Employee Benefits - NIH Benefits Information - Did You Know? November 2008
What’s New?
- Benefits Calendar Of Events
- The Federal Benefits Open Season Is Quickly Approaching!
- The 2009 Rates Announced For The Federal Employees Health Benefits (FEHB) Program!
- The 2009 Rates Announced For The Federal Employees Dental And Vision Insurance Program (FEDVIP)!
- The 2009 IRS Limits Announced For The Thrift Savings Plan (TSP)!
- Maryland Has A New Tax Law Regarding Marital Status And Employer Withholding!
Topics Of Interest:
- Use Or Lose Annual Leave Reminder
- What Is The Difference Between A Flexible Spending Account (FSA) And A Health Savings Account (HSA)?
- Can I Make Thrift Savings Plan (TSP) Catch-Up Contributions?
- My Federal Employees Health Benefits (FEHB) Plan Provides Some Dental And Vision Coverage. If I Enroll In The Federal Employees Dental And Vision Insurance Program (FEDVIP), Will It Replace My Current Coverage?
- Why Do I Need A myPay PIN?
Where Do I Go If I Have Questions About My Benefits?
1. BENEFITS CALENDAR OF EVENTS
2. THE FEDERAL BENEFITS OPEN SEASON IS QUICKLY APPROACHING!
The following three programs will be participating in this year’s Federal Benefits Open Season for the 2009 plan year: 1) Federal Employees Health Benefits (FEHB) Program; 2) Federal Employees Dental and Vision Insurance Program (FEDVIP); and 3) Flexible Spending Accounts (FSA) Program. The open season will run November 10, 2008, through December 8, 2008. You should read the open season announcement thoroughly for information pertaining to each program.
Please remember that there are no longer open seasons for the Thrift Savings Plan (TSP). You may start, stop or change your TSP contributions at any time via myPay, provided you are eligible to participate in the TSP.
3. THE 2009 RATES ANNOUNCED FOR THE FEDERAL EMPLOYEES HEALTH BENEFITS (FEHB) PROGRAM
The new 2009 rates for the FEHB Program are now available on the Office of Personnel Management (OPM) website. The plan brochures will be available on the OPM site beginning November 3, 2008.
4. THE 2009 RATES ANNOUNCED FOR THE FEDERAL EMPLOYEES DENTAL AND VISION INSURANCE PROGRAM (FEDVIP)!
The new 2009 rates for FEDVIP are now available on the OPM website. The plan brochures will be available on the OPM site beginning November 3, 2008.
5. The 2009 IRS LIMITS ANNOUNCED FOR THE THRIFT SAVINGS PLAN (TSP)!
The IRS limit for 2009 has increased to $16,500 for regular TSP contributions. If you are covered by FERS, you could lose valuable matching Agency TSP contributions by reaching the limit before the end of the calendar year. If you expect to enter your myPay (DFAS) election for 2009 between December 7- 20*, 2008, and you want equal payments deducted over the calendar year for 26 paydays, you should elect to contribute $635 each pay period. Your election will be effective on December 21st, the first pay period for 2009. If your election is entered after December 20th, you will need to adjust this amount. To determine the adjusted amount, use the Elective Deferral Calculator on the TSP website. If you have additional questions, refer them to your Benefits Contact. (*It is recommended that you enter your election by December 18th, if you want to ensure an effective date of December 21st.)
For information pertaining to TSP Catch-up contributions, refer to topic #9 below. The IRS limit for 2009 for Catch-up contributions has increased to $5,500.
6. MARYLAND HAS A NEW TAX LAW REGARDING MARITAL STATUS AND EMPLOYER WITHHOLDING!
Effective January 1, 2008, the Maryland General Assembly enacted the Tax Reform Act of 2007. This Act incorporates an employee’s marital status, resulting in major changes in the income tax law that affects employer withholding. As a result, if you are a Maryland resident and you wish to claim “Married,” you should complete the new form MW-507 (Employee’s Maryland Withholding Exemption Certificate Form) immediately and submit it to the Benefits & Payroll Liaison Branch (BPLB) in 31/B3C23 to be keyed into the payroll system. The myPay system has not yet been programmed to accept this information.; Additionally, if you are trying to claim more than ten exemptions or claim exempt from taxes, the BPLB is responsible for making these tax changes to your pay record. The MW-507 must be completed and sent to BPLB for processing.
7. USE OR LOSE ANNUAL LEAVE REMINDER
This is just a reminder that the 2008 leave year ends on January 3, 2009. Use or lose annual leave must be officially scheduled with your supervisor no later than November 22, 2008, and used no later than January 3, 2009.; For most employees, a maximum of 240 hours may be carried over from one leave year to the next; however, those employees in the Senior Executive Service have a maximum of 720 hours that may be carried over from one leave year to the next.
8. WHAT IS THE DIFFERENCE BETWEEN A FLEXIBLE SPENDING ACCOUNT (FSA) AND A HEALTH SAVINGS ACCOUNT (HSA)?
A Flexible Spending Account (FSA) is an employee benefit that allows you to set aside money, on a pre-tax basis, for certain health care and dependent care expenses. There are three types of FSA accounts: 1) Health Care FSA (HCFSA); 2) Limited Expense Health Care FSA (LEX HCFSA); and 3) Dependent Care FSA (DCFSA). If you wish to enroll in an FSA for the 2009 plan year, you must make your annual election during the open season on the FSAFEDS website. You may also enroll by calling 877-372-3337 (TTY: 1-800-952-0450). Your election amount is divided into allotments based on the number of pay dates in the plan year. Every pay date, an allotment is deposited directly into your FSA account. Expenses on your account for the 2009 plan year must be incurred by March 15, 2010; otherwise, your unused balance is forfeited.
A Health Savings Account (HSA) is an investment account available only to members who enroll in a High Deductible Health Plan (HDHP) under the Federal Employees Health Benefits Program (FEHB). Your HDHP credits a portion of your premium to the HSA. You also have the option to make pre-tax contributions to the account. The funds in your HSA can be used to pay for your plan deductible and/or qualified medical expenses that do not count towards your deductible. These accounts earn interest and roll over any remaining balance from year to year. The funds are yours to keep whether you change plans, leave Federal service or retire. Withdrawals can also be used for non-medical expenses; however you will be subject to a 10% penalty if you are under age 65.
Important Note: You cannot have both a HCFSA and an HSA.
9. CAN I MAKE THRIFT SAVINGS PLAN (TSP) CATCH-UP CONTRIBUTIONS?
In addition to regular TSP contributions, you may also make TSP Catch-up contributions (OPM), if you meet the following: 1) you are age 50 or over (or will be age 50 during 2009), 2) you are in pay status, AND 3) you are contributing an amount towards your regular TSP which will cause you to reach the $16,500 IRS limit by the end of the 2009 calendar year. The 2009 IRS limit for Catch-up contributions has increased to $5,500. Unlike regular TSP elections, a Catch-up election is only valid for one year. Therefore, if you want to make Catch-up contributions each year, you must make a new election each year. To make a Catch-up election for 2009, you may make your election at any time on/after December 7th by using myPay (DFAS). If you have questions, please notify your Benefits Contact.
10. MY FEDERAL EMPLOYEES HEALTH BENEFITS (FEHB) PLAN PROVIDES SOME DENTAL AND VISION COVERAGE. IF I ENROLL IN THE FEDERAL EMPLOYEES DENTAL AND VISION INSURANCE PROGRAM (FEDVIP), WILL IT REPLACE MY CURRENT COVERAGE?
No. Any coverage provided under your FEHB plan remains your primary coverage. FEHB will be the first payer of any benefits. FEDVIP will coordinate benefits and pay secondary to that coverage. It does not replace your existing coverage.
11. WHY DO I NEED A myPAY PIN?
It is very important to have access to your myPay account so that you can view your Leave and Earnings Statement each pay day. You must also use myPay to make changes to your home address, TSP contributions, direct deposit of pay, allotments, and Federal and state tax withholdings. Additionally, all open season health insurance elections must be accomplished using myPay. If you have misplaced your myPay PIN, you may request a new one in one of two ways. One of which is by selecting “New Pin” on the myPay (DFAS) web site. Please make sure you use the “Go” button to finalize your request. Using this method your PIN will be mailed to your current address of record within 7 to 10 business days.
If you need it sooner, your second option is to send a fax to 216-367-3549. You will need to include in your request your name, a daytime phone number, and a copy of your NIH ID, and you must sign the fax. Upon receiving your fax, the Defense Finance & Accounting Service (DFAS) will reset your PIN using the last 5 numbers of your SSN as your temporary PIN. You will then be able to log in within 3 days using your temporary PIN. Upon logging in, you will be prompted to reset your PIN.
If you encounter problems with your PIN or technical issues using myPay (DFAS), contact the DFAS Centralized Customer Support Unit toll-free at 1-888-332-7411. This support line is available Monday through Friday, 7:00 A.M. to 7:30 P.M. Eastern Standard Time. The Centralized Customer Support Unit can provide assistance on how to use the options available to you in myPay. The Centralized Customer Support Unit will also provide support for establishing and changing your PIN.
12. HOW CAN I GET IN TOUCH WITH MY BENEFITS CONTACT?
Your contact in the Benefits and Payroll Liaison Branch will be able to help you with a variety of issues pertaining to the health and life insurance programs, designating beneficiaries, the Thrift Savings Plan (TSP), calculating your retirement annuity estimate, working with you to pay a redeposit for prior civilian service if you previously withdrew your retirement funds, paying a deposit for prior civilian or military service for which retirement deductions were not withheld, etc. To find your benefits contact, review our list of contacts. In addition, the Benefits and Payroll Liaison Branch (BPLB) web site has a wealth of information regarding your Federal benefits. Human resource topics not related to your benefits are normally handled by your Client Services Division HR Representative.
