There are two possible ways to receive CoBen Cash
in your paycheck. If the premiums for your health,
dental, and vision coverage add up to less than
your total CoBen allowance, you will receive the
excess as CoBen Cash in your paycheck. If you
have coverage through another source, such as
your spouse, you may opt to receive cash in lieu of
both your health and dental coverage or for your
health coverage only. To receive CoBen Cash in
lieu of benefits, you must complete the CoBen
Cash Enrollment Election Form.
These payments are considered taxable income
and are as follows:
- $155 - if you decline both the State-sponsored
health and dental plans
- $130 - if you decline only the State-sponsored
health plan
Note: You will not receive any CoBen Cash if you
decline dental coverage only.
CoBen Cash payments are included with your
regular paycheck and are subject to the same
payroll taxes (federal, state, and Social
Security) as your regular salary. However,
CoBen Cash payments are not considered
compensation for retirement purposes. This
additional cash is reported on your W-2
statement in the same tax year you received
the CoBen Cash payment.
Permanent Intermittent Employees (PIs)
Enrolled in CoBen Cash
If you're a permanent-intermittent employee and
want to receive cash in lieu of your health and
dental coverage or health coverage only, you must
enroll each plan year you want to participate. You
must complete the enrollment form (STD. 702)
during open enrollment, or as "newly eligible" after
open enrollment but prior to January 1.
In order to receive the cash payment, you also
must meet all the following criteria:
- be eligible to enroll in health and dental
insurance as of January 1, 2008 (i.e., you
qualified in the July 1 - December 31, 2007
control period);
- have a permanent-intermittent appointment
from January 1, 2008, through June 30, 2008;
and
- be paid for at least 480 hours worked from
January through June 2008.
If you're appointed to a permanent position with a
time base of half-time or more, you lose eligibility
for the PI cash payment. If you want to enroll as a
newly eligible permanent employee, you must
complete a new STD. 702 within 60 days after your
appointment.
Lump sum payment
If you enroll in a cash option for health and dental
benefits or health benefits only as a permanent intermittent
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, 2007, once your Personnel
Office certifies your eligibility based on the criteria
listed above, you will receive your cash option
payment as follows:
- $780 in lieu of health benefits;
- $930 in lieu of health and dental benefits.
These payments are made within 60 days after the
State Controller's Office receives the certification
from your personnel office.
Cost of Premiums Only
If you elect to receive cash in lieu of your
State-sponsored health plan but enroll in a State sponsored
dental plan, then your benefit allowance
will be the amount of your dental and vision
premium. In this situation, you will receive cash in
lieu of health, and your dental and vision
premiums will be fully paid. You will not have an
out-of-pocket dental and vision premium cost.
This means you will not receive the difference
between the cost of the premiums and the total
allowance applicable to you. Your allowance
amount, when not enrolled in all three benefits, is
only that amount for the cost of the premiums or
the total allowance, which ever is less.
