Section 125 Plans

The Company offers a pretax contribution option for employees, commonly known as a Section 125 plan.

A Section 125 plan allows employees to make contributions toward premiums for medical insurance, dental insurance, and certain out of pocket medical or dependent care expenses on a pretax basis rather than after tax. Premium contributions and qualified expenses are deducted from gross pay before income taxes and Social Security are calculated.

To participate, an employee must complete an election form and return it to Human Resources.

Once elected, pretax contributions cannot be changed until the next open enrollment period unless the employee experiences a qualifying change in family status or becomes eligible for a special enrollment period due to a loss of coverage. Family status changes include marriage, divorce, the death of a spouse or child, the birth or adoption of a child, or termination of a spouse's employment. A change in election due to a change in family status takes effect the next pay period.