Participant Rights and Responsibilities Upon Transfer or Termination
Tax Saver Benefit (TSB) Plan
TSB is a program that allows reduction of the employee's salary to purchase certain benefits with pre-tax dollars. The plan is offered in three distinct parts:
- Premium Conversion. Employee contributions for their IU-sponsored health care plan and Personal Accident Insurance are automatically taken from the employee's salary on a pre-tax basis.
- Health (medical, dental, and vision) Expense Reimbursement Account. An employee may elect to set aside pre-tax dollars in a reimbursement account to pay for IRS-qualified medical, dental, and vision expenses that are not covered by any type of insurance program.
- Dependent Care Reimbursement Account. An employee may elect to set aside pre-tax dollars in a reimbursement account to pay for child or elder care.
The plan is subject to IRS regulations. Mid-year changes in contributions are limited to those consistent with IRS-defined "changes in status," such as marriage, birth of a child, or change in dependent care provider rates.
Reimbursement accounts and claims for expense reimbursement accounts are administered by The Nyhart Company.
All full-time Academic and Staff employees are eligible to participate in the Tax Saver Benefit Plan (TSB).
An employee is no longer eligible for participation in TSB when the employee:
- terminates from the university; or
- ceases to be a member of the eligible class for coverage.
For Health Expense Reimbursement Accounts only, the employee may continue to participate under COBRA provisions, on an after-tax basis for the remainder of the calendar year.
Premium Conversion. There is no residual value to Premium Conversion after participation stops.
Health Expense Reimbursement Account. The employee is entitled to be reimbursed for qualified expenses incurred after the date that eligible employment terminates, only if the employee elects to continue participation in the plan by continuing to make contributions on an after-tax basis. Upon termination, employees with a remaining balance will receive a COBRA notice, election form, and instructions for this option from Nyhart.
Claims for expenses incurred during participation in the plan must be submitted by April 15th following the end of the calendar year in which the expenses were incurred. Any unclaimed portion of the account is forfeited.
Dependent Care Reimbursement Account. The employee is entitled to be reimbursed for dependent care expenses incurred through the date the eligible employee terminates. Claims for expenses incurred during participation in this plan must be submitted by April 15th following the end of calendar year. Any unclaimed portion of the account is forfeited.
Summary of actions the participant must take:
- No action is needed. Premium contributions stop with the employee's last paycheck.
Health Expense Reimbursement Account
- To continue participation, submit the COBRA election form to Nyhart within 60 days of the date that coverage would have otherwise ended.
- Pay initial COBRA contributions to date to Nyhart within 45 days of electing COBRA.
- Pay monthly COBRA contributions to Nyhart on time.
Health Expense and Dependent Care Reimbursement Accounts
- Submit claims for eligible expenses to Nyhart by April 15th following the end of the calendar year. Any unclaimed portions of reimbursement accounts are forfeited after that time.
- Notify Nyhart of address changes.
- Notify Nyhart of a "change in status" within 30 days of the event.
Forms for filing claims for health or dependent care reimbursement can be obtained from a Human Resources office, the University Human Resource Services Web site (hr.iu.edu/benefits/tsb.html), or by calling Nyhart, the plan administrator. Claims can also be submitted online at iutsb.nyhart.com.
Nyhart Customer Service:
The Nyhart Company, Inc.
8415 Allison Pointe Boulevard, Suite 300
Indianapolis, IN 46250-4201
(800) 284-8412 phone
(888) 887-9961 fax