security benefits may be slightly reduced as a result of your election.

Due to the favorable tax advantages, all employees with benefit cost contributions will save money by participating in this pre-tax Plan, however, participation is voluntary. If you would like to decline participation in the Premium Only Plan, you may do so at the beginning of each fiscal year during “Open Enrollment”, by downloading and completing the POP form.

IMPORTANT NOTE: If we do not receive a signed “Declination Application/Agreement”, your employee benefit contributions will continue to be deducted on a pre-tax basis. Participation in this plan will continue each fiscal year until you complete a form.

Download and complete the​ POP Plan form only if you choose NOT TO PARTICIPATE in the pre-tax premium deduction program, and return it in a sealed envelope addressed to Risk Management/Benefits.. We will begin deducting any health insurance premiums you may have, after tax, beginning July 1.