NJ State Employees Tax Savings Program

Employees enrolled in the State Health Benefits Program may elect to participate in the New Jersey State Employees Tax Savings Program. This plan is provided under Section 125 of the Internal Revenue Code and consists of three components:

The tax savings program is administered by Fringe Benefits Management Company (FBMC). Employees may call 800-342-8017for more information.

Premium Option Plan (POP)
Under the Premium Option Plan, any dental or medical premiums paid by an employee through payroll deductions will not be subject to federal income and FICA (Social Security and Medicare) taxes. Because this program invariably saves the employee tax dollars, enrollment in the plan is automatic unless the employee declines enrollment by completing and submitting a Premium Option Plan Declination Form.

Unreimbursed Medical Spending Account (UMSA)
The Unreimbursed Medical Spending Account allows employees to set aside "before-tax" dollars to pay for eligible medical and dental expenses not paid for by insurance. The minimum election per calendar year is $100 and the maximum is $2,500. Funds not used during the calendar year are forfeited.

Dependent Care Spending Account (DCSA)
The Dependent Care Spending Account allows employees to set aside "before-tax" dollars to pay for eligible dependent care expenses. Qualifying expenses are those dependent care expenses necessary to enable the employee and his/her spouse (if married) to work. Eligible dependents include children below age 13, a spouse (if a full-time student or physically or mentally incapable of self-care), or any other person considered a dependent for tax purposes who is incapable of self-care, regardless of age. The minimum election per calendar year is $250. The maximum election is $5,000 per calendar year for a married person filing a joint tax return; $2,500 maximum if married, filing separately. Funds not used in the calendar year are forfeited.

Open Enrollment Period for Premium Option Plan (POP), Unreimbursed Medical Spending Account (UMSA), and Dependent Care Spending Account (DCSA)
Each year during an open enrollment period for the Tax Savings Program (October 1 to 31), employees will be given the opportunity to review their personal financial circumstances and decide if they wish to participate in the program the next calendar year. Please note that participation in one tax year does not automatically carry over to the next tax year. Therefore, employees must file a new election form to participate in a Flexible Spending Account or must file a POP Declination Form if they do not wish to have premiums paid with before-tax dollars. All forms and informational brochures can be obtained in the Benefits Office in the Division of Human Resources.