Pre-Tax vs After Tax
When signing up or updating your NYSHIP option during Open Enrollment, you can choose to charge your premium before or after taxes. There are benefits and drawbacks to each option.
Pre-Tax (Before Tax)
If you choose the pre-tax option, you may lower your tax liability. In general, this means your taxable income is lowered, which may result in you paying less taxes. There is no guarantee that you will pay less taxes. Contact your tax advisor to learn more about your specific situation.
In exchange, you agree to maintain the same pre-tax health insurance deduction for the entire plan year. You can only change your NYSHIP health insurance plan mid-year if you experience a qualifying life event and the change is consistent with the event. You must notify NYSHIP and/or your HBA within 30 days of the event.
After Tax
If you choose after-tax and decline PTCP, you may have greater flexibility to make changes to your NYSHIP coverage in the middle of the plan year. Changes must still be consistent with NYSHIP rules.
Qualifying for PTCP
To be eligible to participate in PTCP, you must:
- Be an active New York State employee
- Receive regular paychecks
- Deduct health insurance premium from your paychecks
If you are billed for your health insurance directly or are a retiree, COBRA, or YAO enrollee, you are not eligible.
When to Sign Up
You can only enroll for PTCP during the Open Enrollment. This is the only time during the year you can change your PTCP status.
You do not need to reenroll in PTCP each year. Your current PTCP status will carry over to the next plan year, unless you change it during the PTCP Election Period.
How to Pick Your PTCP Status
To pick pre-tax or after-tax status, you must complete the NYSHIP Health Insurance Transaction Form (PS-404) and submit it to your HBA or Agency Contact. There is a section in the form regarding pre-tax election. Choose the option that best matches your needs.