Cash-in-Lieu of Benefits Option

Branchburg Township School District

 

                   

                   

The Board of Education offers the “cash-in-lieu of benefits” waiver option to eligible employees. This waiver option offers flexibility in creating a personalized package of benefits and is an alternative to selecting health care coverage through the District. 

 

If you have medical, prescription, or dental coverage elsewhere, you could choose to receive a cash payment instead of Board-paid insurance as shown below.  The final dollar amount of the cash payment is determined by the monthly premium rates charged by the respective insurance carrier and by Board policy.

The payment amount is halved and distributed twice each school year.  Amounts are pro-rated according to your enrollment in the waiver option.  You must re-enroll for the waiver benefit each year during the annual Open Enrollment period.

 

Note the waiver payment is subject to a deduction of 1.5 percent of your salary or a percentage of the premiums, whichever is higher. The annual waiver payment is capped at $5,000.

If you are waiving benefits, you can re-enroll in the District health plans under the following conditions:

 

1)    At Open Enrollment for any reason

2)   Immediately, if you lose your other coverage, upon proof of any of the following:

a.    Your spouse’s death, disability or loss of employment/health benefits

b.    Divorce or legal separation

c.    Activation of your spouse to full-time military status

Please note that waiver payments are not a salary payment and are not pensionable.  This compensation is considered as ordinary income and is taxable as such. 

 

If you believe you are eligible for the Cash-in-Lieu of Benefits option and wish to enroll, please print and return the completed form to the Business Office as follows:

• Medical / Prescription / Dental Waiver Form