It is an option offered under the State's FlexElect Program and governed by the Internal Revenue Code (IRC) Section 125. The Cash Option allows State employees to receive cash in lieu of their State-sponsored health and/or dental benefits. To be eligible for a Cash Option, you must have health and/or dental coverage through another source such as a spouse, domestic partner, or former employer.

Depending on which cash option you enroll in, you'll receive:

• $128/month in lieu of medical benefits;
• $12/month in lieu of dental benefits; or
• $140/month in lieu of medical and dental benefits.

Keep in mind that the money is considered taxable income.

You're eligible to enroll in the Cash Option if you have a permanent position that is half time or more. If you have a temporary position, you're eligible if you have a mandatory right of return to a permanent position that is half-time or more. Listed below are differences in the eligibility criteria for certain employees:

• If you're a permanent-intermittent employee, you may enroll in the FlexElect cash option for a six-month lump sum cash payment.
• If you're in Bargaining Unit 6, you may not enroll in the cash option for dental benefits. This restriction is set by the union's Benefit Trust. However, you may enroll in the cash option for health benefits.
• If you are an excluded employee or in bargaining units 2, 7, 8, 16, 17, 18, and 19, your cash option is offered through the Consolidated Benefits Program (CoBen), not FlexElect. For more information please see CoBen Cash Option.

You can enroll in the Cash Option within 60 days of becoming "newly eligible" or during the annual fall open enrollment period. The open enrollment period is normally held each year during the month of September through mid-October. Keep in mind that once you enroll in the Cash Option, your enrollment will continue for each plan year and you are not required to re-enroll each year, unless you want to cancel or change your enrollment.

You're newly eligible if:

• you're a new State employee hired after the open enrollment period;
• you were on an approved leave of absence during the entire open enrollment period;
• you experience a change in status described in the FlexElect Program Handbook that permits you to enroll as newly eligible; or
• your time base/employee designation changes from one that was ineligible to one that is eligible, or you change from a Permanent-Intermittent position to a permanent position with a time base of half-time or more.

You need to complete the Cash Option Enrollment Authorization (STD 701C). The STD. 701C is available in the FlexElect Program Handbook, from your Personnel Office, and also on this website. (A link to the STD. 701C is located under Related Forms.)

If you're newly eligible and want to enroll in the Cash Option, you must submit the enrollment form to your Personnel Office within 60 days of becoming newly eligible. Correctly completed forms received at the State Controller's Office by the 10th of the month are effective the 1st of the following month. If you enroll during the annual open enrollment period, then your effective date is the first of the following year, on January 1st.

No. If you're a Permanent-Intermittent employee and want to receive cash in lieu of your health and/or dental benefits, you must enroll each plan year you want to participate. You must complete the enrollment form (STD. 701C) during open enrollment or as "newly eligible" after open enrollment but prior to January 1.

Lump sum payment: If you enroll in a cash option for health and/or dental benefits as a PI employee, you will receive your payment in a lump sum. The amount is for the period of January through June; you are not eligible for the cash option for the July through December period.

After June 30, once your Personnel Office certifies your eligibility, you will receive your lump sum cash option payment as follows:

Depending on which cash option you enroll in, you'll receive:

• $768 in lieu of health benefits;
• $72 in lieu of dental benefits; or
• $840 in lieu of health and dental benefits.

Keep in mind that the money is considered taxable income.

If you enroll in the Cash Option, a $2.50 fee is deducted from your after-tax salary each month.

Once you enroll in the Cash Option, you can't cancel or change your enrollment during the plan year unless you experience a change in status, called a "permitting event" (e.g., birth of child, divorce, loss of employment, change in provider). There is a complete list of the "permitting events" in the FlexElect Program Handbook.

If you enroll in the Cash Option in lieu of dental benefits, you may not re-enroll in a State-sponsored dental plan for three "plan years." (Plan years run from January 1 through December 31.) The only exception is if you lose your other dental coverage. In this instance, you would be allowed to re-enroll in a State sponsored dental plan. At the end of this three-year period, you may enroll in a dental plan during the next open enrollment period.

If you need more information, check with your Personnel Office to obtain a copy of the FlexElect Program Handbook.