What can benefits-eligible faculty and staff members do to limit the impact of flat or decreased levels of employer contributions to employee benefits?
Benefits-eligible faculty and staff members can enter into salary-reduction agreements to make tax-deferred contributions to their retirement accounts. Generally, the maximum tax-deferred contribution limit for calendar year 2009 is $16,500 ($22,000 for faculty and staff age 50 or over). Benefits-eligible faculty and staff members can also make pre-tax contributions to Section 125 flexible spending accounts. Contributions are based on elections made at the end of each calendar year and take effect at the beginning of the subsequent calendar year. It should be noted that these elections have already been made for calendar year 2009. New elections may be made in December 2009 for calendar year 2010. The Section 125 flexible spending accounts may be used to fund dependent care and/or eligible medical expenses not covered by insurance and not reimbursed by any other benefit plan. The employee share of group health insurance premiums is also deducted on a pre-tax basis. The impact of these
Related Questions
- Were reductions in the salaries of existing faculty and staff members considered as an alternative to reductions in employee benefits pools?
- Can individual faculty and staff members elect a reduction in salary rather than a decrease in employee benefits?
- How can staff and faculty members get involved?
