The Pre-Tax Contribution Program
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).
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
Judgement, decree or order to provide health benefits to eligible dependents
Medicare or Medicaid eligibility
HIPAA special enrollment rights
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.
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.