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LA County workers – how to maximize your benefit dollars

Beginning in 2020, there will be a cap of $325/month on taxable cash back. Any surplus County contribution above $325/month will not be available as take home pay. But, you can maximize your benefit dollars, and avoid any loss, by spending the surplus on other Options benefits.

WHAT CAN SHE SPEND THE SURPLUS ON?

Spending accounts: She can put surplus benefit dollars in a Health Care Spending Account to use pre-tax money to pay for eligible health care expenses, such as office visit copays, prescriptions, vision care, dental expenses, hearing aids, and certain over-the-counter medical supplies. If she has young children or elders, she can put surplus benefit dollars in a Dependent Care Spending Account to use to pay for eligible dependent care expenses, such as daycare centers, preschool, and adult daycare.

Optional group term life insurance: She can use the surplus to purchase up to 8 times her annual salary in optional life insurance. Each year she can increase her insurance benefit by one level. Additionally, if she has already purchased life insurance for herself, she can purchase dependent term life insurance for her spouse or domestic partner and dependent children.

Long-Term Disability (LTD) health insurance: If she’s in retirement plan A, B, C, D, E, or G and enrolled in an Options medical plan, she automatically gets 75% LTD health insurance coverage. Using her surplus, for $3/month she can increase to the 100% LTD health insurance level. This means her full medical plan premium would be covered while she’s on long-term disability.

Accidental Death & Dismemberment (AD&D) insurance: AD&D insurance provides benefits for paralysis, loss of life, limb, eyesight, hearing, or speech. If she has already purchased AD&D insurance for herself, she may use the surplus to purchase insurance for her spouse or domestic partner and dependent children.

Need more details on changes to your LA County benefits package? Click here.

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