Pre-Tax Insurance Premium Plan

The Town's Section 125 Pre-Tax Insurance Premium Plan allows employees to have their medical, dental, and/or long-term disability (LTD) insurance premiums deducted from their gross pay on a pre-tax basis each calendar year (Calendar Year = Plan Year).  This means that the portion of the salary that goes toward these insurance premiums is not subject to federal or state income taxes or the FICA/Medicare tax. 

By filing a "Participation Election/Change Form", employees may choose to waive pre-tax participation in the disability and/or medical/dental premium portions of the Plan (note that employees may not separate their medical and dental participation elections from each other).  Participation elections cannot be changed during the Plan Year, unless the employee experiences a qualifying event (see the back of this page for further explanation).

At the beginning of each Plan Year, employees are given the opportunity to change their election under this Plan by completing a "Participation Election/Change Form" (link below).  If an employee does not submit a form to HR by the deadline for any given Plan Year, his/her deductions will be treated as they were in the previous year.

Pre-Tax Premium Participation Election/Change Form