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SUBFINDER »
Benefits Handbook
Lincoln Public Schools Employee:
This booklet provides information on Lincoln Public Schools (LPS) employee benefits for the 2005-2006 school year. Please read this information carefully. Some of the important changes for 2005-2006 are listed for your review.
New employees may enroll in any of the insurance plans in which they are eligible within the first 31 days of employment. Please read the appropriate section for deadlines, details and limitations.
Current employees may only enroll in Blue Cross/Blue Shield (BCBS) PPO within 31 days of a change in family status. Current employees may enroll in dental, vision, life insurance and/or disability insurance during September; and dental, vision, or life insurance within 31 days of a change in family status. Life and disability may require medical underwriting. Please read the appropriate sections for details on restrictions, deadlines and effective dates.
"Insurance Day" is Thursday, August 18, 2005, from 8:00 a.m. to 6:00 p.m. in the Board Room at LPSDO. There are major changes in the BCBS prescription drug program. BCBS will have presentations regarding these changes at 10:00 a.m. and 2:00 p.m. on that day.
The Benefits section of the LPS website has current updates and information. Call Human Resources, 436-1593, if you have questions.
The following information does not substitute for the complete benefits summary or policies published by the insurance companies and should not be considered as the contract.
Changes
for 2005-2006...What's New?
Insurance Plans
Who is Eligible?
When Can I Enroll?
When Will Insurance Begin?
When Can I Cancel Insurance?
Change in Family Status
Health
Insurance Portability and Accountability Act (HIPAA)
Continuation of Insurance (COBRA)
Health Insurance
Dental Insurance
Disability Insurance
Vision Insurance
Life Insurance
Death Benefit
Section 125 Plan (Medical & Dependent
Care)
Tax Deferred Annuities
Automatic Payroll Deposit
Savings Bonds
Credit Union
Nebraska School Employees' Retirement System
Continuum
The following information does not substitute for the complete benefits summary or policies published by the insurance companies and should not be considered as the contract.
What's New & Reminders for 2005-2006...
Blue Cross/Blue Shield
For Current Employees: The EHA Blue Cross/Blue Shield (BCBS) PPO monthly health premiums will change September 1, 2005. Click here for rates. To find your total monthly cost for premiums, deduct fringe/super fringe from the total monthly premiums. The district's contribution (fringe/super fringe) is determined in the negotiations process or the "meet and confer" process for each employee group and can be found in the negotiated agreements, handbooks and/or addendums which are on the LPS website. The increase in premium will be reflected on your August 31, 2005 paycheck.
A reminder: You can only enroll in Blue Cross/Blue Shield PPO health insurance within the first 31 days of employment or within 31 days of a change in family status (marriage, divorce, death, birth of a child, change of spouse's employment, etc. Click here for more details.)
BCBS PPO Health Insurance Benefit Changes and Reminders:
- Changes in Rx Nebraska Prescription Drug Program
- Copay and coinsurance amount for in-network mental illness and/or substance abuse treatment will increase. The copay for in-network outpatient treatment will increase to $30 per therapy visit. The network coinsurance for outpatient treatment will increase to 25%. Out-of-network copay and coinsurance amounts are not changing.
- There is no open enrollment for health insurance. New employees and those who have qualifying events under HIPAA may enroll within 31 days.
- Early retiree program reminder: The age to qualify for the early retiree program is 50.
Change in Rx Nebraska Prescription Drug Program
Members will be responsible for paying a certain percentage of the allowable charge for covered prescription drugs instead of a fixed copay. Each tier features a coinsurance minimum and maximum, which is the least and most out of pocket a member will pay per 30-day supply of each covered prescription.
Generic drugs: 25% of allowable charge - member pays at least $5 and no more than $25
Formulary drugs: 25% of allowable charge - member pays at least $25 and no more than $50
Non-formulary drugs: 50% of allowable charge - member pays at least $50 and no more than $75
Specialty drugs: In-network: 25% of allowable charge - member pays at least $50 and no more than $100
Specialty drugs: Out-of-network: 50% of allowable charge - member pays at least $150 and no more than $300
Flex Plan – Medical and/or Dependent Care
If you participate in the flexible benefit plan, remember you must re-enroll every year. If you were in the plan for the 2004-05 plan year, you will automatically receive a new enrollment form; however, if you don’t receive the form by September 1, please call the Benefits Department at 436-1593 or 436-1578.
Term/Permanent Life Insurance
Employees may purchase term or permanent insurance for themselves and also term or permanent life insurance for their spouse. Term life insurance for dependent children is available (until age 19 or until age 25 if full-time student) for $2.82/month for $10,000 of coverage. The term life insurance carrier is Jefferson Pilot, and the permanent life insurance carrier is Security Financial Life Insurance Co. Call Human Resources, 436-1593 or 436-1578 for a life insurance enrollment packet, or Mike Meyer at 434-7256 for more information.
Lincoln Public Schools offers health, dental, vision, disability protection, and term and/or permanent life insurance. Premiums for health, dental, vision, and up to $50,000 term life are not subject to federal income tax, state income tax, or Social Security/Medicare (FICA). Premiums on term life (above $50,000) and permanent life insurance are taxed. Employees may choose to pay disability insurance with after-tax dollars.
To be eligible for the various insurance programs, staff must have a minimum work assignment as shown:
Classified Staff |
Certificated Staff |
|
| Health/Dental Insurance | 17 1/2 hours/week |
.4 FTE |
| Disability Insurance | 20 hours/week |
.5 FTE |
| Term/Permanent Life Insurance, Flex Plan and Vision Insurance | 15 hours/week |
.375 FTE |
When combining fringe and/or “super” fringe and salary, your paycheck must be enough to cover the entire premium(s). Substitutes/hourly employees are not eligible.
Health Insurance
Blue Cross/Blue Shield PPO
- The first 31 days of employment;
- Within 31 days of a change in family status (“special enrollee”). Click here for change in family status explanation.
With Blue Cross/Blue Shield (BCBS) PPO you will be subject to a 12-month waiting period for pre-existing conditions, decreased by creditable coverage. (Some of the terms used above are defined below.)
Click here for the deadline to turn in your enrollment form(s) and effective date of insurance .
Dental Insurance
- The first 31 days of employment;
- During September; or
- Within 31 days of a change in family status. (There are certain limitations. For example, if you have single dental and get married, you can change to family within 31 days provided you also change your health coverage to family. Otherwise, you must wait until September. Please call the Benefits Department if you have questions.)
Disability Insurance
- The first 31 days of employment.
If you choose not to enroll in disability insurance within the first 31 days of employment and wish to apply for the disability insurance at a later time, you will be subject to medical underwriting and could be denied coverage.
Life Insurance
- The first 31 days of employment;
- The month of September ;*
- Within 31 days of a change in family status. *
*If you do not enroll within the first 31 days of employment, you will be subject to medical underwriting if enrolling in coverage above $10,000 and could be denied. New employees may enroll in up to $100,000 term life insurance with no medical underwriting.
Vision Insurance
- The first 31 days of employment;
- During the month of September. If you enroll after
the first 31 days of employment, you will pay a fee of
$25 that will be deducted from your paycheck. (See
Vision Care Coverage section for more details.)
New LPS employees - See Health Insurance - New Employees.
Current employees: Insurance will begin October 1, 2005, if the enrollment/change form is received in Human Resources, Benefits Department, by September 10 for the following:
- BCBS PPO dental enrollment/change forms
- BCBS PPO health enrollment/change forms (as a "special enrollee")
- Vision Service Plan enrollment/change forms
Forms received after September 10 will be effective November 1.
If applying for disability, permanent life or increasing term life by more than $10,000, the effective date will be the first of the month following approval and the first premium deduction.
Because of the Section 125 plan of the Internal Revenue Code, cancellations can only be made in September, unless there is a change in family status. Click here for an explanation of a family status change.
Requests to cancel insurance must be received prior to the 15th of the month for insurance to end the last day of the same month. Cancellations must be in writing. Call Human Resources to request a cancellation form and/or Change of Family Status form.
What is a change in family status?
A change in family status may include marriage, divorce, death, birth, or spouse changing jobs, termination of employment, etc. The coverage change must be consistent with your family status change and must be made within 31 days of the family status change. Call Human Resources, 436-1578 or 436-1593, to request a Change in Family Status form or for more information. You also may have rights under the Health Insurance Portability & Accountability Act of 1996 (HIPAA). See below for details.
Health Insurance Portability & Accountability Act (HIPAA)
Federal legislation (HIPAA) was created to protect families from losing their health insurance when a family member changes or loses his or her job by making it easier to obtain new coverage. New employees as well as those leaving the district are affected and should be aware of their rights under this Act. Changes in group health plans include restrictions on pre-existing condition limitations, special enrollment periods, and a prohibition on discrimination in regard to insurance eligibility based on health status.
Beginning June 1, 1997, LPS is required to make provisions for participants in LPS group health insurance to receive a certificate of prior coverage when their coverage ends or when they leave the school district. If you are declining enrollment for yourself or your dependents (including your spouse) because of other health insurance coverage, you may in the future be able to enroll yourself or your dependents in this plan, provided that you request enrollment within 31 days after your other coverage ends. In addition if you have a new dependent as a result of marriage, birth, or adoption, you may be able to enroll yourself and your dependents, provided that you request enrollment within 31 days of the event.
How can I continue insurance? (COBRA)
Federal legislation known as the Consolidated Omnibus Budget Reconciliation Act of 1985 (COBRA) requires group health plans to allow the employee, or qualified beneficiaries where applicable, to continue group coverage for 18 months upon the occurrence of a qualifying event such as termination of employment or reduction in hours. For a disability, continuation can be up to 29 months; or 36 months in the case of death, divorce or legal separation, or dependent ceases to be a dependent. Should a qualifying event occur while covered under the group plan, the employee is responsible for notifying the employer. Contact Human Resources, 436-1578 or 436-1593, if you have questions regarding continuation of insurance.
Definitions
Creditable Coverage - Includes basically any kind of comprehensive health insurance coverage, whether group or individual coverage, including Medicare and Medicaid. Previous coverage will not be credited if there was any break in such coverage that lasted for more than 63 days. A waiting period is not treated as a break in coverage.
Waiting Period - A period of time during which no benefits are available for services provided for a pre-existing condition.
Pre-Existing Condition - A mental or physical condition, regardless of causation, for which medical advice, diagnosis, care or treatment was recommended or received within the previous six months. Pregnancy is not considered a pre-existing condition.
Special Enrollee - If you decline to enroll in insurance within the first 31 days of employment and later wish to enroll because of a loss of creditable coverage due to a change in family status, you are considered a special enrollee. Examples include marriage, divorce, birth/adoption, death of a spouse, change in spouse's employment, and exhaustion of COBRA.
If you are a New Employee: And your first day of employment is between August 22 and 31, 2005:
- Submit your enrollment form to Human Resources no later than September 10 for an effective date of October 1. The first deduction will be taken from your September 30 paycheck.
- For new employees: If you need insurance coverage to start September 1, you will need to sign a "Waiver" form available from Human Resources, and we will deduct two premiums from your September 30 paycheck to cover September and October. The enrollment and Waiver forms must be submitted prior to September 1 for a September 1 effective date. Call 436-1593 or 436-1578 for a Waiver form.
If your first day of employment is September 1, 2005 or later:
- Submit your enrollment form to Human Resources prior to the 10th day of the month for an effective date of the first day of the next month. If you submit your enrollment form after the 10th of the month, your effective date will be the first of the month following the first 31 days of employment.
- EXAMPLE 1: Your employment date is September 2. If you submit an enrollment form to Human Resources prior to September 10, your effective date would be October 1.
- EXAMPLE 2: Your employment date is September 15. You submit an enrollment form to Human Resources on September 30, which is within the first 31 days. Your effective date is November 1. In this example, if you need October 1 coverage, we will take two premiums from your October 30 paycheck, which gives you coverage for October and November, provided the enrollment is dated and received in Human Resources prior to October 1. A Waiver form must be completed.
Remember that enrollment forms must be completed within the first 31 days of employment or within 31 days of a change in family status.
The following should not be considered to be the contract. New employees receive more information from the insurance companies in their employment packet. Employees on staff should contact Human Resources for detailed brochures and enrollment forms.
BCBS Blue Preferred (PPO)
Employees who enroll in BCBS BluePreferred (PPO) within the first 31 days of employment will have a 12-month waiting period for pre-existing conditions. This 12-month period will be decreased by any previous creditable coverage. A pre-existing condition is a mental or physical condition, regardless of causation, for which medical advice, diagnosis, care or treatment was recommended or received within the previous six months. Pregnancy is not considered a pre-existing condition.
BCBS PPO is a preferred provider organization in which a special arrangement has been established between insurers and a network of hospitals, physicians and other health care professionals to pay for health care services. You may choose from outside the network, but your out-of-pocket expenses will be higher.
BCBS PPO providers are periodically added to or deleted from the program and some may not take new patients. Ask your providers whether they participate in the BCBS PPO program. A directory is available on the BCBS website or call Human Resources for a PPO directory.
LPS employees (other than Administrators) have the $250 deductible (in network) for individual, $500 deductible for family, then 80%-20% co-insurance to an individual maximum of $1,500, $3,000 for family; Out of Network: $500 deductible for individual, $1,000 deductible for family, then 70%-30% co-insurance to an individual maximum of $3,000, $6,000 for family.
Prescription Drug Program: This plan has a four-tier drug card benefit. Members will be responsible for paying a certain percentage of the allowable charge for covered prescription drugs. Each tier has a coinsurance minimum and maximum per 30-day supply.
| Classification | Coinsurance Paid by Member | Coinsurance Minimum and Maximum per Prescription |
| Generic | 25% of allowable charge | Member pays at least $5 and no more than $25 |
| Formulary | 25% of allowable charge | Member pays at least $25 and no more than $50 |
| Non-formulary | 50% of allowable charge | Member pays at least $50 and no more than $100 |
| Specialty Drugs | In-network:25% of allowable charge |
In-network: Member pays at least $50 and no more than $100 |
The Rx Nebraska out-of-pocket maximum is $2,500 single; $5,000 family, per calendar year.
Health Insurance Premiums
Individual $346.69/month (includes 80%A&B, 50%C dental)
Family $947.53/month (includes 80%A&B, 50%C dental for employee)
These rates are effective September 1, 2005.
The monthly premiums for Administrators ($500 deductible for single and $1000 deductible for family) are $330.69 for single and $902.43 for family. This change is effective September 1, 2005.
You may enroll in BCBS PPO at the following times:
- The first 31 days of employment. There is a 12-month waiting period for pre-existing conditions decreased by previous creditable coverage.
- "Special" enrollment (within 31 days of the event triggering a special enrollment, such as marriage, divorce, birth/adoption, change in spouse's employment, etc.) There is a 12-month waiting period for pre-existing conditions decreased by previous creditable coverage.
In order to be eligible for the BCBS Direct Bill plan as an early retiree, you, your spouse and dependents must have a minimum of 5 years of continuous coverage under the BCBS group health plan immediately proceeding ceasing employment, and be at least 50 years of age. Contact Human Resources, 436-1593 for more information.
Detailed brochures and enrollment forms are available in Human Resources, 436-1593 or 436-1578 or call BCBS Customer Service at 1-800-642-6004. B/BS of Nebraska's web site address is www.bcbsne.com/members.
Blue Cross/Blue Shield PPO
Dental Plan Options:
ABC PPO Dental
(Option 2 in the Dental Coverage brochure)
80% A&B, 50% C
In Network |
Out-of-Network |
|
COVERAGE A: Preventive & Diagnostic Dentistry |
||
| Calendar Year Deductible | None |
None |
| Coinsurance | 20% of allowable charges |
30% of allowable charges |
| COVERAGE B: Maintenance & Simple Restorative Dentistry; Oral Surgery, Periodontic & Endodontic Services |
||
| Calendar Year Deductible | None |
$50 per family |
| Coinsurance | 20% of allowable charges |
30% of allowable charges |
COVERAGE C: Complex Restorative Dentistry |
||
| Calendar Year Deductible | $25 per family |
$50 per family |
| Coinsurance | 50% of allowable charges |
50% of allowable charges |
ABCD PPO Dental
(Option 4 in the Dental Coverage brochure)
80% A,B&C, 50% D
In Network |
Out-of-Network |
|
COVERAGE A: Preventive & Diagnostic Dentistry |
||
| Calendar Year Deductible | None |
None |
| Coinsurance | 20% of allowable charges |
30% of allowable charges |
| COVERAGE B: Maintenance & Simple Restorative Dentistry; Oral Surgery, Periodontic & Endodontic Services |
||
| Calendar Year Deductible | None |
None |
| Coinsurance | 20% of allowable charges |
30% of allowable charges |
COVERAGE C: Complex Restorative Dentistry |
||
| Calendar Year Deductible | None |
None |
| Coinsurance | 20% of allowable charges |
30% of allowable charges |
COVERAGE D: Orthodontic Dentistry |
||
| Calendar Year Deductible | None |
$25 per family |
| Coinsurance | 50% of allowable charges |
50% of allowable charges |
| Contract benefit maximum | $2,000 per person |
$2,000 per person |
Option 2 dental is included with an individual BCBS health insurance policy if your health insurance is purchased through LPS. If you have a BCBS family health policy through LPS, Option 2 dental is provided to the policyholder (employee) only . There is an annual deductible of $25 in network ($50 out of network) for level C services, whether enrolled in single or family dental.
BCBS Monthly Dental Premiums
Option 2 Dental (80% A%B, 50% C) |
Option 4 Dental (80% A,B&C, 50% D) |
||||
with LPS health |
without LPS health |
with LPS health |
without LPS health |
||
Individual |
* |
$16.47 |
Individual |
$20.67 |
$37.14 |
Family |
$41.99 |
$58.46 |
Family |
$79.59 |
$96.06 |
* Included in the health insurance for policyholder
- A BCBS dental policy cannot be canceled during the plan year except in the case of separation of employment .
- Current employees who are enrolled in BCBS dental insurance with LPS and cancel the plan must wait two years before enrolling again regardless of the reason for the cancellation.
For a Dental PPO Directory:
- Check the bcbsne.com website (Provider Directories)
-
Call your dentist to see if they are a BCBS Participating Provider
-
Call Human Resources, 435-1578 or 436-1593, or
-
Call BCBSNE at 1-800-642-6004.
Current Employees:
If you wish to change BCBS dental options, you must complete a BCBS Change Form by September 10 and the new plan would be effective October 1.
Call 436-1578 or 436-1593 for a detailed brochure, or click here for more information.
The disability insurance policy through Jefferson Pilot pays 60% of gross salary and begins after sick leave is exhausted.
Disability caused by pregnancy or complications of pregnancy are covered under this plan.
Rates range from .41 to .85 per month per $100 of base monthly salary depending on the amount of accumulated sick leave.
Example: Accumulated Sick Leave 10 days
Plan 1 Factor .0085
Gross Monthly Salary $2,000
$2,000 X .0085 = $17.00 monthly cost
| Plan |
Accumulated Sick
Leave (Days) |
Factor |
| 1 |
0 to 10 |
.0085 |
| 2 |
11 to 20 |
.0081 |
| 3 |
21 to 30 |
.0072 |
| 4 |
31 to 45 |
.0070 |
| 5 |
46 to 60 |
.0067 |
| 6 |
61 to 90 |
.0066 |
| 7 |
91 to 180 |
.0043 |
| 8 |
Over 180 |
.0041 |
All new employees may participate in the disability insurance program regardless of medical history and do not need to complete a health questionnaire if enrolling within the first 31 days of employment. Applications received by the 10th of the month will have a first of the following month effective date. Employees must be actively at work the date the coverage would be effective.
Continuing employees who wish to enroll in disability insurance are required to complete a health questionnaire available from Human Resources. Premiums will be deducted if/when your application is approved. The effective date is following approval and deduction of the first premium.
A disability caused or contributed to by a pre-existing condition will not be covered until the employee has performed the main duties of his/her regular occupation on a full-time basis for five consecutive days following his/her effective date.
Employees must work at least 20 hours a week (.5 FTE for certificated staff) in order to enroll.
Disability insurance is part of the school district's flexible benefit plan which means you do not pay any taxes on the premiums. If you should become disabled, however, any benefits you receive will be taxable. If you wish to avoid being taxed on any benefits received, it is necessary to sign a waiver form available from Human Resources. This change can be made only during open enrollment; however, you only need to sign a waiver form once.
If you've forgotten whether or not you've signed a waiver form, look on your paycheck. If the disability premium is listed in "Deductions (After-Tax)" and you become disabled and eligible for a disability benefit, your benefit would NOT be taxed since you are paying taxes on your monthly premium.
If the disability premium is listed in “Insurance (Pre-Tax)” and you became disabled, your disability benefit would be taxable since your monthly premium is NOT taxed.
The above information is a brief explanation of the disability plan. It should not be considered to be the contract. Please refer to the Disability Brochure available from Human Resources for more details.
Vision Service Plan (VSP) benefits include an eye exam each year, lenses each year if needed, and frames every two years. There is a $25 co-payment for materials and $10 co-pay for the exam. You may select in-network doctors or you can go out-of-network and receive less benefits.
Employee $12.44 per month
Employee plus one $18.04 per month
Employee & Family $32.35 per month
Call your doctor directly to schedule an appointment. Tell the doctor's office you are a VSP member when scheduling your appointment. VSP does not issue ID cards.
You can use VSP's web site, www.vsp.com to obtain a doctor list. Go to "members and consumers". Doctor lists are available from Human Resources, 436-1578, or call VSP at 1-800-877-7195
For current members: you may check their website to see when you are available to receive your next exam, view benefit information, etc.
There will be a fee of $25 assessed for employees who sign up after the initial eligibility period (the first 31 days of employment) or for employees who cancel their vision insurance and wish to re-enroll.
VSP insurance cannot be canceled during the plan year except in the case of separation of employment. Please call VSP at 1-800-877-7195 if you have questions regarding your policy. Call Human Resources for an enrollment form and more information.
Term life premiums through Jefferson Pilot are $1.90/month per $10,000 of coverage with additional $10,000 increments to $50,000; also $100,000, $150,000, $200,000, $250,000 and $300,000. The policy has a double indemnity clause for accidental death. You must work a minimum of 15 hours per week to be eligible to enroll.
| Coverage |
Rate per Month |
| $10,000 |
$1.90 |
| $20,000 |
$3.80 |
| $30,000 |
$5.70 |
| $40,000 |
$7.60 |
| $50,000 |
$9.50 |
| $100,000 |
$19.00 |
| $150,000 |
$28.50 |
| $200,000 |
$38.00 |
| $250,000 |
$47.50 |
| $300,000 |
$57.00 |
According to IRS regulations, the difference between the premiums you should pay as published in the IRS Uniform Premiums Table and the actual premiums you are paying will be reported on your W-2 Form as taxable income, and taxes on the additional income will be withheld monthly. This regulation applies to coverage of $100,000 and above and affects you if over the age of 50.
New employees have 31 days to enroll in up to $100,000 without evidence of insurability (E of I). Current Employees: E of I is required for increasing the coverage by more than $10,000. Call 436-1593 or 436-1578 for an enrollment/change form, E of I and/or change of beneficiary form(s).
Employees may purchase permanent insurance for themselves or term or permanent life insurance for their spouse/dependents. Call 434-7256 for more information.
Your permanent/term life insurance ends with your last paycheck. If you wish to convert or continue the policy, this must be done within 31 days after coverage ends. If you would like more information, call Mike Meyer at 434-7256.
Please remember to change your beneficiaries if your family status changes! Forms are available in Human Resources.
The Board of Education provides a death benefit to the beneficiary you designate when you are first hired by LPS. Qualifications, eligibility for coverage and amount are described in the classified/certified handbooks and/or negotiated agreements.
The benefit is provided to you at no charge. Please notify the Human Resources Office of any changes in beneficiary that may have occurred since you began employment with LPS.
LPS offers employees a flexible benefit plan defined in Section 125 of the Internal Revenue Code. The plan allows for payroll deduction of certain expenditures without payment of federal and state income tax and FICA. The categories of the expenditures are: LPS insurance premiums, medical reimbursement and dependent care reimbursement.
Insurance Premiums
Currently, if you are enrolled in health, dental, or vision insurance through Lincoln Public Schools, the premiums you pay are not taxed. Premiums for term life insurance up to $50,000 are not taxed. Employees may opt to pay disability insurance with after-tax dollars.
Medical Reimbursement Account
The medical reimbursement account lets you pay yourself back with pretax dollars for medical expenses not covered by any medical and dental plans you may have. Such expenses may include your share of medical and dental expenses (including deductibles and co-payments), vision and hearing exams, eyeglasses, contact lenses, orthodontics, etc. These expenses must not have been reimbursed or are not reimbursable from any other source. Insurance premiums from insurance programs purchased outside of LPS are not eligible expenses. If you are enrolled in insurance through LPS, you are automatically paying the premiums on a pretax basis.
Dependent Care Account
If you pay for the care of your dependents so that you and, if married, your spouse can go to work, you may be able to save tax dollars through the Dependent Care account. The tax credit on your federal income taxes and the dependent care reimbursement account cannot both be used for the same expenses. If you are not working due to a leave of absence from work (maternity for instance), dependent care expenses while you are on leave are NOT eligible expenses.
To enroll:
If you wish to enroll in the Medical Reimbursement or Dependent Care accounts, you will need to complete an agreement form in which you choose the amount you want to set aside for these expenses. Beginning with the October paycheck, the amount you designate for one or both spending accounts will be deducted before taxes from your check and placed in an account for you. After you pay for expenses, you will send in a receipt along with a claim form to the company that administers the account. You will then receive a check, or you may choose to have the check automatically deposited, which will reimburse you for those expenses. Because IRS rules will not allow the school district to return unused funds to you, do not set aside more than you are reasonably sure you will spend during the year.
You may enroll during the first 31 days of employment or during September. A new agreement form must be completed each September. The plan year is October 1 through September 30.
Call Human Resources, 436-1578 or 436-1593, for an enrollment form and enrollment kit. Enrollment forms need to be submitted to Human Resources prior to September 30.
Examples of Reimbursable
Medical Expenses
(Do NOT include your medical and dental premiums, spouse's
after-tax group medical or dental premiums nor any individual
insurance premiums.)
| Medical Expenses: |
Dental Expenses: |
| Deductibles/Co-pays | Routine Exams |
| Coinsurance | Fillings |
| Prescription Drugs | Crowns |
| Over-the-counter Drugs | Bridges |
| Insulin/Syringes | Root Canals |
| Birth Control Pills | Dentures |
| Allergy Shots | Orthodontia |
| Annual Physicals | |
| Chiropractic Treatments | Vision Expenses: |
| Lamaze Classes | Annual Eye Exam |
| Psychiatric/Psychologist Fees | Glasses |
| Wheelchairs/Crutches | Prescription Sunglasses |
| Weight Loss Programs
(prescribed by physician) |
Corrective Eye Surgery |
| Hearing Expenses: |
Contact Lenses |
| Hearing Exams | Cleaning Solutions |
| Hearing Aids | Enzyme Cleaners |
| Batteries |
Tax Sheltered Annuities (403b)
A tax sheltered annuity (TSA) or 403(b) plan is a retirement plan that allows employees to set aside a portion of their pay on a pre-tax basis. The annuity is in the name of the employee and is not subject to federal or state income tax until it is redeemed in the form of cash or annuity benefits upon retirement.
You may contract with any company selling annuities that qualify under section 403(b) of the Internal Revenue Code and have agreed to abide by conditions required by LPS. An application for an annuity can be submitted at any time during the year. Any change in an annuity submitted by the last day of the month will go into effect the end of the next month. Generally, only one annuity amount change may be made each calendar year. An application for an annuity with a new company automatically stops any previous contract.
Check the LPS web site, under Popular Pages, for more information and a listing of the companies. Call the Accounting Office, 436-1703, if you have questions and to request a 403(b) application.
All personnel are required to have their paychecks directly deposited. Direct Deposit Authorization forms are available on the LPS website, in every school office and from the Payroll office, 436-1710, or Human Resources, 436-1582. Click here for paycheck lookup information.
You may invest in U.S. Savings Bonds through automatic payroll deduction. You may begin this program at any time by completing an authorization card and returning it to Payroll, Box 32. If received by the 15th of the month, a payroll deduction will be made at the end of the month.
Lincoln Public Schools has a credit union located in the district office. The Credit Union is open from 4:30 - 5:30 p.m. weekly and Saturday mornings. Please call 486-3644 for more information.
Nebraska School Employees' Retirement System
Membership
All regular employees of the Lincoln Public Schools who work 15 hours a week or more MUST participate in the Nebraska School Employees' Retirement Program and sign a beneficiary form when hired. The School Employee's Retirement plan is a Defined Benefit Plan administered by the Public Employees Retirement Board for all public school employees, certificated and non-certificated, in the State of Nebraska. Your Defined Benefit Plan, authorized by Internal Revenue Code Section 401(a), provides a retirement benefit based on a formula as defined in the law.
Employee Contributions
As a member of school retirement, you will have 7.98% of your gross salary automatically deducted from each paycheck. Your contributions earn interest that is automatically credited to your account. LPS matches your contributions at the rate of 101%. Employer contributions are not credited to individual retirement accounts, but provide funds for payment of a portion of your benefits at retirement. The employer and employee retirement contributions are submitted to the state each month. The interest rate for 2004-05 was 2.07%.
Eligibility
You may retire as early as 55 with unreduced benefits if the sum of your age plus the years of credited service equals or exceeds 85. If you have a minimum of five years of credited service and age 60, you are eligible for a monthly retirement benefit, (a full-unreduced benefit at age 65).
Employees working 1,000 or more hours during the fiscal year (July 1 through June 30) earn a year of credited service. If employees work less than 1,000 hours, they will receive the exact proportion worked.
You can visit the Nebraska School Retirement's web site at www.npers.ne.gov and work through the Benefit Estimator for an estimate of your monthly benefit upon retirement.
Ceasing Employment
If you have less than five years of credited service, you may apply for a refund of your contributions and interest at the time of resignation. If you have at least five years of credited service, you may leave your account on an inactive basis and continue to earn interest on the contributions.
State and federal income taxes are not deducted on contributions submitted after January 1, 1986. Therefore, if these funds (and the interest earned) are withdrawn prior to age 59 1/2, they may be subject to a ten percent (10%) federal tax penalty.
Please refer to the current Nebraska School Employees' Retirement System booklet, www.npers.ne.gov, or call 471-2053 for more information.
Continuum (Employee Assistance Program)
The Lincoln Public Schools, as an employer, recognizes that a wide range of personal difficulties, not directly associated with job functions, may affect employee job performance. In many instances, employees are able to overcome these personal difficulties independently with little or no effect upon job performance. However, for some employees, professional assistance may be helpful.
Beginning in 1977, Lincoln Public Schools contracted with Continuum (formerly known as Lincoln EAP) to provide counseling services for its employees. It is the policy of the Lincoln Public Schools to encourage employees to seek assistance in times of need. LPS makes the services of Continuum available to all employees and immediate family and household members at no cost. Continuum assists employees and family members to resolve a wide range of personal problems. Examples of situations that might benefit from Continuum's assistance include:
- Marital and family difficulties
- Alcohol and drug abuse
- Loss and grief issues
- Depression and difficult life events
- Stress and conflict management
- Financial and legal strains
- Career and employment concerns
Employees or immediate family members are encouraged to contact Continuum directly. In the case of an employee who is experiencing a decline in job performance, a supervisor may recommend Continuum to assist the employee in creating an improvement plan. Supervisors at LPS, while not advised to diagnose or counsel employees, are encouraged to suggest Continuum when indicated by a change in job performance of an employee.
Visits and conversations with Continuum counselors are confidential. Only when legally required, or upon written consent of the client, can a Continuum counselor share information. In no way does an employee using Continuum's services affect job security or possibility of promotion.
Call 476-0186 or 1-800-755-7636 for an appointment or for more information. Their web site is www.4continuum.com which features articles and Online Interactive Services.
Normal working hours are Monday through Friday, 8:00 a.m. to 5:00 p.m. Evening appointments are available by arrangement.