Employers' Pensions and Benefits Administration Manual (EPBAM)
   

 

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Tax$ave


Tax$ave is a benefit program that is made available under Section 125 of the Federal Internal Revenue Code. Tax$ave allows eligible employees to set aside before-tax dollars to pay for certain medical, dental and dependent care expenses. By using before-tax dollars to pay these expenses, an employee may save money by reducing the federal tax liability on annual income.

Those eligible to participate in plans administered by the NJ Division of Pensions and Benefits are employees of the State, State colleges or universities, or other State agencies who are eligible to participate in the State Health Benefits Program (SHBP). 

Tax$ave consists of three components.

  1. The Premium Option Plan (POP) allows employees to pay any State Health Benefits Program medical and/or dental premiums with before-tax dollars.

    In addition, there are two "Flexible Spending Accounts" (FSAs):


  2. The Unreimbursed Medical Spending Account (UMSA) plan allows employees to set aside money to pay for qualified medical and dental expenses not paid by any group benefits plan under which they or their dependents are covered.

  3. The Dependent Care Spending Account (DCSA) plan allows an employee to set aside money to pay for anticipated expenses related to dependent care required to permit the employee and spouse to work.

Fact Sheet #44, Tax$ave, and the annual Tax$ave Open Enrollment newsletter provide additional information about Tax$ave.

 

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Last Updated: February 22, 2006