Premium Only Plan
Burlington Township School District

Current FSA/POP Summary Plan Description
Current Commuter Summary Plan Description

A Premium Only Plan (POP) is the foundation of an FSA plan. Eligible employees are not required to pay FICA or federal taxes (with exceptions) on money used to pay for their portion of qualified health insurance premiums, e.g., contributions to their Flexible Spending Account (FSA).

What is a Premium Only Plan (POP)?
The IRS Section 125 Premium Only Plan, or the POP plan, allows you to pay for qualified health insurance premiums using pre-tax dollars. These pre-tax dollars are subtracted from your gross earnings before taxes are applied so your taxable income is lower and your take-home pay is increased.

When can I enroll or make a change to my POP enrollment?
You may enroll or make a change to your election at the start of each plan year.  However, qualifying life events may allow you to adjust your election during the plan years: this includes marriage, divorce, birth of or adoption of a child, death of your spouse or a dependent, ending or beginning employment, a change in employment status, or unpaid leave of absence. The change must be reported within 31 days and your election change must be consistent with the change in status.

How will pre-taxing impact my Social Security benefits?
The Social Security benefit is based on total wages accumulated during your lifetime; the federal government uses a specific formula, which is subject to change, to calculate these benefits. A reduction in your taxable pay may also lead to a reduction in Social Security benefits; however, for most employees, the reduction in Social Security benefits is insignificant when compared to the value of lowering taxes now.