CAFETERIA PLAN FAQs:

What is a "Cafeteria Plan?"
Can I change my benefit elections and/or payroll deductions?
Since I am paying less in social security taxes, will my benefits be less?
What happens if I go on unpaid leave of absence (LOA)?

Q: What is a "Cafeteria Plan?"
A: Johnson County Government's Cafeteria Benefit Program provides you with an opportunity to tailor the benefits package to meet your needs and reduce taxable income. Payroll deductions are based on the benefit selections you make in the areas of health and dental insurance, dependent care assistance, and/or medical reimbursement. Payroll deductions for these benefits are then made before taxes, which provides you with more take-home pay.  

Because the Cafeteria Program allows pre-tax payroll deductions, it must abide by Section 125 IRS Regulations. Therefore, it is important to review enrollment information carefully before making benefit selections.

Q: Can I change my benefit elections and/or payroll deductions?
A: Elections made as a new employee or during open enrollment are effective for the entire calendar year. If you are already enrolled in one of our plans, you may not change or revoke your coverage category outside of the annual open-enrollment period unless you have a change in family status. If there is a change in family status, benefit election changes can only be made if the changes are necessary or appropriate as a result of the family status change. To make benefit changes due to a change in family status, you must complete all appropriate benefit forms within 30 days after the family status change occurs. If you fail to do so, your next opportunity to make changes is during open enrollment for coverage effective for the next calendar year, beginning January 1.

Q: Since I am paying less in social security taxes, will my social security benefit be reduced?
A: Yes. However, this will have a minimal effect on social security benefits. Also, because you should have more take home pay, you have the opportunity to increase your personal savings and/or invest in deferred compensation - an excellent way to enhance your savings for retirement.

Q: What happens if I go on unpaid leave of absence (LOA)?
A: Health and Dental Coverage: Once you are no longer receiving a County paycheck, you may be required to pay all or part of your health and dental premiums directly to OFM-Benefits, depending on the type of leave (Family Medical, Personal, etc.). Please contact OFM-Benefits to determine what your payment, if any, will be. 
 
If payments are required, they must be received on or before the first of the month for that month's coverage. For example, if you need coverage for the month of April, your check must be received by April 1. If a check is not received, then coverage will be terminated and COBRA continuation will be offered. If COBRA is not accepted, then you will not be eligible to participate in the plan until January 1 following your return to full-time employment with the County.

A: Dependent Care: Payments can not be accepted for Dependent Care while on unpaid leave. Since payments are not received, participation in Dependent Care terminates. However, participation will resume upon your return to work. If you wish to change your deduction, then you must complete and return an enrollment form to OFM-Benefits within 30 days returning to work.

A: Med Bank: You may maintain your Med Bank account by sending your monthly contributions directly to OFM-Benefits. Payment must be received on or before the first of the month for that month's coverage. For example, if you need to pay contributions for the month of April, then your check must be received by April 1. If payments are not received, then participation in Med Bank terminates. However, participation will resume upon your return to work. If you wish to change your deduction, then you must complete and return an enrollment form to OFM-Benefits within 30 days returning to work.