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FAQs
Flexible Spending Accounts > MSC Premium Conversion Program



What is the MSC Premium Conversion Program?
How do I benefit from the Premium Conversion Program?
How do I enroll?
Can I make changes in my status mid-year?
How do I get further information on this program?

What is the MSC Premium Conversion Program?
The Premium Conversion Program enables eligible employees to pay for their health plan premium deductions on a before-tax basis, thereby reducing their gross income for tax purposes.

Download FSA Program Forms & Brochures

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How do I benefit from the Premium Conversion Program?
Currently, health plan deductions for basic and/or optional benefits are deducted from your salary. For tax purposes, payments are made on a before-tax basis, effectively reducing the salary on which your taxes are computed by the amount of the health plan deduction.

Therefore, federal and Social Security taxes that must be withheld are reduced. The net effect will be that you receive more money in your paycheck.

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How do I enroll?
Enrollment in the Premium Conversion Program is automatic. If you have a health plan premium deduction, it will automatically be taken on a pre-tax basis. However, you are able to choose post-tax payments if you wish. Employees may change from pre-tax to post-tax or vice-versa during the Health Benefits Fall Transfer Period.

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Can I make changes in my status mid-year?
Employees must choose to pay on a pre-tax or post-tax basis for an entire year and cannot change unless an approved Qualifying Event occurs mid-year.

Similarly, employees who declined enrollment in the Premium Conversion Program may enroll mid-year only if a Qualifying Event occurs.

Learn more about Qualifying Events

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How do I get further information about this program?
Contact the MSC Administrative Office at (212) 306-7760.

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Spotlight

Employee Assistance Programs (EAPs)
EAPs are staffed by professional counselors who can help employees and their eligible dependents handle problems in areas such as stress, alcoholism, drug abuse, mental health, and family difficulties.

 Learn More
Quick Links

 PICA Program
 NYC Employee Blood Program
 Collective Bargaining Agreements
 OPA Web site
 NYC.gov