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The Pre-Tax Contribution Program

Program Overview

The Pre-Tax Contribution Program (PTCP) allows employees to have their share of the NYSHIP health insurance premium deducted from their paycheck before taxes are withheld, which could lower their tax liability. In exchange for the tax savings, PTCP enrollees are required to maintain the same pre-tax health insurance deduction throughout the entire plan year (unless a pre-tax qualifying event occurs - see below).

Eligibility Requirements

To participate in PTCP, you must:

  • be an active State employee
  • receive regular paychecks
  • have your premium deducted from your paycheck (vs. being billed directly)

Note: COBRA enrollees and Young Adult Option enrollees are not eligible to participate in PTCP.

Enrolling in PTCP

You must initially decide whether to participate in PTCP when you are first eligible for NYSHIP health insurance benefits. Once enrolled in the program, assuming no pre-tax qualifying events occur, you must wait until the annual PTCP Election Period (which coincides with the annual Option Transfer Period) to change your deductions or your status.

It is not necessary to reenroll in the program each year. No action is required to maintain your current PTCP status.

Employees who do not participate in PTCP may have greater flexibility to make changes to their NYSHIP coverage during the year, as long as those changes are consistent with NYSHIP rules.

PTCP Qualifying Events

Under Internal Revenue Service (IRS) rules, PTCP enrollees may only change their health insurance deduction during the tax year if they experience a PTCP qualifying event.

Change in marital status

Change in number of dependents

Change in your (or your dependent's) employment status that affects eligibility for health benefits

Change in your dependent's status that affects eligibility for health benefits

Change in your (or your dependent's) place of residence or worksite that affects eligibility for health benefits

Significant change in health benefits and/or premium under NYSHIP

Significant change in health benefits and/or premium under your (or your dependent's) other employer's plan

COBRA events

Judgement, decree or order to provide health benefits to eligible dependents

Medicare or Medicaid eligibility

HIPAA special enrollment rights

If you experience a PTCP qualifying event and wish to make a change, complete and submit a Health Insurance Transaction Form. The change request must be consistent with the event and submitted within 30 days of the event (or within the waiting period if newly eligible).

How to Change Your PTCP Status

If you want to change your PTCP election for 2023, complete and submit a Health Insurance Transaction Form prior to the PTCP Election Period deadline.

Questions?

Additional information about the Pre-Tax Contribution Program can be found in the following publications:

Planning for Option Transfer
Health Insurance Choices for 2023
General Information Book (NY Active)
General Information Book (PE Active)
New York State Employee Cafeteria Plan

 

Please Note: This is a general overview only. Prior to enrolling in PTCP or changing your PTCP status, it is strongly recommended that you review the publications and resources listed above for more detailed information about the program.