I-21A-7 & 21B-17
|Effective Date:||Expiration Date:||Chapters:|
|Jan. 29, 2013||When Superseded||21|
The purpose of this instruction is to provide District government agencies and employees with the updated Table of Permissible Changes for employees covered under the Federal Employees' Health Benefits Program (FEHB) and the District of Columbia Employees' Health Benefits Program (DCEHB) who are receiving premium conversion tax benefits.
Premium conversion tax benefits allow an employee to allot a portion of his or her salary back to the employer, which the employer then uses to pay the employee's health insurance coverage. This allotment is made on a pre-tax basis, which means that the money is not subject to federal income, Medicare, or Social Security taxes. In most States and many localities that impose an income tax, the allotment will not be subject to those taxes as well, therefore, increasing an employee's take-home pay and lowering his or her annual tax burden. The District government will continue to contribute its share towards the total premium cost.